EPCIS and How It Helps in Supply Chain Risk Management
The supply chain is a complex network of manufacturers, suppliers, distributors, retailers, and customers, all interconnected through a series of transactions and logistics processes. With the increasing globalisation and complexity of supply chains, identifying and managing risks has become a critical factor for businesses to ensure continuity and protect their reputation.
Fortunately, the latest technology can help companies track products and improve visibility throughout the supply chain. One of the most promising solutions is the Electronic Product Code Information Services (EPCIS). This system allows companies to answer six crucial questions about their products: who, what, when, where, why, and how.
In this blog post, we will explore what EPCIS is, how it works, and how it helps in supply chain risk management.
What is EPCIS?
EPCIS is a standardised data exchange format that enables supply chain partners to capture and share information about products as they move from one stage of the supply chain to another. This system allows businesses to track and monitor products' movement, quality and safety across the entire supply chain.
EPCIS provides a standard way to document and share events and transactions that take place during the supply chain, such as when products are received or shipped, when they change hands or locations, or when they are returned for any reason.
Through EPCIS, businesses can create a digital trail of product movement, which can be accessed, analysed and used to identify potential supply chain risks and vulnerabilities more easily.
How does EPCIS work?
EPCIS utilises the Electronic Product Code (EPC), a unique identifier assigned to each product or batch, to create a serialised record of all events and transactions that occur during the supply chain.
Each EPC contains information about the product type, batch number, and serial number, as well as information about the product's movement and its position within the supply chain.
When an EPC is scanned or read, it triggers a data capture event, which is recorded and stored in the EPCIS repository. This data can be accessed by supply chain partners at any stage of the supply chain, allowing them to maintain real-time visibility of product movement across the network.
EPCIS relies on several technologies and standards, such as RFID (radio-frequency identification), GS1 (Global Standard One), and ONS (Object Naming Service), which enable businesses to capture and share data in a standardised and interoperable format.
The Benefits of EPCIS in Supply Chain Risk Management
EPCIS has numerous benefits for businesses looking to manage supply chain risks. Listed below are four significant advantages of using EPCIS:
1. Greater Visibility and Control
EPCIS provides businesses with full visibility and control over their products throughout the supply chain. Through real-time tracking, businesses can identify and monitor potential risks, such as product theft, counterfeiting, and diversion, as well as bottlenecks, delays, and inefficiencies that can lead to supply chain disruptions.
With EPCIS, businesses can improve accountability and transparency across the supply chain, ensuring that all supply chain partners are responsible for their actions and are held accountable for any deviations from agreed-upon practices and standards.
2. Faster Response to Supply Chain Disruptions
EPCIS enables businesses to react quickly to supply chain disruptions by providing them with real-time alerts and notifications about any deviations from normal operations. With this knowledge, businesses can take immediate action to mitigate risks and prevent disruptions from cascading through the supply chain.
In addition, EPCIS helps businesses to identify the root cause of supply chain disruptions, allowing them to implement preventive measures to minimize future risks.
3. Improved Quality and Safety
EPCIS provides businesses with the ability to track and monitor products' quality and safety throughout the supply chain. By ensuring that products meet quality and safety standards at each stage of the supply chain, businesses can reduce the risk of contaminated or defective products reaching consumers, resulting in potential recalls or lawsuits.
In addition, EPCIS enables businesses to trace the origin of products and identify their source, allowing them to comply with regulatory requirements, such as the FDA’s Food Safety Modernization Act (FSMA), which mandates that food and beverage companies maintain complete supply chain transparency.
4. Enhanced Collaborative Relationships
EPCIS promotes collaborative relationships among supply chain partners by providing them with a standardised way to exchange data and share insights. By facilitating communication and collaboration between businesses, EPCIS enables them to work together to identify and resolve supply chain risks, improving overall supply chain performance.
Through EPCIS, businesses can establish trust, accountability, and transparency throughout the supply chain network, resulting in better communication, fewer disputes, and improved relationships.
Conclusion
EPCIS is a powerful tool for supply chain risk management that enables businesses to identify and monitor potential risks, respond to disruptions, ensure product quality and safety, and enhance collaborative relationships among their supply chain partners.
By utilising EPCIS, businesses can create a digital trail of product movement, which can be accessed and analysed to identify and mitigate supply chain risks, ultimately helping to ensure business continuity, protect their reputation, and improve overall supply chain performance.
As supply chains continue to evolve and become more complex, implementing EPCIS is becoming increasingly critical as a method of ensuring visibility and control throughout the supply chain network. By investing in EPCIS, businesses can supercharge their risk management strategies and remain competitive and resilient in the face of increasing supply chain uncertainty.