What is Traceability?

What is traceability?

Traceability has many definitions depending on the sector; fundamentally it is the ability to quickly and efficiently track and trace the history, distribution, location and application of products, parts and materials – from suppliers and manufacturers through assembly and final delivery to customers.

1. The potential of traceability

With increasing competitive pressures and tougher consumer demands, it is harder than ever to earn – and keep – your customers’ confidence and trust. Manufacturing and logistics businesses are finding they need to protect their brand and reputation more now than they have ever had to before.

For a business to be able to negate or minimise the impact of recalls is vital in retaining customer loyalty and reduce cost. Product or part recalls are costly and can be crippling to the small and medium size enterprise (SME). The ability to trace and find key information to protect your company or support your customers in the event product recalls can make a vital difference when securing new contracts.

Implementing an efficient traceability process not only drives the management and prevention of recalls, but also protects your business from any non-compliance fines and penalties.

Manufacturing and logistics are employing software solutions to support with traceability and help them close or eliminate information gaps that exist in their supply chains.

Aerospace and automotive supply chain concerns

If you supply (or want to supply) aerospace and automotive customers, you will be probably be aware of the risks faced by these industries with the supply chain. BSI Group reports risks from natural disasters, theft, and counterfeit production:

Tier 1 and primes are driving the supply chain to demonstrate total control over product integrity, quality standards, and traceability. The demand for tight scrutiny to guarantee their components are properly manufactured and sourced are critical to ensure consumer safety.

Both manufacturing and logistics are affected by the need for rapid, secure, demonstrable traceability and well documented audit trails. Perhaps it is best to rely on the ISO standard and what it says on traceability:

…it is up to the organisation to decide how far this needs to be taken, but you are generally required to:

• Establish the identity and status of products
• Maintain the identity and status of products
• Maintain records of serial or batch numbers

Your identification system

Where appropriate, the identification system should allow for traceability from the finished product back to incoming material records and customer specifications. Products must be suitably identified by a part number or job number corresponding to applicable drawings, specifications and other technical documents related to the product.

Whether providing a service such as logistics or manufacturing physical product, BSI calls for you to “…have appropriate methods of ensuring identification and traceability of the outputs during production and service provision…"

2. ISO and compliance

Increasing regulation and demonstration of compliance with standards can be seen as red tape, or as an opportunity for business growth – these standards are not going away. So just how many are there? Other sectors are equally impacted with the demands of traceability and robust audit trails. Warehouses storing and distributing medical devices or food and drink can opt to comply with GS1.

Largely unseen, yet tremendously important, GS1 standards ensure key processes run smoothly in some of the world’s biggest industries. For instance:

Retail. GS1 standards lie at the heart of efficient ‘just in time’ systems. Retailers can track products at every stage of the supply chain, meeting changing consumer demands with minimal wastage and maximum cash flow.

Healthcare. Standards play a key role in delivering exceptional care and maintaining patient safety. From monitoring medication to ensuring optimal use of critical resources like MRI scanners, GS1 standards revolutionising healthcare services.

Transport and logistics. How do you make sure things are in the right place at the right time, and then communicate the status to customers? GS1 standards provide a framework for real-time tracking, traceability and supply chain optimisation.

GS1 General Specifications January 2018 for manufacturing and logistics traceability in supply chains ISO 9001 is well known of course, but if you are looking to expand into other areas of work there are other standards to consider: 

• Industry specific Quality Management Systems
• AS/EN 9100 Series - Aviation, Space and Defence
• ISO 13485 for the Medical Device industry
• ISO/TS 16949 for the Automotive industry

This is not an exhaustive list, and this eBook is not intended to be a definitive listing either. But the sheer number of pages of standards that are written for companies to have to follow indicates the complexity you have to deal with whether you are in manufacturing or logistics.

But the common theme is the accuracy and detail demanded of your operations and record keeping. And it’s not just the record keeping physical stock movement, suppliers, despatches or drawing control, it’s ensuring the technical qualifications and skill set of every operator can be demonstrated to match the work they carry out.

3. Hidden Benefits

Implementing efficient traceability processes improves data accuracy, reduces human errors and ensures product quality standards are met; and provide real-time information on production, capacity and financials. Collect and track production data to the exact date, time, supplier components, operator and machines used as well as financial paperwork, such as purchase orders, invoices and certificates of conformity linked to that particular part, component or raw material.

Efficient traceability reduces the time lost by your employees in tracking information down. Reducing laborious and tedious tasks and freeing them to focus on what’s important to your business, in turn assists in staff retention, motivation and satisfaction.

Some of our customers comment that using software to manage the traceability audit trail to respond to product recall is like insurance. Others look at the time saved in administration costs in recording and maintaining the traceability trail and, in turn, demonstrating this to ISO auditors. Freeing your team and your time from non-productive admin tasks allows everyone to focus on getting work out of the door quicker.

4. Traceability - a must for all businesses?

Many consider rigorous traceability procedures to be essential and without it you are at risk of falling behind your competitors. This could have an impact on order intake from OEMs and Tier 1s, who want their supply chain to be able to trace every part or product – instantly and accurately.

Traceability delivers confidence in your business during product recall, ISO audits and in securing new business. By keeping accurate and traceable data you are taking control and demonstrating a responsible and professional approach to how you run your business.

Managing traceability with software is about being smart and becoming a business everyone trusts, giving you the edge over your rivals, cost-savings, reduced paperwork and something you cannot put a price on - peace of mind.

Having 100% confidence in your traceability processes, means you tackle all scenarios swiftly and professionally; you increase efficiency and you remain compliant.

Companies are under the spotlight more than ever, with stories of product recalls never far from the headlines. There has never been more demand for transparency of every part of the supply chain and increasingly is seen as an opportunity to differentiate and grow your business.

Have you considered?

What’s your worst-case scenario in terms of a faulty product and the effect it could have on your business?

and

what can you do, as far as possible, in term of mitigation?

At this point, an investment in traceability software becomes readily justifiable.