Traceability is a tool for identifying and controlling the elements involved in the production of a product (from raw materials to packaging) and all the phases it must go through (production, storage, distribution and delivery to the customer).
Using traceability software solution is an effective to manage all this information in a controlled, efficient manner, without the possibility of errors. The importance of traceability in logistics is unquestionable, which is why companies require effective software to control their stock.
Next, we will see what functions this software must fulfill and what benefits it can bring to companies.
What is Traceability and why is it so Important?
First of all, let's start by defining what traceability is. According to Regulation 178/2002 of the European Parliament and of the Council, traceability is the possibility of finding and following the trail of a product at all stages of production, processing and distribution.
Traceability consists of reconstructing the history of a product and identifying the conditions surrounding it throughout the supply chain. Thanks to it, it is possible to know everything that happens in the logistics chain and detect the origin of an incident with ease.
Let's imagine a company that, for safety reasons, is forced to recall a batch of a product from the market. To locate the items in question, it will have to use traceability and will need the collaboration of the different links in the supply chain.
Product traceability can be of three types: backward (ascending), internal (process) or forward (descending). Backward traceability consists of finding the origin of the ingredients and elements that have been used in the production of the product. Internal traceability focuses on knowing the process that the product has undergone within the company in relation to the raw materials that make it up and its packaging. Finally, forward traceability is based on identifying the recipient of the product and all the information related to its marketing.
Why use Traceability Software?
Sectors such as food, pharmaceuticals and chemicals are required to control the traceability of their goods. Companies in other sectors also do so to strengthen their commitment to consumers and to transmit confidence to their clients.
To keep track of all the information relating to their products, companies need a traceability system. This is a computer program that allows for a thorough monitoring of the products that enter, remain in and leave the business. At the same time, secure control is kept of the processes that each item has undergone.
Effective traceability software must follow the movement of products through the stages of production, processing and distribution. It must also consider backward, internal and forward traceability to fulfill four functions:
Provide a complete history. To find out which supplier supplied the items or, in the case of kitting or manufacturing, to find out the raw materials used in their assembly and production.
Locate any product at any time, regardless of its location (whether in the warehouse or at the points of sale).
Know the logistical attributes of the products, that is, information such as the origin, serial number, EAN code, colour, manufacturing date or best-before date.
Being able to block stock affected by some security measure and prevent it from being distributed and marketed.
ERP software has features for managing warehouses, such as tracking receipts and shipments. This allows you to monitor which goods have arrived at the warehouse and have been distributed. However, the role of this software is not specifically to manage logistics processes, as it lacks the ability to perform comprehensive inventory control and therefore the ERP cannot provide full traceability of the goods.
Benefits of traceability software
Traceability management software is vital for handling large volumes of data and information about products. Here are some of its key benefits:
Provide information on the status of products and their processes in real time. Not only are the specifics and exact location of the items known but their journey through the different phases of the supply chain is also tracked, thus being able to detect inefficiencies.
Control product quality. By knowing all the data about the products, processes can be planned and more precise control of the merchandise can be carried out.
Act quickly. The system enables faster tracking of merchandise that must be withdrawn from the market for some reason.
Comply with current legislation. European sustainability certification companies in the chemical, pharmaceutical or food sectors must establish a traceability system in accordance with Regulation 178/2002.
Transmitting confidence to customers. A company that monitors the status of each and every one of its products generates peace of mind and security for customers.
Using traceability management software makes all the difference. A company that has all its inventory under control and knows its processes in detail is a company that generates trust and, therefore, has greater potential for success.
Security and Control
Product traceability is the responsibility of all actors and elements involved in the supply chain: suppliers, manufacturers, logistics operators, transporters, merchants and consumers.
Having software is essential for keeping accurate track of your merchandise. This type of program records all the attributes of the product and allows you to track the different stages it has had to go through.
Choosing which traceability software to use is a crucial decision for any company. There is no doubt that the WMS has become a differentiating element for companies that want to carry out efficient management of their stock.