Sharath Muddaiah, Head of Portfolio Strategy for IoT Solutions at G+D highlights the value of smart labels and their role in supply chains
Recent years have exposed the vulnerabilities of global supply chains, from the severe disruptions of the Pandemic to geopolitical tensions like the Red Sea Attacks, and increasingly frequent extreme weather events. These challenges have underscored the fragility of supply chain networks and the urgent need for greater resilience and transparency.
According to the latest McKinsey Global Supply Chain Leader Survey, 90% of respondents faced significant supply chain disruptions in 2024. In this unpredictable landscape, organisations must prioritise real-time visibility to mitigate risks and ensure smooth delivery operations. The ability to track products seamlessly throughout their journey is no longer a luxury – it’s becoming an essential requirement. Smart labels are therefore emerging as a transformative solution, set to redefine how supply chain ecosystems operate in 2025 and beyond.
Smart labels and security
With smart labels, any package can become an IoT device. Small, credit-card-sized labels activate instantly with a peel, requiring no extra infrastructure or maintenance. Designed for simplicity and ease of use, they bring advanced security to every parcel, integrating innovative technology into everyday logistics.
In today’s fast-paced delivery landscape, the ability to track a parcel’s precise location is crucial, particularly if it doesn’t arrive as expected. As eCommerce continues to grow, so does the threat of parcel delivery fraud. In fact, the global value of eCommerce fraud is expected to soar from $44.3 billion in 2024 to $107 billion by 2029, representing an 141% increase. Non-delivery fraud – when individuals falsely claim non-receipt of goods to obtain a refund – is also increasing. Research by Cifas, the UK’s fraud prevention service, revealed that 20% of people either admitted to committing non-delivery fraud or knew someone who had.
However, what sets smart labels apart is the subtlety of their technology. Most people won’t even realise that a package contains a hidden tracker, as the label appears to be just a simple barcode or information sticker. As a result, potential fraudsters remain unaware that their actions are being monitored in real time, offering an additional layer of security.
Real-time monitoring in the food and beverage industry
According to the BSI’s Supply Chain Risk Insights Report 2024, food continues to be the commodity most at risk of theft in the global supply chain and accounts for a third of all hijacking incidents. Indeed, this year, global news headlines reported on 22 tonnes of cheese stolen from Neal’s Yard Dairy – adding to a series of food-related heists in recent years.
Yet, the capabilities of smart labels extend far beyond crime prevention – they also play a crucial role in ensuring food safety. As consumers demand greater transparency about their food and drinks, smart labels provide reliable data and alerts throughout every stage of the supply chain, from the field to packaging, all the way to the consumer’s plate.
Correct transportation at the right temperature is vital for certain foods, especially across different seasons. For instance, the requirements for transporting goods during the winter differ greatly from those in summer, requiring careful monitoring to ensure quality and timeliness. If these conditions are not met, not only does the product become unsuitable for consumption, but companies also risk missing their service-level agreements and facing a late-arrival penalty.
In recent years, QR codes on food packaging have become increasingly common, providing consumers with information about product origins. However, these codes fall short of delivering real-time, end-to-end visibility into the food and beverage supply chain – a challenge that smart labels address.
As we move toward 2025, organisations will begin to recognise that achieving real-time insights doesn’t require extensive additional infrastructure. Instead, smart labels offer a seamless solution, enabling instant access to critical data and transforming how diverse industries operate.
The critical role of shared data
A great advantage of smart labels is that they empower every participant within an ecosystem to work with a unified data set. For instance, previously, a logistics company in New Zealand might have relied on a completely different information set than a counterpart in Europe. However, with tracking devices, shared services have become a reality. Data is no longer siloed within individual companies but is generated and accessed through shared devices. This approach allows companies to pinpoint accountability for delivery issues and make informed business decisions.
Future-proofing smart labels
Looking forwards, optimising battery life is a top priority. Advancements in 5G LPWA technology will play an increasingly important role in addressing this challenge.
Furthermore, as smart labels continue to evolve, consumer expectations for intelligent devices will also grow. These expectations will likely include more sophisticated sensors for precise measurement capabilities. While there is substantial discussion around incorporating artificial intelligence, the initial focus should shift toward integrating enhanced business intelligence (BI) – offering advanced real-time updates and specific alerts, as well as enabling actionable insights without constant monitoring.
Finally, sustainability will also become a pivotal factor for smart labels and IoT devices in 2025. As smart labels advance and expand in a diverse range of sectors, reusability will become a key topic of discussion. Looking ahead, innovations in battery technology – such as movement-based charging – may emerge as novel solutions. Moreover, smart labels can deliver valuable insights, such as data on CO2 emissions from different transportation methods and routes. This functionality can empower enterprises to make more sustainable decisions, reducing CO2 emissions with every kilometre spared.
As parcels flow in and out throughout the holiday season, 2025 is shaping up to be a pivotal year for smart label technology – a year dedicated to creating a supply chain ecosystem that is more secure, safe, and sustainable.
Sharath holds a master’s degree in Telecommunication Networks, and his current role is Head of Portfolio Strategy for IoT Solutions at Giesecke+Devrient (G+D), a global SecurityTech company headquartered in Munich, Germany. His 20+ years of experience ranges from contributing to the development and deployment of GPRS since the early days when the packet-switching protocol for wireless took more than a minute to get to your email to today’s rapid integration of IoT.
Author: Sharath Muddaiah, Head of Portfolio Strategy for IoT Solutions at G+D
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