In today’s complex supply chains, traceability—the ability to track parts, processes, and materials by lot or serial number—is essential for operational efficiency, compliance, and customer trust. BP.300 Traceability enables businesses to respond swiftly to disruptions, meet regulatory demands, and achieve sustainability goals.
By integrating traceability across processes and aligning it with sustainability strategies, companies can ensure smoother operations while addressing critical environmental, social, and governance (ESG) challenges.
Processes for Effective Traceability
Traceability spans various supply chain processes, requiring collaboration and alignment at multiple levels. Key processes include:
- OE Orchestrate Supply Chain
- OE1 Supply Chain Strategy: Incorporating traceability into overall strategy ensures alignment with business goals.
- OE10 ESG Integration:
- Aligning sustainability plans with supply chain operations (OE10.2).
- Strengthening resilience to disruptions (OE10.5).
- Developing integrated ESG reporting (OE10.6).
- OE13 Circular Supply Chain Management: Utilizing traceability to enable recycling, reuse, and responsible material handling.
- Planning (P) and Fulfillment (F)
- Plan Supply Chain (P1): Leveraging traceability to forecast and allocate resources.
- Ship Product (F2.10) and Obtain Proof of Delivery (F2.12): Ensuring precise tracking of shipments to enhance customer satisfaction.
- Return and Transformation
- Tracking returns (R1) and MRO activities (R3) ensures accountability and aligns with sustainability efforts.
Metrics Driving Traceability
Traceability is integral to measuring sustainability and operational performance. Key metrics include:
- EV.1.1 Materials Used: Tracking renewable vs. nonrenewable materials.
- EV.2.9 Scope 3 GHG Emissions: Managing indirect emissions across the supply chain.
- EV.2.10 Waste Diverted from Disposal: Ensuring waste management practices align with sustainability goals.
Examples of Effective Traceability in Action
Traceability is not limited to large multinationals; smaller companies are also implementing robust systems to enhance their supply chains. Here are three examples:
- BioLogica:
BioLogica, an organic fruit producer, utilizes barcode technology and cloud-based traceability software to establish an end-to-end tracking system for their products. This approach ensures transparency and allows consumers to verify the origin of their purchases. Qarmain Inspect - Rémy Cointreau:
Rémy Cointreau, a premium spirits company, employs QR codes, NFC tags, and RFID technology to track the route-to-market for their products. This system provides visibility into distribution channels and helps detect unauthorized distribution, ensuring product authenticity and quality. ScanTrust - Nobody’s Child:
Nobody’s Child, a fashion brand, has integrated Digital Product Passports (DPPs) into their garment styles. By collating data throughout the value chain, including materials, suppliers, compliance, and sustainability, they enhance transparency and traceability, aligning with their core values of ethical production and sustainability. Vogue Business
The Future of Traceability
As traceability evolves, analytics and technology will continue to play a pivotal role. Businesses must integrate digital solutions such as blockchain, IoT, and AI to unlock real-time visibility and insights.
By embracing BP.300 Traceability and aligning it with processes, metrics, and sustainability pillars, companies can navigate complex supply chain landscapes while delivering value across the triple bottom line: people, planet, and profit.
