EPCIS and the Importance of Secure Data Interchange Across the Supply Chain

In an era where supply chain disruptions are becoming more frequent – some of which are caused by political or social upheavals, while others are the result of the ongoing Covid-19 pandemic – companies need to take measures that ensure a seamless flow of goods, services, and information across the supply chain. Since the supply chain involves multiple stakeholders in various locations, the need for a transparent, secure, and efficient system of data interchange becomes critical. This is where the Electronic Product Code Information Services (EPCIS) framework comes into play.

In this blog post, we will explore the importance of EPCIS in enabling secure data interchange across the supply chain.

What is EPCIS?

Electronic Product Code Information Services (EPCIS) is a standardized framework for data communication and information exchange in the supply chain that allows organizations to track, trace and share the movement of goods and products, as well as the status of various supply chain events. Essentially, EPCIS enables organizations to collect and share granular product-level data across their supply chain partners in real-time, ensuring supply chain visibility to all stakeholders. The system uses a unique identification number, known as an Electronic Product Code (EPC), to make it easier to track and trace goods across the supply chain, including when they were manufactured, distributed, and sold.

EPCIS is a product of the GS1 standards body, which is responsible for managing global supply chain standards. GS1 leverages input from a wide range of stakeholders, including industry professionals, suppliers, and customers, to ensure that the EPCIS framework is designed to meet the specific needs of the supply chain.

How EPCIS Works

The EPCIS framework works by establishing a standardized vocabulary for describing the movement of goods and products across the supply chain. This vocabulary includes clear definitions of all relevant supply chain events, such as shipment, receipt, and stock transfer. This standardized vocabulary identifies the scope and details of each event within the supply chain.

To ensure secure data interchange, the EPCIS framework uses a defined set of data exchange protocols and APIs, making it easier for all stakeholders to exchange data and collaborate across the supply chain. This approach eliminates the need for companies to use proprietary data exchange systems, which can be costly and create silos of data.

The EPCIS framework requires companies to collect data from all parts of the supply chain, starting from the manufacturer and ending at the final consumer. Supply chain partners generate event data such as location, date, and time of the product as it moves through the supply chain. This visibility helps companies gain insights into various aspects of the supply chain, such as shipment delays, inventory management, and customer demand.

Why EPCIS is Important in the Supply Chain

EPCIS provides numerous benefits to supply chain stakeholders. These benefits can be grouped into three main categories:

Improved Traceability

With the EPCIS framework in place, companies can easily track and trace products as they move through the supply chain. By collecting granular data about products such as where they were produced, when they were transported, and who handled them during storage and transportation, companies can quickly identify the root cause of quality issues or supply chain disruptions. This approach improves picking and packing efficiency, makes product recalls faster and more accurate, and reduces inventory losses.

Enhanced Transparency

In today’s world, companies have an ethical obligation to ensure fair and unbiased business practices across the supply chain. The EPCIS framework enables greater transparency into the supply chain, making it easy for all stakeholders to understand how products move through the supply chain, identify inefficiencies, and develop new strategies to promote sustainable and ethical practices.

Better Collaboration

Collaboration is the key to achieving supply chain resilience. With the EPCIS framework in place, supply chain partners can easily and securely exchange data in real-time. This technology enables companies to optimize the movement of goods across the supply chain, coordinate production and logistics activities, and respond quickly to unplanned events such as natural disasters.

Benefits of Secure Data Interchange in the Supply Chain

The benefits of EPCIS are undeniable, and the only way to fully realize these benefits is by enabling secure data interchange throughout the supply chain. Secure data interchange is essential to maintaining the integrity and security of the data being exchanged. Here are some of the key benefits of secure data interchange in the supply chain:

Protecting Sensitive Information

Data exchanged across the supply chain can be highly sensitive or confidential in nature, such as financial information, intellectual property, or personal information. Secure data interchange protocols ensure that this information is protected and shielded from unauthorized access or exfiltration. This helps to maintain trust and confidence among all stakeholders in the supply chain.

Maintaining Data Quality

Data quality is a critical factor in supply chain decision-making. Poor quality data can lead to inefficiencies, delays, or errors. Secure data interchange protocols ensure that all data exchanged across the supply chain is accurate, complete, and timely. The framework supports data validation, verification, and cleansing functions, ensuring that the data is reliable and of high quality.

Addressing Cybersecurity Threats

Cybersecurity threats are becoming more sophisticated and advanced. Cybercriminals can exploit vulnerabilities in the supply chain to steal sensitive data, cause system disruptions or shut down supply chain operations altogether. Secure data interchange protocols leverage advanced encryption and authentication protocols, such as HTTPS, SSL, and 2FA, to safeguard data exchange against cybercriminals.

Conclusion

The EPCIS framework has proven to be an effective tool for enabling supply chain transparency, traceability, and collaboration. It has helped companies to optimize their supply chain operations, facilitate better decision-making, and enhance customer satisfaction. However, the benefits of EPCIS can only be fully realized by ensuring secure data interchange protocols throughout the supply chain.

Companies must take a proactive approach to managing their supply chain data by implementing secure data interchange protocols that protect sensitive information, maintain data quality, and address cybersecurity threats. By doing so, supply chain partners can rest assured that their data is secure, reliable, and remains within the confines of their supply chain operations.