Traceability Solutions Come of Age: A Journey Through Time and Technology

Traceability is far from a new concept. In the 1930s, it was primarily used to certify the origin of premium goods, such as French champagne. Today, it is more relevant than ever.

Technology that enables traceability has evolved significantly from these early beginnings. Over the past three decades, regulated industries such as pharmaceuticals and tobacco have established technical standards. At the same time, food safety issues, including Asian bird flu, have emphasized the importance of supply chain transparency. Together, these developments have transformed traceability systems from simple verification tools into sophisticated platforms that use unique identifiers (UIDs) and supply chain event data to safeguard product quality and security.

What has driven the transformation of traceability? The journey towards digital systems.

Traceability technology has undergone a profound transformation throughout the last century. In the 1930s, certificates verified the origins of luxury products before simple labels emerged. At the time, a physical token was considered sufficient to track the movement of goods. Over time, labels evolved from basic one-dimensional codes to machine-readable formats that integrate seamlessly with digital systems.

In recent decades, regulation has played a pivotal role in driving technological advancement. Today’s sophisticated solutions include unique identifiers, authenticators, and mobile verification. But what caused this dramatic shift? As global trade expanded and supply chains became increasingly complex, counterfeit activity and trade diversion surged. To combat this illicit activity, governments enacted legislation to regulate markets, including the Framework Convention on Tobacco Control (FCTC), led by the World Health Organization, and the European Union’s Falsified Medicines Directive (FMD). These regulations transformed traceability standards worldwide.

How has regulation propelled traceability standards? The need for item-level visibility.

These landmark regulations stood out because they required complete item-level visibility. The FCTC and FMD mandated unique identifiers that enable traceability across global supply chains. For the first time, when a UID was assigned to an individual product, stakeholders could trace its entire lifecycle from the point of manufacture to the point of sale. This marked the beginning of true item-level visibility.

The impact extended beyond individual units. Through aggregation and disaggregation of UIDs, it became possible to track entire shipments across supply chains. The adoption of machine-readable codes carrying UIDs further advanced capabilities, ensuring that each product could be accurately identified and essential metadata captured throughout the lifecycle. As a result, supply chain insights became significantly richer.

A total of 183 countries have adopted the FCTC treaty, which mandates the use of UIDs to trace tobacco products.

How has technology evolved to enhance security? From digitization to authentication.

Unique identifiers are an effective traceability solution, but serialized codes can be replicated without some form of security. This raises a critical question. How can brands ensure a UID is genuine and assigned to only one product?

The FCTC emphasized the importance of an authentication device, often a hologram, to accompany the UID and protect the 2D data matrix. This helps ensure that the serialized code remains unique and tied to a specific item.

By combining UIDs with holograms or other optical security devices, brands can achieve certified item-level traceability and accurately identify authentic products. Technology has evolved even further as advances in mobile devices have made it practical to verify and report UIDs from virtually any location.

How are traceability solutions changing for brands? Adapting to new market demands.

Although regulated markets established the foundation for modern traceability standards, many industries can benefit from similar strategies. For brands across multiple sectors, adopting traceability solutions can support goals such as reducing channel diversion, complying with sustainability and responsible sourcing policies, and preparing for new regulations like Digital Product Passports (DPPs). Traceability can also reveal channel behavior, highlight operational inefficiencies, strengthen stock control, and identify potential counterfeit hotspots. UIDs can even support direct-to-consumer engagement programs.

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By scanning a QR code or other identifier, consumers can authenticate and register products, access exclusive content, or participate in promotions. These scans unlock traceability data, extending visibility to the point of use. This allows brands to understand how and where their products are purchased, resold, or interacted with. Traceability is also becoming central to circularity initiatives, which give products a second life and extend the brand experience to broader audiences. With full visibility across products, supply chains, and distribution networks, new opportunities continue to emerge.

Traceability is essential for sustainability because supply chain emissions typically represent more than 70 percent of a company’s carbon footprint.

The future of traceability

Traceability technology has been shaped by continuous innovation. Regulatory compliance has often been the driving force behind these advancements. Much has changed from the certificates of nearly a century ago to the sophisticated digital systems used today. As technology has evolved, so have industry needs. Although regulated markets established the early standards, brands across many categories are now recognizing the value of gaining total supply chain control. This includes improving operational intelligence, meeting regulatory requirements, and strengthening customer relationships. Traceability is here to stay.

Ready to take action? Discover how Crane Authentication can enhance transparency and control in your supply chain.