There is a common belief that traceability solutions alone will eliminate counterfeiting and simplify product authentication. However, while item-level traceability enhances product transparency, the most commonly adopted technologies come with vulnerabilities, especially in terms of authentication.
In industries such as cosmetics, pharmaceuticals, tobacco, and food and beverage, traceability is used to track the history, location, and movement of a product throughout its supply chain.
This is often driven by changes in market regulations, pushed by governments to enhance transparency for consumers and to improve oversight of manufacturing and delivery for fiscal and regulatory purposes.
Traceability typically relies on a unique identifier that is attached to a product to allow the movement of the product to be tracked through various stages of production, distribution, and retail. Scanning these identifiers at key points in the supply chain creates a digital ‘trace’ of the product’s journey.
These identifiers can take several forms:
Currently, 99% of industries rely on alphanumeric codes and barcodes because they are cost-effective and easily integrated into existing manufacturing lines, which are typically equipped with printing heads for product customisation.
However, as already mentioned, these technologies come with vulnerabilities:
To enhance product security, traceability systems must be integrated with additional authentication features that can be easily recognised by the human eye and verified through mobile apps or dedicated devices.
Examples of such features include digital proprietary codes,security labels/stamps, and secure RFID tags.
While these authentication technologies offer powerful solutions, their integration into large-scale manufacturing operations presents a set of unique challenges.
The adoption of authentication features often requires significant customisation to meet specific industry or customer needs.
This is particularly true in mass production environments where manufacturers produce billions of units annually. Customising each unit with unique security features can slow down production, increase manufacturing costs, and complicate logistics.
For example, integrating RFID tags into every product or batch of products requires additional equipment, specialised personnel, and time. While the need for security is clear, balancing this with the demands of high-volume production is a delicate paradox. Manufacturers must weigh the importance of preventing counterfeiting against the efficiency of mass production – a tension that can delay adoption of security features across the supply chain.
Given these complexities, a holistic approach to product security is necessary.
While traceability provides valuable information about a product’s journey, it cannot guarantee authenticity on its own. Counterfeiters are increasingly sophisticated, and traditional traceability methods alone are often insufficient.
To effectively combat counterfeiting, governments and industries must collaborate to integrate traceability with advanced authentication technologies. A one-size-fits-all solution is not feasible due to the unique needs and vulnerabilities of different industries.
For instance, in pharmaceuticals, where counterfeit drugs can have life-threatening consequences, tamper-evident packaging and encrypted codes may be required.
In contrast, industries like consumer electronics might adopt simpler solutions like RFID tags or QR codes.
To mitigate the impact of authentication features on production, manufacturers can explore several strategies:
Simultaneously, industries must continue to invest in scalable, cost-effective solutions that meet their unique security needs. A combination of traceability and authentication will be critical in protecting consumers and ensuring the integrity of global supply chains.
Improving product security requires a collective effort from governments, industries, and consumers.
A combination of traceability and advanced authentication technologies is essential for tackling the growing threat of counterfeiting.
While there are challenges – particularly in cost, customisation, and production efficiency – the benefits of implementing these systems far outweigh the risks of inaction.
By fostering collaboration and investing in scalable solutions, we can create a secure, transparent marketplace that protects both consumers and businesses. The future of product security lies in integrating technologies that are adaptable, scalable, and capable of ensuring the authenticity of products in an increasingly complex global economy.
Treegen is an independent consulting firm specialising in the security industry, with a focus on identity and value document protection, banknote protection, brand protection, and traceability and digital authentication. Treegen’s services cater to governmental entities, central banks, security printing houses, solution providers, financial investors, and brand owners.
