The Tight Connection Between Cosmetics
Safety and Track And Trace

With the global cosmetics market expected to be worth $758.4 billion by 2025, the industry is on the road to unprecedented growth and success.

But lack of regulation, poor ingredient quality, the rise of luxury brands, and the constant challenge of product piracy and counterfeiting plague the sector. Sales or brand reputation is continuously at stake and there is this high potential damage to consumers as well.

The only way the industry can ensure high-quality, safe ingredients, and original products reach consumers is by embracing modern track and trace solutions.

The Indian cosmetics industry, like the pharmaceutical industry, is subject to some of the world’s most stringent regulations. Several requirements have been laid, for instance, by the Cosmetic Rules, 2020, which state

• Products that need to be imported to India need to be registered by the Central Licensing Authority
• Licenses granted before the notification under the Drugs and Cosmetics Rules,1945 will be valid only until the expiry date or time period of no later than 18 months from the date of the notification of these rules
• An application for registration of a cosmetic product intended to be imported into India shall be made either by the manufacturer itself or by its authorized agent through a government-approved online portal, etc.
• Any new cosmetic product that contains an ingredient that has not been used anywhere in the world needs to first be approved by the authority for testing and analysis
• Cosmetic products which are prohibited in the country of origin, which have been in use before date less than six months from the date of import, those that have been tested on animals, and those that contain hexachlorophene will not be allowed to be imported to India
• Companies looking to manufacture, sell, or distribute cosmetics in India need to affirm compliance with good manufacturing practices and a large set of other guidelines

Non-compliant products that may affect the health of the consumer or may have a negative impact need to be withdrawn from the market by the manufacturer

As cosmetic manufacturers look to comply with the latest regulations, implementing a modern and interoperable track and trace system can aid in improving the detection and removal of potentially dangerous materials from the supply chain, while also determining whether a product is illegitimate. The right track and trace systems can enable cosmetic producers to block revenue losses and reduce the risk of counterfeit or recalled products from reaching consumers.

When implemented correctly, these systems can help

• Protect the brand
• Boost profits
• Identify product distribution in unauthorized channels
• Prevent fraud and counterfeiting
• Improv preparedness in the event of recalls.

At the same time, they can establish a smoother supply chain, minimize unnecessary costs, and reduce exposure to liability and risk. Brand protection

As the number and severity of industry legislation and regulations grow, the cosmetics industry needs to prevent counterfeit and illegally imported or stolen drug products from entering the supply chain. But counterfeiting is not the only challenge that needs to be overcome; product recalls, poor inventory, product-related allergies, etc. also need to be effectively dealt with to protect the brand image as well as consumer health and well-being.

The right track and trace solutions can help:

• Determine the identity (and origin) of products: One of the biggest advantages track and trace solutions offer to the cosmetic industry is their ability to determine the identity and origin of products across the supply chain. Verifying the product as it passes through the lifecycle enables real-time access to critical product data. It also enables instant communication between manufacturers and consumers to exchange additional information in case of suspected counterfeiting.
• Ensure efficient flow of information: Track and trace solutions pave the way for identities to be created for every product that includes manufacturer data, production details, expiry information, and other variable data – all embedded in a unique code. Since codes for all relevant products can be viewed via a central database, it helps in efficient storage of this data and other product information and facilitates efficient information flow between trade partners.
• Enable protection via serialization: A great way for the cosmetics industry to eliminate the risk of counterfeiting is through serialization. Modern track and trace solutions trace a product as they move across the supply chain while constantly linking unique serial numbers, codes, and other product-related information in a shared database. This data can easily be viewed and referred to, allowing every stakeholder to verify the authenticity of the product, and get insight into every product entry along the distribution chain while getting rid of all non-compliant ones from the line.
• Provide real-time insight into the supply chain: Track and trace solutions also make it possible to uniquely identify, capture, and share important information about exported consignments with regulators across the world. By helping create a digital footprint from the component level, these systems help in improving production plans and also accelerate delivery. Such a footprint makes it easy to meet strict quality and compliance standards while efficiently mapping products with authentication and verification portals to increase transparency and tackle counterfeits.
• Meet on-time delivery requirements: Having a track and trace solution also helps in ensuring on-time dispatch of cosmetic products. Modern solutions keep track of every inward, outward, and dispatch movement. With this, they help streamline the putaway, order picking, and cubing processes while optimizing inventory, increasing efficiency, and reducing errors as well as wastage of expired products. With the right solution in place, you can also minimize bottlenecks at yards, docking stations, and gates. It can help you enable faster delivery and order fulfillment and improve driver turnaround time for faster transit.

The pressure on the cosmetics sector to comply with a sundry list of existing and evolving regulations – without putting productivity or efficiency at stake – is immense. But efficiently managing product recalls, curbing counterfeits, and achieving timely dispatch by maintaining visibility and control over supply chain operations isn’t easy – unless you invest in a modern track and trace system.

The right system in place can not only enable traceability across every phase of the supply chain network; it can also detect contaminated products, identify the root cause of issues, and prevent future production and consumption while also moving them out of the distribution chain to minimize loss and disruption.