How QR code-led traceability can boost CPG supply chain security

Over 70% of leading CPG brands now integrate QR code traceability to improve security, sustainability, and consumer trust. Once limited to payments, QR codes have transformed into a digital backbone for modern supply chains. The tech started primarily as a payment method and has evolved today into an incredible base for smart and responsive supply chains. Here’s a lowdown on how QR codes are powering the next-gen supply chains in the CPG sector:

1) Enhanced Transparency: QR-led boosts transparency of the supply chains by offering real-time visibility of product movements. This enables suppliers and partners to plan for delays and bottlenecks well in advance. The information can also be used to reduce blind spots and make informed supply chain decisions to deliver superior customer value. The issues related to inventory, transportation, and even quality can also be addressed with the help of QR-code-based supply chains.

2) Anti-Counterfeiting: Phoney products are a big headache for CPG firms. These products spoil brand name and could seriously compromise the safety of consumers, too. By using QR-based supply chain solutions, firms can effectively counter this menace. Especially when it comes to categories such as baby food, pharmaceuticals, and cosmetics, fully traceable supply chains are a strong weapon against counterfeit products. Further, QR is a tamper-proof technology, which enhances the trust and transparency of customers in the brand.

3) Regulatory Compliance: QR codes can help to maintain compliance of supply chains in the CPG sector. The trail of QR codes can be stored in a central repository and can be shared with auditors and regulatory agencies. Besides, the information can also be shared across stakeholders to help partners contribute effectively in meeting set standards on quality, safety, and reliability. QR codes also allow for precise targeting of defective units in a Product Recall announced by the organisation. By identifying and recalling only those products which fail assessment criteria, CPG firms can limit damage to their brand name.

4) Ethical Sourcing: CPG firms can strengthen their sustainability credentials through QR-based supply chains. The codes can be linked to certifications of ethical sourcing and fair trade procedures. Further, the CPG firms can also use QR to inform consumers of safe disposal, recycling, and environmental protection practices. This means that QR-based supply chains can help in combating climate change and achieve carbon neutrality by encouraging safe and sustainable business practices.

5. Personalised Engagements: By automating loyalty points and redemption, QR-based supply chains engage with customers strongly. These codes can also be used to apprise customers on how to use products, where to grab promotional offers, and remind them of refilling/replacing products as and when required. QR-codes can thus emerge as an important customer touch point to help CPG firms keep track of the entire gamut of product-related ecosystems.

QR-led Supply Chains: Issues and Challenges

QR-led supply chains hold immense potential - there’s no two ways about it. However, it’s equally crucial that concerns of data privacy, resource constraints, and making consumers aware also need to be addressed to realise the full potential of the technology. Further, the challenges related to scaling QR-led supply chains need to be tackled in a joint, collaborative, and encompassing manner.

Conclusion

As more CPG brands digitally transform their operations, solution providers like Genefied are redefining the role of QR technology—offering traceability infrastructure that not only safeguards the supply chain but also personalizes engagement across the consumer journey.

Ayush Jhawar

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Ayush Jhawar is Founder & CEO at Genefied.