Counterfeiting costs global brands an estimated $4.5 trillion per year. For manufacturers and distributors, the damage is not only financial; it erodes brand trust, creates product liability risk, and in industries like pharmaceuticals and food, can directly harm consumers.
Track-and-trace technology is the most effective operational defence. It creates a verifiable digital record for every product unit from production to end customer, making it impossible for a fake to pass as genuine without detection.
What track-and-trace actually does
At its core, track-and-trace is an identity system for physical products. Each unit receives a unique digital identifier, such as a QR code, barcode, RFID tag, or serialised label, that is registered in a central database at the point of manufacture.
From there, every movement is recorded:
- Production: unit created, batch logged, quality checks passed
- Warehouse: goods received, stored, picked
- Distribution: shipped to distributor or retailer, handoffs tracked
- Retail / Point of sale: product scanned at checkout or by staff
- End customer: customer scans the code to verify authenticity
If a product arrives at any checkpoint without a matching record in the database, it is immediately flagged.
The four components of an effective system
1. Unique identifier generation
Every unit gets a non-duplicable identifier. Strong implementations use cryptographically generated codes that cannot be predicted or guessed, making it impossible to print a fake label with a valid code.
2. Chain of custody logging
Each scan or checkpoint event is written to the database with a timestamp, location, and operator record. This creates an immutable audit trail, useful for recalls, disputes, and regulatory audits.
3. Verification endpoints
Retailers and end customers need a way to verify products: a mobile app, a web portal, or a scan-at-POS workflow. The verification response should be instant, returning a green confirmation or a clear warning.
4. Alerting and reporting
When an unverified product is scanned, the brand needs to know. Real-time alerts to a brand manager, geographic heat maps of counterfeit detection incidents, and batch-level reporting are essential for taking action.
Common implementation pitfalls
Codes applied after production: the identifier must be assigned during or before manufacturing, not at the end of the line. Applying it later creates a gap that counterfeiters exploit.
No end-customer verification: a system that only tracks warehouse movements misses the final check. Consumers should be able to verify a product with a phone scan before using it.
Single-point-of-failure databases: if the verification database goes down, every legitimate scan fails. Redundant infrastructure is non-negotiable for mission-critical verification.
No onboarding for warehouse teams: the best system fails if staff do not scan consistently. Short, role-specific training and streamlined scan workflows significantly improve adoption.
Regulatory context
Several jurisdictions now mandate track-and-trace for specific categories:
- Pharmaceuticals: The EU Falsified Medicines Directive (FMD), India’s SUGAM traceability requirements, and the US Drug Supply Chain Security Act (DSCSA) all require serialised product tracking.
- Food & Beverage: FDA’s FSMA 204 rule in the US requires lot-level traceability for high-risk foods from 2026.
- Tobacco: The EU’s Track and Trace system (EU-TTT) mandates serialisation for all tobacco products.
Even where not mandated, many large retailers now require supplier track-and-trace capabilities as a condition of listing.
ScanSure: track-and-trace built for manufacturers and their distribution networks
ScanSure is KometCode’s product verification and track-and-trace platform, developed in collaboration with distribution partners. It is designed for manufacturers who need to protect their products across multi-tier distribution, not just within their own warehouse.
Key capabilities:
- Serialised QR codes generated per unit or per batch at production
- Chain of custody tracking across manufacturer, distributor, and retailer
- Consumer verification via QR scan, with no app required; works in any browser
- Counterfeit alerts sent to brand managers when an unregistered code is scanned
- Batch-level reporting for recall management and regulatory audits
- Designed for warehouse teams: the scan workflow takes under three seconds per unit
ScanSure is currently available for early access. If you are a brand or manufacturer dealing with counterfeiting, distribution disputes, or approaching a regulatory deadline, get in touch to discuss your requirements.
Is track-and-trace right for your business?
Track-and-trace makes sense if any of the following apply:
- Your products have been counterfeited or you have received complaints about fakes
- You operate a multi-tier distribution chain with limited visibility below tier 1
- You are approaching a regulatory requirement (pharmaceuticals, food, tobacco)
- A major retail partner has requested supply chain traceability documentation
- You have experienced costly product recalls due to batch identification problems
If none of these apply yet, it is still worth reviewing your supply chain risk before the first counterfeit incident forces the conversation.
For questions about track-and-trace implementation or to learn more about ScanSure, contact KometCode.