The Potential Benefits of Supply-Chain Serialization

Sophisticated ERP systems enable companies to view the shipping locations of each wholesaler, distributors, and in some cases large resellers. Mostly the tracking of the products ends here. With unit-level, serialization companies can take full advantage of massive opportunities to boost demand and supply management, eliminate product loss, prevent counterfeiting, and improve brand protection. The ability to track down the item to unit-level results in simplified return processing and product recall management. Also helps in the management of accurate demand and provides the prospect for more advanced loyalty programs. rnTrack Product at every steprnSerialization makes it possible for each partner involved in the supply chain to track products at every step from point of production to the moment it's in the customer's hand. If the product is returned by the customer the serial number can be used on all shipping documents to deliver information on the reason and status of the return. This information can help in determining whether the product has any quality-related issues.rnEasy Product Recall rnIf a product is returned by the customer or members of the supply chain because of the quality issues, serial numbers on the product packaging are communicated to the brand vendor as the products are passed back up the supply chain. Products that aren’t serialized slow down the return process, lacking timely and proper information for consumers, supply chain personnel, and company executives. Manufactures can better identify where the faulty product was shipped and send a message to those specific locations to return or discard the product.rnEfficient Demand Management rnSerialization allows optimizing the demand management. The brand owner has the access to the accurate tracking history of the product with real-time updates for each product shipped through the supply chain. Product shortages can be detected more quickly and replacements can be shipped on time. Using the power of serialization, retailers can ensure that the right products are ordered and the demanded quantity is available for customers, rather than having a moment of bare shelves and lost sales.rnProduct Performance rnDisappointing sales in retail outlets and wholesale channels can be detected and handled quickly through serial numbers. This increased knowledge helps brand owners to provide much faster availability of vital information regarding the performance of products. This serves as a guide in taking distribution accurate distribution decisions on time. rnPrevent Counterfeiting rnTracking ability at the unit level help to prevent counterfeiting and enhance brand integrity. The consumer can validate that the purchased product is authentic. The clear supply chain helps to improve marketing strategies and the marketing team will be better equipped with up-to-date information regarding sales of their product. For example, if the supply of a product is high and sales are low the marketing team can run a special campaign to promote the product. Similarly, demand-side information will be obtained faster and allow for subtle changes to the way products are marketed. Through a serialized track and trace system changes in product designs for counterfeit products can be detected much faster.rnTargeted loyalty ProgramsrnWhen a customer purchases a product and validates it through a serial number from the company's website or store, provides the opportunity to identify loyal customers and generate a loyalty reward program that more closely aligns with that customer’s needs. Through this approach, the more relevant information can be delivered to the customer and the company can work on creating brand loyalty to increase targeted sales prospects.rnBottom Line rnThrough serialization, strategy supply chain operations have become much more efficient, and products are shipped much faster than before. Yet even with this increased efficiency and operational speed, serialization has still many unrealized benefits in the supply chain. As serialization that is more advanced and labeling systems of ERP Gold become available in lower price range, companies have the opportunity to embrace the unconventional and innovative steps in supply-chain management to create a game-changing differentiator through serialization.