The rapid evolution of supply chain technology has brought about new solutions to age-old challenges, including pilferage—the unauthorized taking of goods during transport or storage. For industries like pharmaceuticals, luxury goods, and fast-moving consumer goods (FMCGs), pilferage poses significant financial risks and damages brand integrity. The advent of QR code-enabled track and trace systems offers a sophisticated approach to mitigating these losses by enhancing visibility, improving accountability, and ensuring product authenticity throughout the supply chain.

The Mechanics of QR Code-Enabled Track and Trace Systems

QR codes, or Quick Response codes, have become a highly adaptable technology in supply chain management. Unlike traditional barcodes, which store a limited amount of data, QR codes can encode complex information about the product, such as its manufacturing details, shipment history, and current status. When used in track and trace systems, QR codes serve as unique, non-replicable identifiers for each item, allowing stakeholders to monitor the movement of goods in real time.

Embedding QR codes on product labels can track individual items from the point of manufacture to their final destination. The system leverages cloud-based platforms to store and retrieve data, providing manufacturers, logistics partners, and customers with access to vital product information through a simple scan using smartphones or specialized scanners. The ease of integration and flexibility of QR codes make them a robust tool for supply chain transparency and pilferage prevention.

Acviss’s Certify: Ensuring Product Authenticity

Certify by Acviss provides unique, non-cloneable security codes embedded within the packaging. These codes act as digital certificates, allowing consumers to verify the genuineness of a product quickly and easily. When combined with sustainable packaging materials, Certify not only enhances product security but also reinforces the commitment to eco-friendly practices. By ensuring that each product can be individually authenticated, Certify helps prevent counterfeiting while supporting the transition to greener packaging solutions.

Preventing Pilferage in Transit and Storage

Pilferage, often occurring during transportation and warehousing, is a significant problem for many industries. According to the National Cargo Security Council, global cargo losses due to theft and pilferage exceed $30 billion annually, with high-value sectors such as pharmaceuticals and luxury goods being prime targets. The lack of visibility during transit, coupled with traditional, often manual, inventory tracking methods, creates opportunities for theft and mishandling.

QR code-enabled track and trace systems address these vulnerabilities by introducing a layer of real-time monitoring and accountability. Every scan of the QR code at various touch points—such as manufacturing facilities, distribution centres, and retail outlets—is recorded on a central platform. This creates a digital trail that allows companies to track the movement of goods and quickly identify any irregularities in the supply chain. In the event of pilferage, the system can pinpoint where and when the product was tampered with, streamlining investigation processes and reducing the time it takes to respond to such incidents.

QR codes facilitate secure verification at each stage of the supply chain. For instance, warehouse operators can scan the code upon receiving goods, ensuring that the number of items received matches the shipment manifest. Any discrepancies can be immediately flagged, enabling swift action to prevent further losses. This level of oversight not only deters pilferage but also reduces human error in inventory management, ensuring more accurate stock control.

Enhancing Accountability Across the Supply Chain

Accountability is a critical factor in combating pilferage. Traditional supply chains often suffer from a lack of transparency, with limited visibility into who handles products and when. This lack of oversight allows theft to go unnoticed until it is too late to recover the goods. QR code-enabled systems change this dynamic by creating a decentralized but accessible record of every product's journey through the supply chain.

By providing unique identifiers for individual items, QR codes eliminate the ambiguity that often exists when multiple entities handle the same product. Each scan generates a timestamp and location, which is logged in the system. This ensures that there is a clear, auditable trail of who interacted with the product and when. If a product goes missing or is tampered with, the company can trace the last known location and identify the person or entity responsible for handling it at that point. This level of traceability enhances accountability and serves as a deterrent to internal theft.

In addition to monitoring employees and logistics partners, QR codes can be integrated into customer-facing systems, providing end consumers with the ability to verify product authenticity. This feature is especially valuable in industries prone to counterfeiting, such as luxury goods or pharmaceuticals, where customers want assurance that they are purchasing genuine products. By scanning the QR code, consumers can instantly access product details, including its origin and shipping history, further cementing trust in the brand.

The Impact of QR Code Systems on High-Risk Industries

Certain industries are disproportionately affected by pilferage due to the high value of their goods. Pharmaceuticals, for instance, face not only the financial burden of pilferage but also the risk of endangering public health if stolen products enter unauthorized or counterfeit markets. According to the Pharmaceutical Cargo Security Coalition (PCSC), cargo theft targeting pharmaceuticals in the United States alone results in losses amounting to tens of millions of dollars annually. The stolen products, when sold on the black market, can lead to serious consequences for consumers, including exposure to contaminated or expired drugs.

QR code-enabled track and trace systems provide an effective solution to this problem. By offering a verifiable chain of custody, these systems help pharmaceutical companies maintain the integrity of their products throughout the supply chain. The ability to authenticate the legitimacy of each product at any point reduces the likelihood of stolen or counterfeit drugs reaching consumers.

Similarly, the luxury goods sector, known for high pilferage rates due to the value of its products, benefits from the implementation of QR code systems. The loss of a single shipment of high-end watches, bags, or jewellery can translate into millions of dollars in losses. The ability to track each product with a unique QR code ensures that brands can quickly identify if their items have been tampered with or stolen, allowing for a swift response to prevent further damage.

Future-Proofing Supply Chains with QR Code Technology

The global supply chain landscape is rapidly evolving, and companies must adapt to meet new challenges, including more sophisticated forms of pilferage and theft. QR code-enabled track and trace systems represent a significant leap forward in supply chain management, offering a scalable, efficient, and secure solution to prevent losses at multiple touchpoints.

Investing in QR code technology today can future-proof operations against both current and emerging threats, ensuring that their products are protected from pilferage, counterfeit activities, and other supply chain risks. This technology not only protects the bottom line but also strengthens customer trust, enhances brand reputation, and ensures compliance with evolving regulatory demands for transparency and accountability.