Meaning
Asset identification methods assign a unique, sequential alphanumeric identifier to each individual unit of a product during the manufacturing process. This specific tracing system, known as serial code tracking, enables the manufacturer to follow the exact journey of a single item through the entire distribution chain. It differs from batch tracing because it monitors individual units rather than groups of products.
The system applies up to the point of retail sale, where the unit is registered to the final consumer.
Contractual Enforcement
Distributor compliance is monitored by checking the serial codes of products sold by unauthorized retailers. Through the use of serial code tracking, a manufacturer can quickly identify which wholesale partner received the specific item and subsequently allowed it to leak into unauthorized channels. This evidence allows the brand to enforce contractual penalties or terminate the distribution agreement.
It provides a solid basis for legal action.
Logistical Execution
Digital scanning at every transit point ensures that the location of each serialized item is recorded. When a distributor ships an order, the serial numbers must be scanned and uploaded to the central database. This tracking ensures complete visibility.
Supply Verification
Product authenticity is easily verified by scanning the serial code during service or return requests. This scan protects the manufacturer from honoring warranties on counterfeit goods.
