Enhancing supply chain security through physically unclonable authentication

Abstract

Global supply chains are facing increasing challenges related to product counterfeiting, grey-market diversion, compliance with international sanctions, and the fulfillment of sustainability requirements. Conventional identification and tracking technologies, such as barcodes, RFID, and Real-Time Locating Systems (RTLS), effectively support logistics operations; however, they have limited capability to verify the authenticity of physical products and detect tampering. This paper presents the operating principles of NanoSign technology and investigates its potential applications across various logistics domains. The study compares NanoSign with currently applied tracking technologies and examines its applicability in sanction compliance, Digital Product Passports, ESG compliance, pharmaceutical logistics, and the authentication of high-value products. The results indicate that NanoSign is not intended to replace existing tracking systems but to complement them with a physically unclonable authentication layer that can significantly enhance supply chain security and transparency. Finally, the paper discusses the current limitations of the technology and outlines potential directions for future research.