Smart Labels Redefine Procurement with Automated Settlement

Giesecke+Devrient (G+D), the German security technology firm, has unveiled a ground-breaking Internet of Things (IoT) Smart Label.

This credit card-sized device is designed to transform procurement processes by integrating with B2B payment systems to enable automated settlement upon delivery.

The innovation aims to simplify cross-border trade and disrupt traditional payment methods such as letters of credit.

With annual revenues of €3bn (US$3.1bn), G+D collaborated with IoT hardware maker Sensos to create a label packed with GPS tracking, temperature monitoring and tamper detection features. The inclusion of an integrated SIM (iSIM) allows it to connect directly to mobile networks, eliminating the need for physical SIM cards.

Additionally, the device complies with air travel certifications, ensuring seamless tracking across multiple transport modes.

Revolutionising the procure-to-pay cycle

The G+D Smart Label introduces significant advancements in procurement, particularly in the complex realm of cross-border trade.

By automating payment verification and settlement processes, this IoT innovation addresses a critical stage in the procure-to-pay (P2P) cycle. It reduces manual intervention, accelerates payment approvals and eliminates common delays that often plague procurement workflows.

For procurement professionals, the device offers invaluable benefits:

• Enhanced supply chain visibility: Real-time GPS tracking and temperature monitoring ensure better oversight of goods in transit. For sectors handling perishable goods, this means greater assurance of product integrity during transport.
• Automated delivery proof: The tamper detection feature simplifies the receipt and acceptance process, offering instant verification of delivery.
• Cash flow optimisation: By enabling faster payment releases through integration with B2B systems, suppliers experience improved cash flow, while buyers benefit from streamlined payment operations.

These features align with broader trends in procurement automation, which seek to enhance efficiency and visibility across procurement cycles.

The G+D Smart Label positions itself as a solution for procurement teams aiming to optimise processes while maintaining high standards for compliance and quality assurance.

Innovation in payment systems and logistics

The integration of payment systems into physical tracking technology represents a departure from traditional trade finance instruments, such as letters of credit.

G+D’s partnership with Track & Pay, a B2B payments firm, showcases this capability. The label connects shipment verification to payment systems, triggering automatic settlements upon delivery confirmation. This innovation reduces settlement delays, a recurring challenge in procurement and trade finance.

The label's technical capabilities also support logistics integrity. Temperature sensors monitor storage conditions, ensuring compliance for sensitive goods like pharmaceuticals and fresh produce. Its tamper detection feature provides immediate proof of delivery, adding another layer of security to procurement workflows.

Activated when applied to a shipment, the label uses motion sensors to track movement and acceleration. GPS technology delivers location accuracy within 10 metres under optimal conditions. Connectivity and firmware updates are managed via a cloud platform, allowing users to customise reporting intervals based on specific operational requirements.

This second-generation Smart Label builds on G+D’s earlier logistics solutions, which earned recognition for innovation.

As Sharath Muddaiah, G+D’s Head of Portfolio Strategy for IoT Solutions, explains: “G+D has been dedicated to designing robust solutions for the transport and logistics market and is the market leader of solar-powered trackers with over 180,000 connected devices in the field.”

Expanding availability and market impact

Currently, the G+D Smart Label is available through direct purchase and on G+D’s IoT shop for customers in Germany and the United States. The technology will be showcased at the Consumer Electronics Show (CES) in Las Vegas, highlighting its potential to redefine procurement and logistics.

The Munich-based company, which operates in digital security, financial platforms and currency technology, has a long-standing history of innovation since its founding in 1852. Employing 14,000 staff across 123 subsidiaries worldwide, G+D continues to expand its influence in the digital security landscape.

Sharath concludes: “The G+D Smart Label provides a single end-to-end solution, including dedicated service support and warranty from one source. Our industry has seen many a solution that, once sold, has limited support and we are here to set a new trend!”

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