How does manufacturing can reap benefits from serialization?

Traceability is a key element of the modern supply chain. It lets supply chain workers understand how inventory moves across the network. Traceability adds visibility and transparency from a material’s origin to the product’s delivery. Traceability is a legal rule in some industries. For example pharmaceutical industry- The Drug Supply Chain Security Act (DSCSA) has been passed by the Federal regulations in the U.S. which have made traceability of prescription drugs mandatory. To ensure patient safety, the DSCSA obliges pharmaceutical companies and distributors to identify drugs, surgical equipment, and other medical devices throughout the supply chain. Similarly, the Food Safety Modernization Act (FSMA) also entails traceability for food suppliers. The objective is to decrease the risks of foodborne illnesses. Plus, the FSMA identifies goods using unique identifiers to start recalls when necessary.

Traceability through serialization

Serialization is the process of assigning unique code numbers such as IMEI, RFID, or barcode to the product packaging. These codes are read through a scanning device into the system software and the software report location and status to a back-end-system. Serialization is an important component for traceability, as it helps to identify products down to the item level.

Serialization gives supply chain providers real-time insights into a product's history, including the chain of custody. Manufacturers and distributors can make sure to follow regulatory compliance to mandates such as the DSCSA and FSMA. Also, sterilization of the supply chain provides greater integrity and improved ability to process returns and rebates.

Full product traceability

The most important benefit of the serialization is full product traceability. The manufacturing run can remain intact in instances needing recall management. This is possible by recalling only the defective batches with specific serial numbers. This will save a significant amount of money for the manufacturers. Serialization enables us to separate quality products from the defected ones without disrupting the entire manufacturing process.

Operational Benefit

Unit Level traceability which provides significant operational benefits such as manufacturer can have improved data accuracy which results in smooth and higher productivity. Supply chain providers believe that serialization leads to efficient inventory management. Plus, it improves the ability to process returns and yields greater chain integrity. Supply chain professionals with access to serialized data can track a product’s real-time status. With access to real-time information, manufacturers can streamline their operations through enhanced efficiency accuracy.

Cost Reduction

Better supply chain visibility help control inventory and reduce costs due to product loss or shrinkage. Being able to track and trace the origin of recalled products, results in rapid removal from store shelves.

Product Authentication and Brand Protection

Authenticating your product through serialization allows the manufacturer to detect and combat counterfeit products as they travel through the supply chain. The publicity of counterfeit products can pose a threat to even the powerful brand names. Strong serialization strategy provides enhanced product security, ensure business continuity, and safeguard product warranty.

Bottom line

The benefits of serialization are almost countless when it comes to retrieving data, maintaining and establishing brand integrity in manufacturing industries.

She is a Digital Marketing Strategist in a Software House based in the USA and offers Business Intelligent Solutions. She is writing articles and blog posts for the past six years.