Both Batch management and serialization have given companies an opportunity to track and trace their products across the value chain. A batch number is used to identify and trace a set of identical products that share certain characteristics of production (for example, production time, production date, identification code, etc.). This means that multiple units of a product can have the same batch number. Serialization, on the other hand, assigns a unique serial number to each unit and differentiates individual products within the batch. This is an important distinction and one that forms the foundation for the multiple benefits that serialization offers over batch coding.
Manufacturing companies have been using batch coding for not only identification of the specific batch produced, but all relevant issues of quality control and manufacturing particulars are also traceable using the batch number. These are either maintained manually or automated to report all activities from the point of the material master level to the point of sale. This batch management or lot management has many gaps when we consider track and trace of each unit of product as no unique identifier is provided to the individual products for the purpose of differentiation.
Therefore products which have batch coding face challenges:-
Open to counterfeits:
As no unique identifier is assigned to every unit of the product, a counterfeiter can easily replicate multiple copies and assign a bogus batch number. This can circulate in the market under your brand name, may affect your goodwill, and may even be returned to your outlet as defective. The manufacturing unit will not be able to trace if the product is original and belonged to the batch and if it was sold or not?
The track and trace of such products get mixed up and damages your brand image adding to the hurdles created due to lack of anti counterfeit solution.
Not equipped with multiple functions:
Traditional batch management systems are not designed to manage functions such as inventory management, material management, goods movement, warehousing, and packaging. In order to optimize these functions, one needs to have real-time data at the individual unit level with analytics. A lack of data due to batch coding results in a waste of resources in operations and leaves significant opportunities for optimization.
Open for pilferage:
Supply chain traceability has its limitations and posts the distributor level is not visible to the company. This allows a counterfeiter the opportunity to shelf the counterfeit products with the originals.
Serialization has an edge over batch coding as serialization allows an opportunity for aggregation which is not always the case in batch coding. A number of reasons help explain what makes product serialization beneficial, especially for high-volume, easily counterfeited products. Serialization codes vary widely and may include an SKU, production date, product attributes like temperature, expiration date, and even the plant and production line where the product was manufactured. This is mostly beneficial in consumer products and currently used primarily in the pharmaceutical industry due to health and safety implications.
Internet of things (IoT) has made the implementation of serialization easy for companies with digital IDs connected to a secure cloud platform that assigns the serial numbers and does aggregation for the company while maintaining records and updating the journey of the product in the value chain.
How serialization overcomes the shortcomings of batch coding:-
Protection of consumer safety:
Take full advantage of the increased level of traceability, in order to detect and prevent possible counterfeiting of products. In the case of sensitive products like pharma or food, it is very important the product is confirmed as genuine.
Brand protection and Anti counterfeit solution:
Serialization through digital identity indirectly creates an anti-counterfeit packaging for their brand which cannot be replicated. The IoT track and trace solutions allow tracking the unit by its serial number till the point of sale which informs the company about the journey of the product and which retailer made the sale. The company also gains the ability to bifurcate between a fake and original product which can detect the origin point of pilferage in case of returns. This would not only minimize chargebacks against faulty claims but also protect your brand name in the market.
Product demand forecasts and analytics:
Supply chain traceability and visibility gives the company access to data about the demands and current stock levels in the market. A better allotment of the products can be made using this data. The system can also highlight the problem areas where the money is lost and rework the supply chain for the best results.
Recall integrity:
A faulty batch is recalled from the market if the one unit checked has major flaws. Reverse logistics is a challenge however since not all products within the batch will be flawed. This can mean that one machine defect which will be in 25% of the total batch can lead to 100% of the product being recalled and retested using unnecessary funds. Serialization would make recall decisions easier backed with solid data and exact information on how many of the products from the batch are sold.
Product diversions:
Product diversion happens when a lot intended for a distributor is redirected to another distributor channel without the knowledge or permission of the vendor. This is usually done due to prices difference and loss for the company. In the case of batch coding, there is a possibility that the batch is broken down to reach multiple suppliers and cannot be traced back. Serialization makes this visible and open for action.
Government regulations:
Comply with the regulations that are being put in place in an increasing number of countries, aimed at improving product traceability and detecting and preventing counterfeits. Such opportunities allow the government to have more faith in your brand along with certifications.
Serialization hence adds significant value over batch coding to protect your brand and give you visibility into your supply chain. Without implementing serialization, your brand is prone to theft, pilferage, and market fluctuations. As one of the leading Supply chain traceability solution providers, Sepio Products Private Limited has focused on making the transition from batch coding to digital serialization easier and customizing it as per the needs of your brand.
To get the best solution for your supply chain needs, submit your inquiry to hello@sepioproducts.com.
Product traceability solutions focus on reducing product duplication in a company’s supply chain, but in contemporary times, traceability platforms such as LetsVeriFy are offering brands far more than just that
ReplyDeleteThe supply chain is one of the major processes that should be technologically advanced to enable your brand and customers to track the product. But tracking is a bit common in most countries. Product serialization takes you one step ahead to accurately track each product item with unique codes assigned to them.
ReplyDeleteProduct serialization takes you one step ahead to accurately track each product item with unique codes assigned to them.
ReplyDeleteProduct serialization effectively prevents this counterfeiting situation from happening due to the unique QR Code allotment to the products.
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