Exploring the latest technologies enhancing digital security in the CPG sector

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Undeniably, this growth has been fuelled by the rising consumer demand for products that are safe, authentic, and readily available.

However, this rapid development of the industry has intensified some significant risks, including the threat posed by fake, diverted, and illegally refilled goods. 

Luckily, new and emerging technologies are now helping manufacturers and consumers protect themselves against counterfeit goods and make more conscious decisions.

Here is what you need to know about the role that the latest technologies are playing in securing CPGs. 

What is CPG? Let’s cover the basics

CPG stands for consumer packaged goods. These are products that have a short shelf-life and are created to be refilled or replaced frequently.

Although the list of CPGs on the market is nearly endless, some notable examples of consumer packaged goods include beauty products, beverages, fresh foods, clothing, cosmetics, fragrances, toiletries, and household cleaning products. 

You can learn more about consumer packaged goods, the CPG industry, and the differences between CPGs and fast-moving consumer goods here: authena.io

Smart packaging and supply chain management solutions for CPG security

Consumer packaged goods are created to be safe for human consumption. However, the global supply chain and distribution system is growing at an unprecedented rate.

Therefore, the volume of fake products on the market is now posing a significant threat to manufacturers and consumers alike. 

Thankfully, new supply chain technologies and smart packaging solutions are now playing a role in monitoring the quality, safety, and authenticity of CPGs.

Let’s look at how the new technological tools integrated within CPG’s packaging are changing the market. 

NFC and RFID labels

Near-Field Communication (NFC) and Radio-Frequency IDentification (RFID) technologies work similarly to each other and allow for the exchange of information between a technology-enhanced label and an enabled device (i.e.: a smartphone). 

These technologies offer a two-part benefit:

• They allow manufacturers to track products and record transactions by simply scanning a label on a product’s packaging
• They can be scanned by consumers (only NFCs), who can access all information about a product, verify its authenticity, and make more conscious buying decisions. 

NFC and RFID technologies are more efficient than QR codes in that they are harder to clone and manipulate. 

Blockchain

Blockchain technologies are revolutionizing the global supply chain by creating a much safer and more efficient framework.

Therefore, Blockchain infrastructures are digital ledgers that allow for the safe and immutable recording of transactions.

Thus, the records imprinted in the blockchain are impossible to manipulate and can contain all information related to a certain product. 

This can prevent counterfeiting by creating a verifiable trail of evidence of the product’s transactions and distribution journey. 

NFT and digital twinning

Non-Fungible Tokens and digital twins are strings of cryptographic code that exist in the metaverse. Each string of code is attached to an underlying physical product and is modified every time a transaction takes place. 

Therefore, NFTs and digital twins are much easier to track than the physical product they are attached to. Thus allowing manufacturers to level up their supply chain monitoring system.

What’s more, these technologies can deliver information about product ownership and authenticity

Tamper-evident seals

Another great innovation that is helping consumers and manufacturers protect their goods from bad actors is tamper-evident seals.

These technologies help consumers make sure that they are buying an original product that has not been manipulated (e.g. refilled).

In turn, this can protect the manufacturer from the reputation damages that fake goods can cause while also preventing public health scandals. 

Sensors to monitor location, temperature, and quality

New sensors integrated within technology-enhanced packaging solutions have been a game-changer for manufacturers and supply chain managers.

Thanks to these new sensors, it is now possible to monitor the location, temperature, and quality of a product throughout its journey from producer to consumer. 

However, some applications of this technology include the ability to identify diversion attempts as they happen and manage the internal environment of a packaged product to optimize the user experience.

For example, new smart packaging technologies can monitor the internal temperature of packaged watermelon to optimize its taste. 

Leveraging end-to-end authentication solutions to boost the security of CPGs

Individually, the tools and technologies above can play a critical role in making the CPG supply chain safer, more secure, and more efficient for both manufacturers and consumers.

But, even more importantly, supply chain managers should look into the benefits of adopting an end-to-end solution that combines several of the technological tools seen above.

These solutions can improve consumer safety, boost loyalty, and safeguard CPG companies from the financial and reputational damage that pirated goods can cause. 

Have any thoughts on this? Drop us a line below in the comments, or carry the discussion over to our Twitter or Facebook.

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Disclosure: This is a sponsored post. However, our opinions, reviews, and other editorial content are not influenced by the sponsorship and remain objective.