From code to consumer – a deep dive into Track & Trace
Table of Contents
Track & Trace systems are being used in an increasing number of industries to create transparency, security and traceability throughout the entire production and distribution chain. In the tobacco industry, traceability is a legal requirement within the EU, but the technology is also being used and developed for other product categories where product and delivery safety are crucial. The food industry is a clear example where Track & Trace plays a crucial role. By being able to follow raw materials and ingredients from origin to finished product, companies can act quickly in the event of recalls, ensure that cold chains are kept intact and counteract fraud or mislabelling. This creates security for both manufacturers and consumers.
The pharmaceutical industry is also heavily dependent on traceability. Here, Track & Trace is often required by law to prevent counterfeiting and ensure patient safety. Each pharmaceutical package is given a unique serial number that makes it possible to track it throughout the entire distribution chain. Similar systems are used for medical devices, where traceability is important for quality, documentation and correct use.
Track & Trace – a tool for control
Track & Trace means that each product is assigned a unique identity – usually in the form of a DataMatrix code or QR code – which acts as the product’s digital fingerprint. This code is linked to extensive information, such as production date, batch number, manufacturing line and sometimes also ingredient or component data. As the product moves through production, packaging, storage, transport and finally out to sale, each step is automatically recorded in a digital system. The result is an unbroken chain of data that follows the product from start to finish and that cannot be manipulated afterwards.
The purpose of this is multifaceted. Firstly, it creates full traceability, allowing companies and authorities to see exactly where a product is located or where it comes from. This helps to combat illegal trade and piracy, as each code is unique and all movements in the system must be logged. At the same time, Track & Trace provides a powerful basis for quality control: if a deviation is detected in production or a customer reports a defect, the company can quickly identify exactly which batch is affected and whether the problem also affects other products.
In summary, the goal is to:
- ensure traceability,
- prevent illegal trade,
- enable more effective quality control,
- facilitate recalls and regulatory inspections.
Within the EU, there are also legal requirements for certain product categories, with the tobacco industry being a clear example. Manufacturers and distributors of tobacco products must report every relevant event – from production to sale – to a central Track & Trace system monitored by EU authorities. This system ensures that the entire supply chain is transparent, and that every movement of the product can be tracked and verified.
A practical example – snus cans and similar products
For products such as snus cans, each unit receives a unique identification label. This contains, for example:
- Production date
- Batch number
- Production line
- A unique ID number linked to that particular box
The code is often placed on the bottom of the can and is automatically read by cameras or scanning systems in production.
Tracking through different levels
Track & Trace not only covers individual products but also how they are aggregated. The system documents which packaging the products end up in and how these packagings in turn are included in larger units.
Example:
- Can level – each can gets a unique code
- Bundle (e.g. 10-pack) – all cans are digitally linked to the bundle's code
- Cardboard (master case) – multiple bundles are linked to one carton code
- Pall – cartons are registered at pallet level
Each level can be verified automatically. If a can is misplaced in a bundle or if a code cannot be read, the process is stopped to ensure data quality and traceability.
How a Track & Trace flow works
A Track & Trace flow consists of several steps that together create an unbroken chain of data, from the start of a production order to the product leaving the factory. Below is a description of what a typical flow might look like.
1. Initiation into the production system
The production order starts a new Track & Trace flow, where every upcoming event is digitally recorded. This order contains all the basic information needed to start a Track & Trace flow: product type, batch number, planned quantity, production line and any specific requirements. When the order is activated, the information is passed on to the Track & Trace system, which prepares code generation and all necessary data collection. This way, the system knows exactly what is to be produced and how the information is to be structured before production starts.
2. Labelling and code verification
When products are manufactured, they are marked with unique codes – such as DataMatrix or QR – that are generated in real time or retrieved from a central code pool. Immediately after marking, cameras read each code at high speed. The system checks that:
- the code is unique,
- the code is printed correctly
- the code is fully readable
If a code does not meet the quality requirements, the product is automatically sorted out or flagged for manual inspection. This step is crucial to avoid incorrect or duplicate codes, as the entire Track & Trace chain relies on each unit being uniquely identified.
3. Sequencing
As the products move through the line, the Track & Trace system keeps track of their sequence and how they are grouped. Sequencing means that the system documents exactly which product arrives when and how several products form a larger unit, such as a bundle, a multipack or a tray. If the products do not arrive in the correct order – for example, due to a stoppage in the machine line or a misfeed – the system reacts immediately. This makes it possible to ensure that packaging units are always built correctly and that each product ends up in the correct group without gaps or reversals.
4. Aggregation
Once products have been grouped, the next level of packaging also gets its own unique code. This can be a code on a bundle, a carton or a pallet. Aggregation means that the system digitally connects all the included products with the packaging level above. In this way, a hierarchical structure is created: a pallet contains certain cartons, which in turn contain certain products, which in turn contain specific components. This information is then sent to internal traceability systems or, if required by law, to government portals. Aggregation makes it possible to track an entire pallet or break it down into individual products if necessary.
5. Closed information flow
A modern Track & Trace system is built as a closed and tamper-proof ecosystem. This means that the data flow is strictly controlled and cannot be changed, deleted or influenced by production operators. Code lists are locked when a production starts, and all events – from marking to aggregation – are logged in correct and chronological order. This data integrity is central to creating a system that is reliable and approved during audits, government controls and external reviews. The result is a secure chain where products can be followed step by step, without the risk of information being manipulated or lost.
Logistics and distribution
As packaging leaves the factory, the Track & Trace system continues to play a central role in the logistics chain. Every time a pallet, carton or bundle passes an unloading point, its code is scanned to document:
- time of unloading
- destination
- which transport takes over responsibility
This information is automatically recorded and provides a clear timeline of when products leave production and begin their journey through the supply chain, allowing both manufacturers and distributors to quickly see where a shipment is and which units are included in it.
During transport, tracking can be supplemented with additional event recordings, for example when the goods are transshipped, intermediately stored or arrive at a regional warehouse. Some operators also use GPS or IoT-based monitoring to link transport information to the Track & Trace system, thereby creating even greater transparency. This is particularly valuable for products where temperature, travel time or safety requirements are critical factors.
When the shipment reaches a wholesaler or store, the codes are scanned again to confirm receipt and to validate that the correct products have reached the correct destination. The system can then automatically update the status of each packaging level, from individual boxes or products to entire pallets. This continuous information update makes it possible to track products throughout the chain and quickly identify any discrepancies, such as late deliveries, missing units or incorrect destinations.
By integrating the logistics and distribution flow into the same traceability system as production, a complete picture of each product's journey from manufacturing to store shelf is created. This not only increases efficiency, but also safety and reliability throughout the supply chain.
Sales and aftermarket
Once the product reaches the store shelf, it is usually the standard EAN code that is scanned at the checkout at the point of sale. This code is mainly used for pricing and inventory reconciliation and is in many cases not directly linked to the more detailed Track & Trace system. Despite this, Track & Trace plays a crucial role if something needs to be investigated afterwards. Since each product or packaging level has a unique identity registered throughout the production and distribution chain, it is possible to quickly trace a specific batch or individual unit back to its origin.
For example, in the event of a recall or quality control, the system can show exactly where the product was manufactured, which batches are affected, and which stores received the goods. If a defect is discovered in production – perhaps a deviation in raw materials, a machine malfunction, or a quality defect – the company can quickly analyze whether other products manufactured at the same time may be affected. This makes it possible to carry out targeted recalls instead of having to unnecessarily recall entire product lines or large quantities of goods.
In addition, Track & Trace makes the work easier for both authorities and manufacturers, as all the necessary documentation is collected in a digital, tamper-proof system. It becomes easy to prove that regulations have been followed, that product flows can be shown in detail and that consumers can be correctly informed about any problems. In the aftermarket, this contributes to higher safety, faster reaction times and a more responsible approach to product quality.
Future traceability requirements
Track & Trace legislation is developing rapidly, and it is clear that traceability requirements will cover more and more product categories in the future. The driving forces behind this development are several: increased global trade, greater focus on consumer safety, growing problems with counterfeiting and a stronger emphasis on sustainability and responsibility in supply chains. Authorities around the world see traceability as an effective way to gain better control over goods flows, combat illegal trade and ensure that products meet applicable regulations and quality requirements.
Track & Trace has long been an established part of the legislation in the tobacco industry, and there is every indication that similar requirements will also be introduced for modern oral products and other related categories in the snus industry. This follows a broader trend where products that previously lacked detailed traceability are now expected to be able to be followed throughout their entire life cycle – from raw materials and production to distribution, sales and recycling. Similar systems are being discussed or already being introduced in areas such as pharmaceuticals, food, electronics, cosmetics and chemicals.
The technology behind Track & Trace is fundamentally scalable and flexible, which means that existing systems can be relatively easily adapted to new legal requirements and product groups. This means that many companies are already choosing to implement traceability solutions even when it is not yet a requirement, in order to be prepared for future regulations. At the same time, this provides the opportunity to benefit from the internal benefits that traceability brings, such as more efficient quality work, better data collection and a more transparent supply chain.
In summary, it can be said that Track & Trace will most likely become a natural part of many more industries – and a new standard for how products are managed and controlled throughout their entire life cycle.
Fully integrated traceability with Logimark
For companies looking to implement a reliable and scalable Track & Trace system, it is important that both the technology and the overall system work seamlessly. This includes everything from code generation and labelling to integration with production lines, secure data management and accurate reporting to authorities.
Logimark offers a complete solution that connects the entire chain in a simple and efficient way. Through our collaboration with subcontractors, we can deliver a robust and fully integrated Track & Trace system which provides full control from the very first tagging to finished aggregation and reporting.
With our solution, you get a future-proof and flexible platform that complies with current regulations and is ready for tomorrow's demands. In short: we make it easier to create safer production, full traceability and a smoother everyday life for your entire business.
