Sandilyam's emphasis on traceability and barcode yields results

Aditya Ghosalkar (AG): The landscape of barcodes has transitioned from identification to traceability. Your view?
Shivashankar Nagarajan (SN): Today, the supply chain scenario is an amalgamation of multiple factors that have contributed over the decade. Rapid evolution in mobile computing, massive expansion in communication networks, unified taxation, improved logistics, micro- and macro-level warehousing, cashless payment systems, and the explosion in eCommerce adoption, apart from innovation in packaging and printing, have all played a vital role.

AG: How have brand owners responded?
SN: Brand owners are well positioned. They are eager to tap into the benefits of identification, track product movement and leverage market intelligence. The reason is, track and trace is much more easily realisable in the current Indian context.

AG: Why so? What is the key enabler?
SN: As a key enabler, the barcode would remain the most inexpensive information layer sitting on the packaging in its journey from origin to consumption. Over four decades old, the barcode technology started off to address simple goals of identification. Today, it facilitates complex needs of both manufacturer and the consumer.

AG: What is the reason for its success?
SN: It practically costs next to nothing to get a barcode onto the product packaging. It is part of the artwork or label. This innocuous but iconic symbol has been playing a crucial role in triggering supply chain automation. The consumer wants to be better informed, while the manufacturer is keen to know where he stands and what the market responses are.

AG: In what way?
SN: There is an explosion in usage of barcodes across segments as well as levels of packaging as they remain the most viable and legacy-friendly technology for any business to adopt. Today, we are at the cusp of many more advancements and innovation in traceability. This is due to the adoption of 2D matrix codes. Also, the power of information dissemination that it can provide to varied user segments.

AG. Your ultimate mantra?
SN: My mantra is: Collaborative, standardised, scaleable. These would be the ingredients for any supply chain network to be effective and sustainable. Therefore adoption of the well-defined global standards as per GS1 combined with relevant industry standards, play an important role.

AG: Manufacturers and service providers are well informed and are driving this adoption in their own interest and the interest of the market requirements. Would you agree?
SN: Hence, we see a pull toward standards adoption rather than a push, which was the case earlier. Presently, we see more mature supply chain operations defined by these global standards within healthcare, retail, logistics, warehousing, and some engineering segments. 

AG: What should one keep an eye for?
SN: On the basics of the code-marking and scanning performance so that there would be no data collection issues as the product moves along in its journey. After all, the very purpose of the printed linear and matrix codes are to enable supply chain automation. One really does not want to jeopardise the supply chain processes and vital data collection caused by non-scanning codes.

AG: How do you ensure compliance with industry standards regarding traceability? 
SN: This recognition of the importance of code quality cannot be overemphasised. Forming the nuts and bolts of the network, having properly scannable codes that convey and represent data in the correct format is vital. Its importance has been long established and well defined under various ISO/IEC standards, also elaborated upon within the GS1 General Specifications.

AG: Can you elaborate?
SN: Starting from the ANSI to the CEN and now to the ISO/IEC standards, we have witnessed the growing ability to measure and grade codes that are appropriate for the application covering both linear and matrix 2D codes. These ensure efficiency across any supply chain both domestic and export.

AG: So having scannable codes in conformance to the specifications are essential?
SN: Yes, and the sooner a user and manufacturer recognises this, the more he benefits, and smoothes out the entire operation for himself and his trading partners. All levels of packaging should meet these quality requirements that encompass aspects of design, encodation, and print quality. Hence these global standards are time tested to present a very objective and clear information for users to use, and therefore optimise efficiency in the supply chain processes.

AG: Your view on: “Some track and trace systems focus only on the outbound side of the supply chain, not acknowledging that their inbound supply chain can leak as well.”
SN: In the journey toward a more automated supply chain, we see in India that the more visible part of it being the point-of-sale automation and localised warehouse automation. However with fast changing distribution networks as well as more standardisation in logistics, we are sure to see far superior back-end automation can be easily replicated for maximum benefit of all trading partners. 

AG: How can this be achieved?
SN: Clearly, identification and tracking can be achieved with both the inbound and the outward automation linked. This integration uses all the tools provided within the global standards. It will provide for seamless product identification, facilitating just-in-time inventory, and smoother distribution. Some stimulus from the organised retail segment in India would be needed. The manufacturers and logistics partners would take up on that. All levels of packaging and the intermediate processes of re-packaging and distribution will benefit from this, over investing in isolated pockets of automation.

AG: Some of these things are in place in the mature markets. 
SN: Oh yes. After all automation of this scale and nature will help plug-out inventory leakages, ensure reordering to the authenticated suppliers electronically, remove delays in-warding of material at warehouses and distribution centres. All of these are of substantial impact to consumers and the Indian economy.

AG: 2D codes are a visible part of life for every consumer and citizen. It begs the question of becoming the main enabler in a standardised manner. Hence QR is in vogue?
SN: Yes. This is exactly what is happening with the GS1 Digital Link. So setting the power of standardisation and structure to the QR code will unleash far-reaching benefits to identification, traceability, B2C information sharing, and authentication. The goal is to see more and more retail products scanned at the point of sale check out with 2D codes by 2027. Presently, linear codes are the most legacy friendly. It will be prevalent in organised retail too. 2D matrix codes accommodate much-more data and are more resilient to vagaries of printing and the challenges of physical space constraints. So, all-in-all it is a winning formula.

AG: How can digital tech such as blockchain or QR codes enhance transparency in packaging supply chains?
SN: Core elements of structure and trust will make this happen. The confidence to deploy on large platforms will come when business and brand owners can own the information and share data using technology enablers. For digital links and transactions, it is paramount to not try reinventing localised pockets of automation but rather adopt global standards and deploy them in the local context. This will reduce the development time drastically.

AG: What are the trends transpiring with authentication solution suppliers?
SN: Traceability is becoming an all encompassing term in both the b2b and b2c context. Various consumer responses can be built to address aspects of product use, safety, health and allergen warnings, and much more. Both business and consumers recognise the need to create their own flavours within a global platform. A confluence of various technologies like barcodes, RFID when applicable, NFC, blockchain, data encryption and more will come as good handy tools for this.