How does track-and-trace labeling work?

Track-and-trace labelling assigns a unique identifier, typically a serialised QR code, 2D barcode, or alphanumeric number, to each individual label or unit, which is then recorded at each stage of the supply chain, allowing that specific unit to be traced from production through distribution to the point of sale or consumer scan.

The process begins with variable data printing, where each label is printed with a distinct code rather than an identical batch code shared across the whole run. As the product moves through manufacturing, packing, distribution, and retail, each unique code can be scanned and logged at defined checkpoints, building a digital record of the product’s journey. This allows a brand to identify exactly where a specific unit entered, or diverted from, the intended distribution channel.

At the consumer end, a scan-to-verify portal linked to a unique code can help confirm authenticity and can flag unusual scan patterns that may indicate copied codes. In regulated pharmaceutical exports, track-and-trace requirements can also be tied to current DGFT provisions for export drug formulations and GS1-based identifiers, where applicable. The exact packaging level, identifier, and data-reporting requirements should be checked against the current rules for the product and destination market.