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How RFID can be Used for Traceability and Brand Protection
Jun 07, 2018

How RFID can be Used for Traceability and Brand Protection


For companies that make such products as wine, cheese and olive oil and pride themselves on their origin, traceable technology could be a key differentiator. In a saturated market, companies often need to promote their competitive advantage to capture consumers. 


But implementing RFID or other similar traceable technology is not always cost effective, as it requires the packager or manufacturer to install tags individually within the label. Adding a part to the manufacturing process may not be technically difficult, but it also adds an operating expense and layer to the supply chain.


But the olive oil case study shows that in some cases, such as when a product is sold or certified by the way they are sourced (think of wine labeling regulations), RFID tags are worth the cost. The consumer whose skepticism impacts their buying decision may take the extra step to verify sourcing.


Most importantly though, early adoption of this technology could help protect brands in case a competitor scandal breaks. The olive oil companies may have implemented the technology as a reaction to a sourcing scandal, but imagine the market share a brand may have gained (or not lost) if they had marketed an easy way to verify the source. 


Brand protection is not just important to high-end food products. If anything, being able to provide consumers a sourcing guarantee at moment's notice would provide a similar guarantee to buyers downstream.





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