The Ultimate Guide to Traceability in Manufacturing

Simply put, traceability in manufacturing implies knowing every step of the manufacturing process to the final customer or consumer. Two critical questions to be answered for effective traceability here:

1. Where is this from? (what you can refer to as Traceability by material)
2. Where has it been? (what you can refer to as Product traceability)

Product traceability in manufacturing

This is just like tracking when a pizza is delivered. But, we’re specifically talking about tracking your products this time. Product traceability in manufacturing gives you an assurance that every product part will pass through each stage before it hits the shelves for sale—from raw materials to finished goods.

Material traceability in manufacturing

Think of it as following a receipt trail for every ingredient in your grandma's secret recipe. You want to be assured you know where each part came from, just in case trouble arises down the line (like discovering those organic tomatoes were anything but organic).

Traceability is the ability to establish and verify the history, location, or application of a product, process, or data. The basis for transparency, accountability, and compliance is traceability used in various sectors beyond just manufacturing (like logistics and software development). Effective traceability objectives help the organisation improve its quality control, hit legal requirements, and boost customer confidence. Let’s explore some of these in more detail:

Regulatory compliance

Manufacturers are subject to abiding by an ever-increasing number of regulations including the Food Safety Modernization Act, Drug Supply Chain Security Act, and ISO 9001. In particular, industries such as food manufacturing, pharmaceuticals, and aerospace have very stringent guidelines in place for tracking materials. Getting one thing wrong can, in extreme instances, lead to large fines, legal trouble, or worse still, customer distrust.

Example: Do you remember back when a major car company recalled thousands of vehicles just because of faulty airbags? The fiasco not only translated into millions of dollars in replacement part costs and refunds but also tarnished the brand's name.

That was one classic instance of having failed in traceability. Had the flawed parts been caught earlier, the company could have limited the recall to a much smaller batch, minimising both the financial damage and the long-term loss of consumer trust.

Risk mitigation

This is basically a case of not letting defective products reach consumers. After all, traceability in manufacturing is a great way to detect problems early enough.

This way, when they do arise, they’ll spare you from serious PR headaches later. Instead of tackling widespread recalls or outrageous customer complaints, targeted responses are identified early to significantly mitigate the risks.

Example: If batch A of bad chocolate bars is traced back to one specific supplier, you can recall that specific batch instead of the entire production line. By isolating the issue, the company avoids a severe blow to its reputation but saves only a tiny fraction of the production.

Quality control

Good traceability means that the manufacturer can guarantee that all components meet quality standards. In more detail, it gives manufacturers the ability to trace and document the source and production milestones for every component, spot potential spots of weakness, and thoroughly inspect the manufacturing process. This will also reduce defects and make the reliability of a product better, scoring you more long-term customers as an added perk.

Example: If you’re producing car parts at your factory, you really don’t want to be taking chances with quality control. The risks are far greater than you might even be able to estimate. Traceability would allow your staff to check, for instance, if a given batch of steel components meets specific tensile strength specifications before they go into assembly. If any batch does fail the standard, it may be removed and replaced without holding up the rest of production.

Read more on how you can use a Requirement Traceability Matrix, a must for any industry where product quality remains the top priority.

Besides the obvious quality and risk issues you can prevent, here are a couple of noteworthy benefits of traceability in manufacturing that highlight its importance.

Enhanced accuracy

Say goodbye to the guesswork by using a traceability program that lets manufacturers minimise errors, improve tracking of their manufacturing operations, and avoid unnecessary costly mistakes.

The car manufacturer we’ve referenced above could stick to a digital traceability system to maintain follow-up on each component (from engine parts to the smallest screws) of each vehicle for determining the specifications of the parts.

This would allow the manufacturer to trace defective parts based on their batch, getting to the very root of the problem while protecting other products from a similar unfortunate event. Such precision gets rid of several risks and losses that having to recall the entire batch or grapple with customer complaints would pose.

Avoiding product recalls

Recalls are a manufacturer's worst nightmare. They’re expensive, take time, and kill a brand's reputation. But they do happen. So rather than being scared of them, relying on a strong traceability system can help you prevent or at least ease a recall.

If your bakery produces gluten-free bread but a beker accidentally adds regular flour to one batch, traceability will help you zero in on those products. Just use your batch code and remove only those products before they hit the shelves. This helps you avoid large-scale recalls and their financial consequences, as well as protecting both customers’ health and the company's reputation.

Guaranteed customer satisfaction

Keep customers happy and get them to become regular buyers by simply giving traceability more attention. People simply want to know where their products were sourced from. Open manufacturing is the single ingredient that gives birth to trust, and it’s this very trust that breeds customer loyalty.

Let’s say a customer buys organic raw honey from your business in a jar. By scanning a QR code you pasted on the jar, the customer can trace the honey back to the farm it was harvested from. This assures the customer of the quality and authenticity of the product and likely binds

them to the brand. Knowing exactly where the honey came from adds to their loyalty to the brand, prompting repurchasing action and sharing information with others.

Tracking is often confused with traceability while the two are rather different. Let’s explore the various functions and differences between traceability and tracking in the manufacturing space.

For starters, tracking refers to the ability to know the real-time location of a product or item at any moment. It provides a snapshot of where the item is right now since it's all a matter of tracking and tracing which takes place at multiple levels. Tracking systems often use terms like estimated time of arrival or delivery status to keep you up to date.

Here’s an example: You are probably familiar with delivery apps where, upon completion of the online purchase, the user gets a notification that reads, "Your package is out for delivery." Tracking simply implies that both you and the buyer can track the location right now, seeing exactly where it is and who picked it up.

Traceability goes beyond the delivery process, looking at exactly where the product (or its materials) came from and where it’s heading. In other words, you’re understanding the product's route, through every single step.

Traceability goes beyond the present location, extending the “tracking” to the entire product lifecycle. This can tell the consumer everything about the journey, from where the product originated all the way to its final destination.

You, as the manufacturer, also benefit from traceability as you can always see what changes or processes the product has gone through and what actions it experienced during its journey.

Let’s take the same example of the delivery app. With traceability at the forefront this time, this would tell you something like: "Your package has been packed at warehouse A, shipped through distribution centre B, transferred to local hub C, and delivered by driver D."

This gives you a succinct time frame for all the processes and movements. Next steps? You’ll be able to track every section of the product's journey, potentially spotting risks or bottlenecks that might even impact manufacturing and product usage.

Traceability in manufacturing is not just a compliance issue. The main outcome you’re looking for is all about efficiency, quality, and customer satisfaction. Whether you're producing life-saving medications or the finest coffee beans, a robust traceability system can decide success or failure.

Still, working with outdated spreadsheets and gut feelings? If so, it may be time to make the transition. Modern traceability systems come with production planning tools for a rigorously painless integration (which might even be fun, if you're into that kind ). See how Access Manufacturing software can help you streamline your manufacturing processes and improve efficiency.