Track and trace is the end-to-end visibility framework that assigns a unique serialized identifier—such as a 2D data matrix or RFID tag—to each saleable unit, case, or pallet. This identifier is captured at every critical tracking event (CTE) , including commissioning, packing, shipping, and dispensing, creating a digital chain of custody that satisfies mandates like the Drug Supply Chain Security Act (DSCSA) and EU Falsified Medicines Directive (FMD).
Glossary
Track and Trace

What is Track and Trace?
Track and trace is the systematic process of recording a product's unique serialized identity and its movement through the supply chain, enabling forward tracking and backward tracing for regulatory compliance.
The system operates bidirectionally: forward tracking locates a product's current position and status within the distribution network, while backward tracing reconstructs its complete provenance to identify the source of contamination or counterfeiting. Modern architectures leverage GS1 EPCIS standards and cloud-based repository models to enable interoperable data exchange between manufacturers, wholesalers, and dispensers without compromising proprietary logistics data.
Core Components of Track and Trace Systems
The foundational elements required to establish a compliant, end-to-end track and trace program, enabling the unique identification and monitoring of products across the supply chain.
Serialization & Unique Identity
The process of assigning a unique, machine-readable identifier to each saleable unit, case, or pallet. This digital birth certificate, often encoded in a GS1 2D Data Matrix barcode, contains the Global Trade Item Number (GTIN), serial number, lot, and expiration date. Serialization transforms a generic SKU into a traceable asset, forming the absolute foundation for compliance with regulations like the Drug Supply Chain Security Act (DSCSA) and the EU Falsified Medicines Directive (FMD).
Aggregation & Parent-Child Hierarchies
The logical linking of unique identifiers to define a packaging hierarchy. When a case is packed, its unique SSCC (Serial Shipping Container Code) is scanned and associated with the serial numbers of the individual units inside. This creates a parent-child relationship, allowing a warehouse operator to scan a single outer case barcode and instantly know the precise identity and history of every item contained within, without breaking the seal.
Capture & Commissioning Events
The physical act of scanning a serialized barcode at the point of production or repackaging to activate the identity in a repository. A commissioning event is the first 'birth record' for a serial number, capturing the what, when, and where of manufacturing. This requires high-speed machine vision cameras on packaging lines capable of reading 2D codes at rates exceeding 500 units per minute, with automated rejection systems for unreadable or duplicate codes.
EPCIS Repository & Event Logging
The standardized data store that records all Critical Tracking Events (CTEs) and Key Data Elements (KDEs) as a product moves. Based on the GS1 EPCIS (Electronic Product Code Information Services) standard, this repository captures the 'what, where, when, and why' of every supply chain event—from commissioning and shipping to receiving and dispensing. It serves as the single source of truth for constructing a digital pedigree.
Verification & Authentication Gateways
The point-of-dispense or point-of-use check that confirms a product's authenticity and active status. Before a pharmacist dispenses a drug or a mechanic installs a part, a barcode scan queries a national verification system (like the EMVS in Europe) or a brand owner's repository. The system responds with a binary 'verified/not verified' signal, ensuring the item is not counterfeit, expired, recalled, or previously dispensed, effectively decommissioning the serial number.
Interoperable Data Exchange
The secure, peer-to-peer sharing of serialization data between trading partners without a central database. Using GS1 Lightweight Messaging Standard for Verification of Product Identifiers, systems query authorized sources directly. This federated architecture preserves data ownership and confidentiality while enabling a brand owner to instantly respond to a verification request from a hospital on the other side of the world, closing the traceability loop.
Frequently Asked Questions
Clear, technical answers to the most common questions about serialization, regulatory compliance, and the technologies enabling end-to-end supply chain visibility.
Track and trace is the systematic process of recording a product's unique serialized identity and its movement through the supply chain, enabling forward tracking and backward tracing for regulatory compliance. Forward tracking follows a product's real-time journey from manufacturing to the end consumer, providing in-transit visibility. Backward tracing reconstructs the product's historical path to identify the origin of a defect or contamination. This dual capability relies on serialization, where each saleable unit receives a unique identifier, and data carriers like 2D barcodes or RFID tags. The system captures Critical Tracking Events (CTEs)—such as commissioning, packing, shipping, and dispensing—and exchanges Key Data Elements (KDEs) between trading partners to maintain an unbroken chain of custody.
Track and Trace vs. Related Visibility Concepts
A comparative analysis of Track and Trace against adjacent supply chain visibility concepts, clarifying the distinct scope, data granularity, and primary business objective of each capability.
| Capability | Track and Trace | Real-Time Location System (RTLS) | In-Transit Visibility (ITV) |
|---|---|---|---|
Primary Objective | Regulatory compliance and product authentication via serialized identity | Precise geographic positioning of an asset within a defined area | Continuous monitoring of shipment condition and location from origin to destination |
Data Granularity | Serial-level (unique item identity) | Asset or tag-level (pallet, container, device) | Shipment or order-level |
Temporal Resolution | Event-based (scan at critical tracking events) | Sub-second to minute-level continuous polling | Periodic updates (minutes to hours) |
Key Technology | 2D barcodes, RFID, blockchain ledger | UWB, BLE, Wi-Fi triangulation, active RFID | GPS, cellular, satellite, IoT sensor telemetry |
Condition Monitoring | |||
Custody Chain Record | |||
Regulatory Mandate | DSCSA, EU FMD, FSMA 204 | None (operational efficiency) | GDP, 21 CFR Part 11 (for pharma) |
Typical Latency | Near real-time (< 5 sec per scan) | < 1 sec | 15 sec to 15 min |
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Related Terms
Explore the interconnected technologies and regulatory frameworks that enable end-to-end product visibility, from serialization at the unit level to immutable, multi-party audit trails.
Serialization
The process of assigning a unique identifier to each saleable unit of a product, typically via a 2D Data Matrix barcode containing the Global Trade Item Number (GTIN), serial number, lot, and expiration date. This digital identity is the foundational prerequisite for track and trace, enabling pedigree verification and preventing counterfeit infiltration. Without serialization, granular traceability is impossible.
Blockchain Ledger
An immutable, distributed digital record used to create a tamper-proof, shared audit trail of all custody transfers and environmental conditions across multiple stakeholders. In track and trace, blockchain eliminates the need for a central trusted authority by providing a single source of truth that is cryptographically verifiable, preventing retroactive alteration of shipment records and enabling automated smart contract execution.
Digital Product Passport
A digital record that aggregates a product's entire lifecycle data, including its cold chain custody history, manufacturing origin, and carbon footprint, into a single, shareable, and verifiable identity. Mandated by emerging EU regulations, the passport provides end consumers and regulators with transparent access to a product's complete provenance and sustainability credentials via a simple scan.
21 CFR Part 11
The United States Food and Drug Administration (FDA) regulation that establishes the criteria for accepting electronic records and electronic signatures as equivalent to paper records. For track and trace systems, this mandates rigorous controls including secure, computer-generated audit trails, operational system checks, and authority checks to ensure that digital chain-of-custody documentation is legally defensible.
FSMA 204
The FDA's Food Traceability Rule that establishes additional recordkeeping requirements for foods on the Food Traceability List (FTL). It mandates the capture and sharing of Key Data Elements (KDEs) at specific Critical Tracking Events (CTEs)—such as harvesting, cooling, packing, and receiving—enabling rapid identification and removal of contaminated food from the supply chain to protect public health.

About the author
Prasad Kumkar
CEO & MD, Inference Systems
Prasad Kumkar is the CEO & MD of Inference Systems and writes about AI systems architecture, LLM infrastructure, model serving, evaluation, and production deployment. Over 5+ years, he has worked across computer vision models, L5 autonomous vehicle systems, and LLM research, with a focus on taking complex AI ideas into real-world engineering systems.
His work and writing cover AI systems, large language models, AI agents, multimodal systems, autonomous systems, inference optimization, RAG, evaluation, and production AI engineering.
Partnered with leading AI, data, and software stack.
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