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What is traceability and what are its benefits?

MRP Warehouse Management Industry 4.0 Supply Chain

Posted 21/08/2020

 

There are countless examples of manufacturing businesses hitting the headlines because of problems with contamination, product malfunction, and sometimes industrial sabotage. The UK government even has a website dedicated to informing the public about product recalls, from car components to candles, and each recall has the manufacturer’s name attached to it. This is worst case scenario for a business, but it still shows how not having robust, traceability processes in place can affect your business’ revenue and reputation.

There has never been more demand for transparency of every part of the supply chain and increasingly it is seen as an opportunity to differentiate and grow your business. However, having effective traceability processes takes more than updating an audit trail. Traceability is about trust, reputation, efficiency, safety, innovation, quality, staff morale and risk-management.

Regardless of the type of manufacturing you’re in, effective batch traceability is both cost-effective and reassuring to the wider supply chain.

 

Benefits of Product Traceability

 

Business protection

How quickly and efficiently a manufacturer can trace the problem and take control of the situation is crucial. That initial response is what is remembered most, particularly if people have been at risk. And what is said in those first important hours after a problem occurs is entirely dependent on the traceability processes and support in place, as this will prove key to finding answers to the urgent questions being asked.

 

The ideal is a ‘cradle to grave’ automated system which spans the whole supply chain and contains all the information relating to the product, breaking it down into its component parts and sources. Traceability functionality will make it easy to drill down instantly and find out where individual elements came from, where they ended up, and who granted approval or acceptance at each stage.

 

For some, elements within the business may be automated but ultimately, when a problem occurs it’s left to an individual to search through filing cabinets full of paper records, or plough through endless spreadsheets and logbooks.

 

Run leaner

Although there are various solutions available that provide robust traceability processing, many SME manufacturers are still relying on a manual approach. Often these records are only kept for compliance purposes, so the speed of access isn’t a priority. It can, therefore, be a little like looking for a needle in a haystack and slow down the usual manufacturing operation.

 

Adoption of traceability alongside technology will help your business run leaner and smarter.  The direct costs involved in reimbursing customers, fixing problems and producing replacement products eats into your profit margins. By having real-time traceability processes in place, you can make sure you mitigate the costs involved with traceability and tackle any problems early on. In perhaps the most challenging economic time for decades, taking control of recalls can be a game changer for manufacturers.

Safety certificates can be provided automatically, as well as complete audit trails being transferred onto a system and integrated into the wider manufacturing project, information will be updated in real-time and accessible to all parties involved, resulting in ultimate supply chain traceability without disrupting manufacturing.

 

Customer Confidence

Dealing with traceability efficiently is a confidence booster that has a positive and profitable impact on customer relationships. For many tier one customers, it also shows a level of commitment and professionalism that sets you apart from other manufacturers.

Demonstrating to prospective customers you have solid processes in place will help build trust from the offset to create a collaborative business relationship. Having this readily available to share will give your business the edge to prospective customers, showing that your guarantees are more than just your word - you can use evidence to support timescales, yield and quality.   

 

The takeaway

Traceability delivers confidence in your business during a product recall, ISO audits and in securing new business. By keeping accurate and traceable data you are taking control and demonstrating a lean and proactive approach to how you run your business. Why not download our traceability checklist below to see how your business matches up?