Just over 3 years ago Russian President Vladimir Putin signed the Federal Law which set in motion legislation across almost all consumer product categories from dairy products all the way through to pharmaceuticals, fragrances, footwear and even bicycles. This has been a phased approach by category which started in 2019 and is set to conclude in 2024.
The objective of Russia’s national track & trace platform, known as Chestny Znak, is to protect consumers from counterfeit products and increase food safety. For each phased category there is a testing phase ahead of setting a deadline for producers & manufacturers to be compliant with Chestny Znak’s new marking and traceability requirements.
The requirements for each producer or manufacturers supply chain include:
- Marking of each individual product with a serialised 2D DataMatrix code
- The serialised cryptographic codes are provided by Chestny Znak and can be obtained via a sophisticated API with supporting information to be able to access them
- Recording and communication with Chestny Znak on unit, box, pallet, batch and order aggregation throughout the supply chain
- Recording and communication with Chestny Znak on chain of custody including the retailer and point of sale
- Sophisticated processes for returns management
Although obtaining serialised cryptographic codes and printing these on products can be quite straightforward where the deeper complexity becomes apparent is at the box, pallet and order aggregation requirements and having a system that validates every step of the supply chain including eliminating any room for human error as the Chestny Znak system has a zero tolerance for error. This saves downtime and order rejections for your products going to retailers which is hugely costly. This coupled with the ongoing updates and changes to the Chestny Znak system means partnering with a Track and Trace Platform specialist who is already built out the integrations & process validations with Chestny Znak and can monitor & adopt any ongoing changes to the system without any disruption to your supply chain is critical.
The key stakeholders that should be looking at this in detail include:
- Farmers/Agricultural
- Manufacturers
- Importers
- Wholesalers
- Retailers
The consequences for noncompliance are considerable. We have already seen orders being rejected from retailers and sent back to the manufacturer for brands that do not comply.
In conclusion the Chestny ZNAK regulations are strict and complex, so require a keen focus for manufactures and related stakeholders to prepare effectively to adapt to changes to ensure your operations aren’t disrupted.
Beyond preparing your internal systems, the key to Chestny ZNAK compliance is to partner with a Track and Trace aggregator that:
- Understands the complexities of the Russian regulations
- Can adapt quickly to ongoing changes
- Is a certified partner of Chestny Znak
- Has a local Russian team
- Has many live projects already up and running in market
Brands like Coty, Estee Lauder, Chanel, L’Oreal and LVMH have been successful implementing our Track and Trace platform months ahead of the Chestny Znak compliance deadlines for their category to ensure every possible scenario has been 100% tested in a live environment.
If you are producing products for the Russian market then reach out to Origins Trace to ensure you are receiving the best advice and planning to hit your categories compliance deadlines