Traceability at the Forefront: How Retail is Evolving in 2024?
The French Fashion house Chloe has introduced a digital ID system to enhance product traceability. Just a few months ago, Adidas and H&M, along with other retail brands, signed a pledge to ramp up transparency in the leather supply chain.?
Unlike greenwashing claims, traceability is the buzzword in the retail industry. With quickly evolving capabilities across RFID, IoT, and AI, tracking supply chain components isn’t another logistics trend - it is the new normal.?
Tracking Trust: Why the Retail Industry Is Backing Traceability?
In recent years, traceability has become the benchmark for retailers to overcome supply chain shocks. Here’s why brands are pushing hard for greater supply transparency and control.
1) Regulatory Compliance
Environmental, labor standards, and product safety regulations are tightening the noose around global retailers. The European Union’s Circular Economy Action Plan mandates digital product passports for specific goods.?
Brands are partnering with traceability platforms to maintain a digital record of production processes, certifications, materials, and end-of-life options.
2) Rising Counterfeit Cases
The luxury goods industry has long been a prime target for counterfeiters, and the scale of the problem is staggering. For example, in March 2021, authorities in India seized counterfeit goods worth 20 million from a godown. These items included fake apparel imitating well-known brands like Allen Solly, Mufti, and Louis Philippe. Such cases highlight the importance of supply chain traceability.?
3) Product Quality and Safety
Product recalls and defects hurt a brand’s reputation and profitability. According to IBM, 79% of consumers value authenticity and quality when shopping. Tracking traceable information like product origin, manufacturing conditions, and sustainability helps brands connect with shoppers.?
In case of defects or contaminated items, traceability ensures quick identification and removal of goods, minimising harm and liability. ?
What’s Next for Traceability Technologies?
As leaders in traceability solutions, we’re continuously developing solutions like RFID, IoT, and AI to help businesses monitor their supply chains. Here are the latest technological innovations that promise an exciting future for the retail industry.?
1) Next-Gen RFID Tags
Radiofrequency tags are a front-running technology utilised industry-wide. Supply chain innovators are taking this technology further with Real-Time-Item-Level-Visibility(RTILV). Item-level tracking unlocks greater visibility and control over every tiny component in the production process.
2) IoT-Based Industrial Tracking
IoT enables the integration of RFID chips, barcodes, and geolocation technologies to track the exact location, temperature, and humidity of every batch. The attached Manufacturing Enterprise Software (MES) analyses the data to alert the staff for any possible intervention.?
3) The Touch of Generative AI
The days of data-based prediction are over. Generative AI will analyse data at scale, identify anomalies, and make suggestions to solve them through visual, textual, voice, and graphic information - almost instantaneously. KPMG predicts that 50% of organisations will invest in generative AI in a few years.
Conclusion
With stricter regulations and rising consumer expectations, traceability will redefine the future of the retail industry in 2024 and beyond - are you ready to empower your supply chain network?
About Qodenext
Qodenext is a pioneering supply chain traceability technology, consulting, and service company and the largest Automatic Data Information Capture solutions provider in India. Using the power of barcode, RFID, vision, cognitive computing, IoT, predictive analytics, and emerging technologies, Qodenext’s solutions enable clients to integrate their supply chains and facilitate end-to-end visibility and connectivity. Born from the coming together of Intellicon Pvt. Ltd., Essae Technology Pvt. Ltd., and Intercode Pvt. Ltd., Qodenext provides its many clients unprecedented solution breadth, specialised domain expertise, and an expansive support network. More information is at Qodenext.
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