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Traceability is Key in Manufacturing and Distribution

With recent global events revealing how fragile the global trade links can be, it has become imperative that companies can react quickly to changes in supply. Could you trace the cause of a supply problem in your business and take corrective action?

Today, consumers are also expecting more accountability from suppliers, to ensure that the products they buy come from companies with responsible business practices. This means that manufacturers need to have a clear view of where materials are sourced and how they are used in the manufacturing process. Consumers often want to support their local economy or specific sustainable practices, and this supply chain information allows them to make buying decisions in line with their values.

Green manufacturing trends

have led many manufacturers to pursue a circular economy – a system designed to eliminate waste and encourage the continuous reuse of materials. When consumers consider their environmental footprint, they want to know if there is a sustainable supply chain behind their products i.e. one that fully integrates ethical and environmentally responsible practices. Find out more on this topic in our infographic: More manufacturers get serious about sustainability.

These global factors and expectations from consumers and business partners impact the entire supply chain, making it necessary to have end-to-end supply chain transparency and a complete product history.

Traceability is vital to ensuring compliance, managing quality and protecting companies’ reputations.

Other advantages include:

  • Makes it easier to trade with other countries, 
  • Helps with the management of any recall process, 
  • Helps manufacturers to identify the source of all inputs, such as raw materials, 
    additives, and packaging, 
  • Helps with the prevention of product counterfeiting,
  • Keeps customers informed, happy, and loyal, 
  • Helps meet regulatory requirements, and 
  • Mitigates risk associated with non-compliance. 

Emerging technology can help process manufacturers to advance their traceability efforts by using their data to gain visibility into supply and processes. Some of these emerging technologies include:

The Internet of Things (IoT): enables manufacturers to track a product’s movement through the supply chain, using sensors, RFID tags, and QR codes.

Big data analytics: by tracking data in real-time, you’re able to identify problems quickly and take steps to mitigate their impact.

Cloud computing: – provides on-demand availability of computer system resources, and powers the IoT and big data analytics. Cloud-based software can automate entire processes and helps to make real-time information available anytime, anywhere.

Blockchain: Distributed ledgers like blockchain provide a framework for end-to-end digital trade executions, digitalising documents and trade execution processes.

Traceability increases visibility into the supply chain and manufacturing processes, and improves quality control systems. It may be time to investigate traceability in your supply chain – help to drive a culture of accountability and compliance in your business while protecting your reputation and minimising risk.

Traceability in Sage X3 ERP


this video uses the food industry to illustrate functionality

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