Traceability Technology Adoption in Supply Chain Networks
The era of traditional barcodes is ending, and new regulations are reshaping supply chain transparency. Businesses that fail to adapt may face compliance risks and potential operational disruptions.
Three major forces are driving this traceability solutions transformation:
- Traceability solution Digital Product Passport (DPP):A new standard that provides product-level transparency, ensuring traceability throughout the supply chain.
- Sunrise 2027:A global mandate transitioning from traditional 1D barcodes to 2D codes, enhancing data accessibility.
- EU regulation 1169/2011:A regulation that mandates digital labelling for food and consumer goods, improving ingredient and allergen transparency.
Companies must prepare now to integrate digital traceability solutions into their operations to remain competitive and compliant.
2024-2025: The Calm Before the Storm
The years 2024 and 2025 represent a critical preparation phase for the future of traceability. While major regulatory requirements are still being finalized, companies are already facing the need to rethink how product information is collected, managed, and shared across supply chains.
The Digital Product Passport is becoming one of the main drivers of this transformation, pushing organizations to build the data structures and digital infrastructures needed to manage product-level information. At the same time, the transition toward Sunrise 2027 is accelerating, with retailers and manufacturers testing 2D codes as a new standard for product identification and transparency.
In parallel, digital solutions are reshaping how consumers access information, particularly in sectors such as food and packaging, where QR codes are increasingly used to provide greater visibility into ingredients, allergens, and product characteristics.
This preparation phase is also creating a growing gap between early adopters and companies that have yet to act. While leading organizations are already investing in traceability strategies and pilot projects, businesses that delay their efforts may find it increasingly difficult to adapt as new standards become established.
2026: The Point of No Return
By 2026, traceability will move from preparation to implementation, as companies face increasing pressure to comply with new regulatory requirements and digital standards. This year will represent a turning point, with organizations required to accelerate the integration of new labelling, data management, and tracking systems across their operations.
The Digital Product Passport will begin its transition from concept to reality, with key industries such as electronics and textiles among the first sectors expected to adopt product-level digital information systems. At the same time, the adoption of smart labels and 2D codes will gain momentum, as retailers and manufacturers introduce new identification methods to improve product transparency and prepare for the gradual transition away from traditional barcodes.
In the food sector, digital traceability solutions will continue to expand, enabling greater access to product information and supporting more transparent communication around ingredients, allergens, and product characteristics.
However, this transition will also expose significant operational challenges. Companies will need to upgrade their ERP systems, data infrastructures, and supply chain processes to meet new traceability requirements. Organizations that fail to prepare risk facing higher costs, implementation delays, and increasing difficulties in adapting to the new digital landscape.
2027: The Year of the Big Switch
January 1, 2027, represents a major milestone in the evolution of product identification and traceability, as the retail sector moves toward the widespread adoption of 2D codes. This transition will reshape how businesses manage product information, interact with supply chain partners, and provide transparency to consumers.
With Sunrise 2027, 2D codes will become increasingly central to retail operations, enabling companies to connect physical products with richer digital information. Organizations that have already prepared for this transition will be better positioned to collaborate with retailers and distributors, while late adopters may face operational challenges in adapting to the new standards.
At the same time, the Digital Product Passport will continue to expand beyond the first sectors involved, extending digital product information requirements to additional industries and strengthening transparency across global supply chains.
As product identification becomes increasingly digital, traditional labelling models will continue to evolve. Smart labels and connected product information systems will become essential tools for businesses looking to meet new expectations around traceability, compliance, and consumer engagement.
2028-2030: The Future of Traceability
The transformation of traceability will continue beyond 2027, moving from regulatory adaptation to a fully integrated business capability. As digital standards mature and new sustainability requirements emerge, companies will need to continuously evolve their data strategies, technologies, and supply chain processes to remain compliant and competitive.
The Digital Product Passport will progressively become a standard element of supply chain management, enabling organizations to improve product transparency, support circular economy initiatives, and enhance the tracking of sustainability-related information throughout a product’s lifecycle.
At the same time, companies operating across multiple markets will face increasing regulatory complexity, requiring flexible traceability systems capable of adapting to different regional requirements and standards.
Sustainability will become an even stronger driver of traceability adoption, with stricter expectations around carbon footprint monitoring, recycling, and circularity. Businesses that successfully integrate traceability into their operations will be better positioned to meet regulatory demands while creating greater value through transparency, efficiency, and responsible resource management.
Traceability and Tracking Final Thought: Adapt or Fall Behind
The traceability revolution is already happening, waiting any longer can be counterproductive. Businesses must proactively invest in:
- Digital transformation initiatives
- Compliance solutions
- Logistics tracking solutions
- Upgraded labelling and supply chain systems
The future supply chain will be transparent, digital, and highly regulated. Businesses need to prepare now for the rapid transformation of labelling, serialization, and compliance.
The question is: are you ready to embrace this new reality?
Traceability Solution: Next Steps
Understanding when traceability became essential is just part of the equation.
But how can businesses prepare for upcoming regulatory changes and ensure compliance with industry standards?
