In our interconnected world, counterfeiting and fraud have become pervasive issues across industries, causing substantial economic losses and compromising consumer trust. Fortunately, advancements in technology have given rise to an effective solution: track and trace technology. By employing this powerful tool, businesses can thwart counterfeiters, protect consumers and bolster their reputation.
How Track and Trace Can Be The Answer
One of the fundamental advantages of track-and-trace technology is its ability to foster transparency within the supply chain. By implementing unique identifiers, such as QR codes or NFC tags, companies can monitor the movement of products from their origin to the end consumer. This transparency provides valuable insights into the journey of a product, ensuring that it is not tampered with or substituted along the way.
According to a report by the Organization for Economic Co-operation and Development (OECD), counterfeit goods account for approximately 3.3% of global trade. By leveraging track-and-trace technology, businesses can effectively identify and eliminate counterfeit products, safeguarding their customers from potential harm and preserving their brand integrity.
Blockchain in Track and Trace
In addition to the use of unique identifiers, blockchain technology also plays a significant role in enhancing transparency within the supply chain. Blockchain can be used in track and trace by providing a decentralized and tamper-resistant ledger that records the movement of products throughout the supply chain. Each transaction or event is securely recorded, creating an immutable audit trail. This enables real-time visibility and verification of product authenticity and ensures transparency. Combining track-and-trace technology with blockchain can help in increasing accountability and regulatory compliance.
Why your Brand should use track and trace systems.
1. Protecting Consumer Safety:
Counterfeit products pose significant risks to consumer safety. From counterfeit pharmaceuticals to fake automotive parts, these illicit goods can have severe consequences. By integrating track-and-trace technology into their operations, companies can authenticate products and verify their legitimacy. This proactive approach ensures that consumers receive genuine, safe products and mitigates the potential for harm caused by counterfeit goods.
To understand the picture, the World Health Organization (WHO) estimates that counterfeit pharmaceuticals contribute to over 250,000 deaths each year. So employing a solution like track-and-trace technology can minimize these grim statistics by enabling consumers and regulatory authorities to verify the authenticity of medications, ensuring their safety and efficacy.
2. Headstart in the competition:
Brands with anti-counterfeit solutions get more customer support than brands without them. A company needs to protect its products not just to save its profits but to build an authentic brand image and goodwill. It is a necessity to protect the interest of the stakeholders for the long-term success of the company.
And a brand with proper authentication measures implemented can enjoy additional profits as well. Customers will be happy to pay more for the efforts put in by the brand which saves them from scammers and fraudsters.
3. Mitigating Financial Losses:
Counterfeiting and fraud not only harm consumers but also result in staggering financial losses for businesses. According to the International Chamber of Commerce (ICC), global losses due to counterfeiting and piracy have reached $3 trillion by 2022. Track-and-trace technology acts as a powerful deterrent by enabling companies to detect counterfeit products and initiate swift legal actions against perpetrators.
Moreover, by preventing the circulation of counterfeit goods, companies can protect their revenue streams and preserve customer loyalty. Customers are likelier to trust and remain loyal to a brand that actively takes measures to combat counterfeiting, ensuring that their hard-earned money is well-spent on authentic products.
4. Building Consumer Trust:
Consumer trust has become a valuable currency for businesses in an era marked by a deluge of counterfeit products. By leveraging track-and-trace technology, companies demonstrate their commitment to authenticity and consumer welfare. This proactive approach not only safeguards consumers but also fosters a sense of trust and confidence in the brand.
It was found in a study that, 83% of consumers believe that companies must take steps to authenticate their products. Implementing track-and-trace technology sends a powerful message to consumers, assuring them that the company prioritizes their safety and satisfaction.
5. Strengthening Regulatory Compliance:
In highly regulated industries such as pharmaceuticals, track-and-trace technology helps companies meet stringent regulatory requirements. Governments around the world are implementing track-and-trace regulations, mandating the use of serialization and product authentication techniques. By embracing this technology, companies can streamline compliance, reduce the risk of penalties, and maintain good standing with regulatory bodies.
Central Drugs Standard Control Organization (CDSCO), US Drug Supply Chain Security Act (DSCSA) and the European Union's Falsified Medicines Directive (FMD) have mandated that pharmaceutical companies implement track-and-trace systems. By adopting these systems, companies can adhere to these regulations while effectively protecting their customers and brand reputation.
Acviss’s Origin employs blockchain technology and patented technology to provide transparency and traceability in the supply chain. Origin allows customers and brands to track their products across their lifecycles, from raw materials to the distribution chain. The custom-branded app helps to track them and pinpoint the exact location at which the product is getting tampered with.
A long way to go!
Track-and-trace technology has emerged as a vital weapon in the ongoing battle against counterfeiting and fraud. By enhancing supply chain transparency, protecting consumer safety, mitigating financial losses, strengthening regulatory compliance, and building consumer trust, businesses can effectively combat counterfeit products and preserve their integrity. As technology continues to evolve, companies across industries must embrace track-and-trace solutions to safeguard their customers, their bottom line and their reputation in the market.
