How traceability can help process manufacturers build stronger supply chains
Industry 4.0 and digital transformation empower process manufacturers to overhaul their operations. Two areas we’re seeing the biggest change are in product innovation and supply chain traceability. New business ecosystems are emerging that tap into the digital economy and bypass traditional sales channels, as industry players shift their focus from products to services. This change […]

- New tariffs and trade costs,
- Compliance considerations and potentially new customs procedures,
- Possibly increased lead times, depending on where manufacturers source their components from,
- Developing stronger relationships with suppliers, and
- The knock-on effect of supply chain delays on customer relationships, contract terms, pricing, and demand volume.
Importance of traceability in supply chain management
With any global business expansion comes new commercial pressures and expectations, which could put strain on your supply chain. This means it’s crucial that you use your data to manage product quality and improve efficiency through better traceability. International standards govern quality and traceability of raw materials. As a process manufacturer, you need to know what’s inside your products and where they came from, especially if you want to avoid problems down the line. This can be difficult to monitor. Not to be confused with ‘tracking’, which focuses on the progression of parts through the manufacturing process using location data, ‘tracing’ has to do with authentication. Through supply chain visibility, tracing lets you identify the origin of a part and better manage accountability, supported by certificates of origin and purchase order numbers. Tracing is important because counterfeit products can cause massive problems, especially in industries like pharmaceuticals. In the food and beverage industry, accurate tracing helps consumers to make informed decisions, like trusting that the product they’re buying is, in fact, vegan or vegetarian, or that it doesn’t contain nuts or shellfish, which they might be allergic to. Efficient and accurate tracing depends on all businesses in your supply chain complying with international standards. It’s worth evaluating your supply chain for compliance because traceability provides:- The security of a healthy brand and loyal customers,
- Real-time visibility into all processes,
- The ability to respond to non-compliance events or demand triggers in real time,
- The flexibility to share product information with suppliers and customers, so they know where their products come from.
- Make better-informed decisions,
- Avoid compliance issues through monitoring,
- Support product recalls,
- Better manage materials and know when you need to order more,
- Improve demand planning,
- Arrange better terms with suppliers, and
- Better manage logistics.
What technology should process manufacturers focus on?
Traceability is key to compliance, protecting customers, and avoiding reputational damage and hefty fines. Emerging technology can help process manufacturers to advance their traceability efforts.-
The Internet of Things
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Big data analytics
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The cloud