Note: On February 29, 2020, Russia changed key deadlines for footwear. Read about the new dates here.

March is a big month for footwear companies doing business in Russia. The next major deadline for Russia’s National Track and Trace Digital System, known as Chestny ZNAK, is March 1. If you’re selling footwear in Russia, here’s everything you need to know about the regulations.

Some background on Chestny ZNAK

Russia’s Federal Law No. 425-FZ mandates that companies must connect and comply with Chestny ZNAK, which is operated by the Center for Research in Perspective Technologies (CRPT). Ratified on December 29, 2017, the complex regulations will affect virtually every industry, from footwear and pharmaceuticals to tires and tobacco.

The goal of Chestny ZNAK is to protect consumers by keeping fake and substandard products out of the market. Hallmarks include 2D barcodes, serialization, crypto codes, and secure reporting and records management. Companies that are not fully compliant risk exclusion from lucrative Russian markets. Deadlines vary by industry, but Russia aims to have the total supply chain transformation completed by 2024.

Let’s do a quick overview of Chestny ZNAK for the footwear industry, what’s happened so far in 2020, and what’s in store for March.

Chestny ZNAK 101 for footwear

Manufacturers, importers, distributors, wholesalers, and retailers had to begin labeling their products with 2D Data Matrix codes beginning July 1, 2019. The CRPT provides the codes to these supply chain stakeholders, who must be registered in the Chestny ZNAK system.

Each code has an ID code that determines a product’s position in the track and trace system and in the unified catalogue of goods. A code must contain ten data points, including a Global Trade Item Number (GTIN), a tax identification number, the brand name, and the materials used to make the shoes.

Each Data Matrix code must have a verification code — a crypto “tail” or crypto code. The CRPT also generates the crypto codes, which are essentially a string of unique numbers and letters. We’ve been following news about the Chestny ZNAK crypto codes. Check out our last major update here. For recent news about other regulations and industries, see our story here.

Footwear and Chestny ZNAK: What’s happened so far in 2020 and what’s coming in March

As of February 1, 2020, actors in the footwear supply chain were expected to have obtained all the equipment needed to receive, print, affix, and test the 2D Data Matrix codes and crypto codes. This includes a special device called an issue registrar, through which the CRPT sends the codes. Other gear includes barcode scanners, printers, and cash registers. Manufacturers, importers, distributors, wholesalers, and retailers were also expected to have mastered the new system.

March 1 is the next big deadline for the footwear industry. Here are the key points:

• Production and import of unlabeled shoes is prohibited.
• Wholesale and retail sale of unlabeled footwear is prohibited.
• Transfer of information about production, importation, and wholesale and retail sales to Chestny ZNAK becomes mandatory.
• Note: Unlabeled footwear purchased before March 1 may be imported until April 1.
• Note: Companies may label shoes made or acquired before March 1 until May 1, but only if they can document the date of manufacture or purchase.

Final thoughts

rfxcel is the undisputed leader in Russia compliance. We’ve prepared for Chestny ZNAK since 2018. We’re one of the few providers with active implementations in the country. We’ve tripled our workforce in Russia over the last year. Our team in Moscow provides our clients, which include major global consumer goods and pharmaceutical companies, the quickest time to market while fully automating their compliance reporting.

No matter how far along you are in your preparations to meet Chestny ZNAK requirements, we are who you need to talk to — even if you’re already working with another provider. Our powerful software ensures companies in any industry will remain compliant with Russia’s complex regulations while mastering their supply chains with end-to-end traceability and rich, actionable data mined right down to the unit level.

Email us today at russia@rfxcel.com to schedule a conversation with one of our supply chain experts in Moscow. We think you’ll be impressed when you learn more about our capabilities in Russia.

And be sure to read “Russia 2020: A Guide to Consumer Goods Supply Chain Compliance,” an easy-to-understand white paper that explains the fundamentals of the Russian legislation and puts it all in context.

rfxcel will be at the Healthcare Distribution Alliance’s (HDA) 2020 Distribution Management Conference and Expo March 8-11 at the Marriott Marquis San Diego Marina (in San Diego, of course). We’re an official sponsor, and invite you to stop by Booth #103 to meet our team and learn the latest from the industry’s leader in supply chain traceability, environmental monitoring, and analytics!

We’re especially excited to talk about the Drug Supply Chain Security Act (DSCSA) Saleable Returns Verification requirement and the solution to meet it: the Verification Router Service (VRS). rfxcel and Vantage Solutions will present a report on our FDA pilot to “Quantify the Readiness of the VRS Network.” Join us on Monday, March 9, from 2:15-3:15 p.m., for an educational discussion about how we’re applying lessons learned from our pilot.

The deadline for meeting the Saleable Returns Verification and being able to authenticate and verify saleable returns using the VRS is November 27, so it’s crucial to be ready. See more about this below!

What to Expect at the HDA Conference

The annual gathering is HDA’s largest supply chain education event. This year, as many as 600 industry-leading manufacturers, distributors, consultants, and third parties are expected to attend the immersive “deep dive” into critical healthcare supply chain topics. But it’s not only a forum to engage in operational and strategic discussions — it’s a great networking event.

The HDA will also be presenting two prestigious awards, its Distribution Management Award (DMA) and the DMA for Industry Leadership. The DMA honors HDA member companies’ “efforts to improve the efficiency, effectiveness, and safety of the healthcare supply chain through successful trading partner initiatives that enhance processes, reduce costs, and leverage advanced technologies or logistical practices.” rfxcel won the award in 2018. The DMA for Industry Leadership recognizes an individual who has “valued and greatly enhanced trading partner relationships, contributed to the development of industry knowledge, and has actively participated within his/her company and through HDA to advance the state of the industry.”

rfxcel Is Sponsoring Must-Hear Discussions!

You won’t be able to miss us at this year’s conference. In addition to our VRS presentation with Vantage Solutions on Monday (2:15-3:15 p.m.) and our exhibit at Booth #103, we’re a sponsor of the following key supply chain discussions:

Monday, March 9

• Intro to DSCSA
• DSCSA Saleable Returns Verification Industry Update
• Serialization Pilot Reports
• Serialization Pilot Reports 2

Tuesday, March 10

• DSCSA FDA Activity Update
• Traceability Dispenser Panel
• Traceability Roundtables

Get the Latest on the DSCSA VRS and rfxcel’s FDA-Approved VRS Pilot!

rfxcel is the industry thought leader in VRS. We extended the testing of VRS and have been implementing a pilot program for the FDA since June 2019 to quantify the readiness of the VRS network to meet the DSCSA Saleable Returns Requirement.

The HDA initiated the VRS with feedback from the pharma industry. It’s an automated service that verifies if a Product Identifier (PI) is valid. A PI has four components: a Global Trade Item Number (GTIN), a unique serial number, a lot ID, and an expiration date. There are multiple VRS providers, each responsible for determining if a specific group of PIs is valid. Thanks to VRS, everyone in the pharmaceutical supply chain can exchange data quickly and securely and verify a product’s validity for sale. Ultimately, this will promote the safety of patients and consumers, and ensure the authenticity of products.

Our FDA-approved pilot is structured to enable transparency and open testing. A key and unique aspect of the pilot is that we will share the details of our VRS test cases with all VRS providers to ensure they have a common detailed set of test cases. We’ll work with the providers to verify the test conditions to enable maximum readiness of the VRS network across all VRS providers. We published a draft copy of our interim findings at the HDA Traceability Seminar in Washington, D.C., in October 2019 and provided our final interim report to the FDA shortly afterwards. We’ll submit a final report to the FDA by the end of the year.

Final Thoughts

As we said above, companies have until November 27 to meet the DSCSA Saleable Returns Verification requirement and to be able to authenticate and verify saleable returns using the VRS. Through our FDA pilot and by applying our expertise in supply chain track and trace, serialization, and compliance solutions, we are helping the pharma industry prepare for this deadline.

The 2020 Distribution Management Conference and Expo is the perfect place to talk with our supply chain experts and learn everything you need to know about the VRS — as well as all the other exciting things going on at rfxcel. We’ve released the latest version of our award-winning rfxcel Traceability System (rTS 7.0). We’re continuing to blaze trails in track and trace, environmental monitoring, and worldwide compliance. And we’re growing our teams worldwide, from Russia to the Middle East to Asia. Book an appointment now (or just stop by Booth #103) and be sure to attend our VRS presentation with Vantage Solutions. We look forward to seeing you!

We’re very (very, very) excited to announce the latest version of our award-winning rfxcel Traceability System, rTS 7.0 — the complete supply chain traceability suite to secure your products.

rTS 7.0 carries on the distinguished pedigree of our signature full-stack digital supply chain solution, enabling end-to-end traceability, visibility, 24/7 environmental monitoring, and data analytics.

rTS debuted in the life sciences/pharma industry. This is where it has proven itself again and again; this is where we earned our reputation for designing supply chain solutions that go beyond the basics of “track and trace” and compliance to encompass key functionality ranging from ironclad compliance in any country to environmental monitoring that uses the latest Internet of Things (IoT) technology.

rTS 7.0 Can Optimize Supply Chains in Any Industry

We currently provide our solutions to four industries: life sciences/pharmaceuticals, food and beverage, worldwide government, and consumer goods. But one of the most exciting things about rTS 7.0 is that it can be used for supply chain management in any industry. It’s fully customizable, interoperable, and scalable, so its suite of solutions will deliver unrivaled performance no matter what your business is, what’s in your supply chain, or where your markets are. And, as always, it’s supported by rfxcel’s world-class customer support and implementation team.

rTS 7.0 also adds extra power because it’s available in a variety of languages. Our customers in Brazil, France, Germany, Japan, China, South Korea, and the Middle East appreciate that they can use every part of rTS 7.0 in their native language, ensuring faster implementation and deeper understanding of product functionalities. All the buttons, menu lists, commands, messages and notifications are clear; without language barriers, nothing stands in the way of exploiting the full potential of rTS 7.0 to meet compliance requirements and optimize every facet of supply chain operations. In other words, customers around the world can realize all the advantages of using the rTS 7.0 suite.

rTS 7.0 Means More Power

Enhanced performance and reduced processing time are just two of the major updates our customers have been anticipating. For example, rTS 7.0 dramatically reduces the time required to generate millions of serial numbers — it takes mere seconds. Some of our customers have generated billions of serial numbers over the years, and rfxcel has made certain that we can excel at meeting this need.

rTS 7.0 is the culmination of a year-long effort to make the platform more powerful and user-friendly than ever before. It has more features and capabilities that previous iterations, yet it’s intuitive and very easy to use. It centralizes complete supply chain control, can be accessed and controlled from virtually anywhere in the world, and ensures you’ll remain informed, nimble, and compliant no matter where you do business.

The main modules available in rTS 7.0 include Serialization Processing, Compliance Management, Integrated Monitoring, Raw Materials Traceability, and Data Analytics.

rTS 7.0 Marks a New Chapter in rfxcel’s 17-Year History

Another reason we’re so excited about rTS 7.0 is that it will enable us to continue our expansion into new industries, consumer goods in particular. As you may have heard, we scored major successes in consumer goods last year, especially in Russia, where we’ll be working with well-known global brands in the apparel industry. rTS will secure the supply chain for these and many other consumer goods, and ensure companies are always complying with Russia’s strict serialization regulations.

Our CEO, Glenn Abood, explains it best: “As we roll out rTS 7.0 and put it through its paces, we’ll be able to demonstrate what rfxcel brings to the table. Jack Tarkoff, our chief strategy officer, and I were compelled to start rfxcel when we realized that it was impossible for consumers to check the authenticity of their prescription drugs. We were born out of the desire to protect people from potentially harmful pharmaceutical products. Today, 17 years later, rTS 7.0 shows why we’re the best supply chain solution provider for companies in any industry.

“I also think rTS 7.0 will help us solidify our position in markets around the world. In addition to Russia, we’ve made strides in the Middle East, especially Saudi Arabia and Bahrain, and are leading in other key markets, such as Brazil.”

As Glenn said, we’re in our 17th year of developing leading-edge supply chain software solutions. With rTS 7.0, we will build on the successes we enjoyed in 2019. What were those successes? Well, in addition to making a splash in the consumer goods industry, we enhanced our powerful Integrated Monitoring (rIM) solution and MobileTraceability app, doubled the size of our team in Russia, began conducting a major pharma pilot for the U.S. Food and Drug Administration, continued leading the supply chain space in Brazil, increased our presence in the Middle East, and hosted a successful User Group in Reno, Nevada.

rTS has never been better, and we want to share our excitement with you! To learn more about what it can do for you, contact Vice President of Marketing Herb Wong at hwong@rfxcel.com or 925-824-0300 and visit rfxcel.com. And remember to bookmark our blog so you can stay up to date on everything that’s going on with rfxcel!