With the global supply chain having spread around the globe, it is more vulnerable to disruption than ever before. Product traceability – driven by new technology – offers a vital way to monitor the status of deliveries and avoid delays. To help companies make the most of the opportunity, The Supply Chain Consultancy Group has spelled out six ways manufacturers can boost their product traceability now.
Deploying a range of digital technologies, product traceability, or the ability to track raw materials, can help manufacturers improve their efficiency and productivity throughout their supply chains. According to experts from The Supply Chain Consultancy Group (SCCG), the practice also means that manufacturers can “build trust with supplier partners and achieve better product management by implementing effective strategies and utilising one or more of the available technologies.”
Writing on the firm’s website, the SCCG professionals note, “A warehouse management system, for instance, provides complete visibility into real-time inventory levels and storage, staff productivity and order fulfilment workflows. Combining the right technology with improved operational practices can significantly improve product traceability.”
But getting the ball rolling on improved product traceability takes work. Supply chain managers must identify the most cost-effective and efficient methods for tracking, verifying, and documenting assets and stocks in their unique environments. Certain sectors, such as the food and beverage, pharmaceutical, and automotive industries, have particular challenges.
Managers may also need to manage recall procedures for defective parts or expired or damaged goods, have methods of fighting fraud and fake products, and monitor sustainability. So, where should they start? According to SCCG, there are six recommended areas to explore when improving traceability in manufacturing.
Implement data-sharing solutions
“Modern software solutions give manufacturers more visibility, providing accurate and up-to-date data to inform decision-making,” SCCG explains.
This includes barcoding and radio-frequency identification (RFID), which are product identification methods that tag and track products throughout their lifecycle, providing real-time visibility. While traditional barcoding will be familiar, providing each item with a unique identifier using printed labels scanned optically to identify products, RFID uses tags with embedded chips and antennas to wirelessly transmit data without line-of-sight, enabling bulk and real-time tracking.
At the same time, Internet of Things (IoT) devices can equip products or packaging with embedded sensors. IoT sensors are internet-connected devices that collect and transmit data about their environment, such as temperature, location, or humidity. This real-time information enables automation, monitoring, and analysis. Meanwhile, blockchain solutions can be adopted for “immutable, transparent records of product movement, ensuring end-to-end traceability and trust among stakeholders”.
Data Visibility
“Centralised cloud-based platforms that manage and protect your data streamline your workflows,” the experts continue. “Seamless data management with supply chain partners such as suppliers and customers is possible if global standards such as GS1 barcodes for product identifiers are adopted.”
This can see information from production, logistics, and sales consolidated for easy access and GPS tracking, with all stakeholders able to access product status information, from raw material sourcing to final delivery. In order to optimise the use of this information, data formats need to be agreed upon, applied, and enforced to ensure accuracy, accessibility, and common understanding.
Utilise data analytics
Manufacturers should monitor and analyse key performance indicators (KPIs) to track trends and quickly identify any irregularities or weaknesses. By analysing the data in detail, they can locate the root cause of defects or inefficiencies, and trace them quickly.
The professionals add, “Predictive analytics uses historical and real-time data to forecast potential delays, demand fluctuations, and maintenance needs. Manufacturers can identify risks by analysing IoT sensor data and supply chain patterns, optimise logistics, and streamline inventory management.”
Build strong relationships with suppliers.
According to SCCG, manufacturers should “develop strong and mutually trusting partner relationships”. Supplier inefficiencies adversely affect lead times, so key suppliers should implement traceability standards and ensure transparency from sourcing to production.
“By engaging fully, you can effectively communicate your need for priority attention, plan better, and avoid any shortages or delays. Supplier performance can be monitored through electronic data sharing, compliance audits and quality assurance checks.”
Train your employees
The experts recommend firms should “equip staff with the skills to use your traceability systems and identify process gaps.”
As proactive training “improves accuracy and boosts morale”, organisations should therefore commit to educating employees upfront about the purpose of traceability. This can emphasise their responsibility and help them feel more invested in their role.
Implement sustainability practices
Finally, to fulfil business goals, product traceability has become critical to all manufacturing industries, from cars to food to pharmaceuticals.
SCCG concludes, “Businesses that incorporate environmentally conscious and sustainable business practices can reduce costs, prepare for the future, and meet customer demands. Lifecycle tracking means extending traceability to cover product recycling, reusability, and waste management.”
SCCG is a supply chain and logistics consultancy operating in the UK, Europe, Asia, Africa, Australia and the US. Established in 2004, SCCG provides pragmatic and implementable logistics, warehousing and supply chain solutions, to its more-than 300 clients, having helped over 500 projects to date.