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Smart Label New Technologies and Applications
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In the past, smart tags were primarily seen as a form of technology that used RFID (Radio-Frequency Identification) tags to transmit data. However, with technological advancements, today's smart tags have evolved beyond just RFID. They now encompass a wide range of intelligent tagging solutions that can interact with both consumers and brand owners. These tags are considered "smart" because they offer enhanced communication capabilities, which are crucial for modern marketing and product management.
The core function of any tag is to convey information. Traditional labels typically provide basic details such as product name, description, ingredients, and expiration dates. Smart tags, on the other hand, go further by expanding the scope of information and adding interactive features. This article will explore some of the innovative smart label technologies developed by leading companies globally.
(I) InkSure’s Traceable Labels
Based in New York, InkSure has introduced a cutting-edge solution to verify product authenticity. Their system uses a unique optical code—referred to as a tracer—embedded within the label or packaging material. This tracer can only be detected by a specialized reader that uses a specific code combination. According to Tal Gilat, the Technical Director at InkSure, “This tracer is integrated during the production process and can be added to any material, not just labels or packaging. It's very flexible.â€
Brand owners can ensure their products are genuine by randomly scanning the tags. When a worker places the reader on a tagged item, it instantly detects the tracer and displays the result in under a second. If no tracer is found, it indicates the product may be counterfeit. This method works like a "lock and key" system, where the tracer acts as the lock and the reader as the key.
InkSure also developed a device called the Scan Sure Reader, which not only identifies tracers but also checks barcodes. It helps answer three critical questions: Is the barcode valid? Is it placed correctly? Has it been scanned before? As Gilat explains, “If a barcode isn't recognized by the Scan Sure Reader, it suggests someone has forged it, signaling a potential counterfeit.â€
InkSure’s tracking system combines traditional barcodes with its tracer technology, allowing brands to track products throughout the supply chain and ensure they reach the right destinations. This helps prevent fraud and improves transparency.
Traditionally, counterfeiters targeted high-value branded products. However, this trend has shifted. With growing demand for generic drugs and lower brand awareness among smaller pharmaceutical companies, counterfeit medicines have become a serious concern. InkSure’s technology is now widely used in sectors like pharmaceuticals, tax stamps, cigarettes, alcohol, fuel, and automotive parts.
(B) Newgistics Technologies’ Prepaid Return Label Technology
As online shopping continues to rise, so do logistics costs. For instance, shipping fees account for 40% of the USPS’s operating budget. To address this challenge, Newgistics Technologies has created an innovative smart label system designed for returns.
This smart label contains return-related data such as customer ID, order number, product serial number, and description. Consumers can generate these labels when placing an order or later through web-based tools. Kevin Brown, Marketing Head at Newgistics, states, “Once a customer initiates a return, the prepaid smart label can be used. It is attached to the package and sent to the post office along with the item.â€
Additionally, customers can request free pickup from USPS. Newgistics collects the returned items, processes them at a smart processing center, and sends the data back to the seller. This allows brands to track returns more efficiently, improving internal operations and reducing overall costs.
By integrating smart labels into the return process, Newgistics offers valuable insights to brand owners, helping them better manage their supply chains and enhance customer satisfaction.