Article

Challenges and Opportunities for electronic devices serialization

Topic: Business OpportunitiesPublished November 5, 2020
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Many electronic devices manufacturers are concerned about label design and placement to accommodate a serialized label. But for serialization there are many complex issues are at hand such as standardization, scaling information technology infrastructure, serialized inventory, data security, and agility to accommodate regulatory changes. rnWhy Serialization MattersrnThe first objective of any electronics manufacturing company is to deliver standard and reliable electronic devices to the consumers. The previous product visibility and control methods along the supply chain was based on paper or an excel sheet to manually enter and update the record of products and item. Due to counterfeiting, theft, and diversions, the old record-keeping methods are no longer effective especially now when marketplaces are expanding globally.rnSerialization refers to the assigning of a unique identification code, a serial number, or electronic product code (EPC). The serial number can be applied to each sealable unit. The units can be tracked through the entire supply chain, from manufacturing to retail distribution to final dispensation to the consumer.  Challenges for Serialization in electronic industries rnSerialization implementation goes far beyond printing numbers on the boxes. The true challenge is the ability to a couple of physical product flow with the electronic data flow. A robust IT infrastructure is required along with scanners to generate, capture, store, and share the serialized data across different departments. More complexity is added when data is nested, hierarchical, or lot based.rn1. High Volume and Complex Data Exchange rnFor a large amount of data to be shared rapidly among the trading partners the standardization of that data is important. For lot-level management and item-level traceability, the industry coalesced around the use of Electronic Product Code Information Services (EPCIS). EPCIS is a data-sharing standard that enables electronics supply chain partners to receive information about events such as purchase, shipment, return, etc. and share that information securely with their trading partners in a real-time environment. rn2. Ability to Scale Information InfrastructurernThe evolution from batch-level tracking to unit-level serialization and traceability will create massive amounts of additional data. In a serialized environment data and other transactional details related to uniquely assigned serial numbers are captured and transmitted as the item is packed, shipped, and verified. The data within item-level serialization is of a larger magnitude than the data generated for batch level tracking and distribution. Electronic manufacturers must strategically plan for the need to scale their information infrastructures to manage the exponentially growing data volume. rn3. Agility to Accommodate Regulatory ChangesrnRegulatory changes keep coming for manufacturing industries within the United States and around the world. For the implementation of product-level serialization, both regulatory bodies and relevant industries need to acquire learnings and gain experience that could lead to adjustments in the regulations. Electronic devices manufacturing industries require to build a serialization infrastructure that can be altered as needed to accommodate regulatory changes. rn4. Data SecurityrnFor the large volume of data to be transferred between supply chain partners, careful considerations are required for data security. Data must have high integrity and there is no loophole for data leakage and alteration by any unauthorized person. Data must be protected from hackers and other cybercriminals. Serialization is meant to protect and validate the product identity therefore cybercriminals could be targeting to manipulate the identity of high-value products.  Opportunities 1. Serializing electronic items is important whenever an issue with the item needs to be communicated back to the supplier. This prevents endless review of paper documents when trying to retrieve the purchase details for a device that has fault and malfunctioning issues. Serialization enables us to trace the lifecycle of the individual item and locate where and how it ultimately left the supply chain to end up in the hands of a customer. 2. For manufacturers, serialization supports the tracking of the complete production cycle. The serialized device can be located at every step of production, in stocks, and for sale to customers. The serialized systems auto-generate serial numbers that can be attached at varying stages of production and these serial numbers are part of any transaction associated with the inventory movement. 3. Since every step in the production process can be traced back to a serial/batch number, be it the machine or the team used in its production, manufacturers can frequently improve their product reliability by quickly fixing problem areas along the supply chain.

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