According to the survey McKinsey of 2024, which was conducted among more than 100 supply chain leaders from various industry sectors, shows that as many as 60% companies say they already have systems in place to comprehensively track first-level suppliers. That's up 10 percentage points from a year earlier, and a clear sign that traceability in the supply chain and more often recognized as a standard, without which it is difficult to talk about effective risk management and operational continuity.
While today many organizations focus primarily on controlling direct suppliers, the real challenge is becoming the implementation of full traceability of components, materials and processes.
From this post you will learn:
- What are the main types of traceability in logistics?
- How can traceability in logistics become your competitive advantage?
- What kind of traceability is worth implementing in your company?
Traceability in logistics - what is it?
Traceability in logistics means the ability to accurately ship at every stage of the supply chain. It means being able to answer key questions at any time:
- Where is my shipment currently located
- What route did she take?
- Who operated it and when?
- Are there delays or problems?
However, traceability in logistics does not just mean simply "tracking packages." In order to take full advantage of its potential and adapt your processes to the growing expectations of your customers, it's worth looking at it more broadly. Because the system Traceability in logistics composed of four complementary types. While not every company needs them all, it is only by consciously combining them that maximum potential, control and operational efficiency can be achieved.
What types of traceability in logistics do we distinguish?
In logistics, there are four types of traceability, and each is responsible for a different aspect of controlling the flow of goods:
✅ Compliance traceability (external).
✅ Traceability of origin (back)
✅ Locational traceability (forward)
✅ Process traceability (internal)
Backward traceability - why is it important and how does it support processes?
Backward traceability allows you to "go back in time" and determine the origin of a particular product or batch of products.
Practical application:
✅ Reduce the scale of the recall.
✅ Identification of causes of complaints.
✅ Locating the defective batch.
Forward traceability - what does it consist of?
Forward traceability makes it possible to track a product from manufacturing to delivery to the end customer.
Practical application:
✅ Optimization of routes and delivery times
✅ Prompt notification of defective batches to recipients.
✅ Analysis of distribution channel efficiency.
Internal traceability - when is it worth implementing?
Internal traceability examines everything that goes on inside your organization - from production to quality control to warehousing.
Practical application:
✅ Detecting bottlenecks in production.
✅ Monitor the efficiency of production lines and employees.
✅ Automatic quality control at every stage.
External traceability - what is it?
External traceability, on the other hand, refers to any information from your suppliers and external partners. It includes, among other things, the identification of raw materials and components before they enter the plant and the tracking of products already outside the company.
Practical application:
✅ Trace the origin of materials (e.g., wood, pharmaceuticals).
✅ Automatic generation of compliance documentation (e.g. GMP, ISO).
✅ Building trust in B2B relationships.
What kind of traceability to implement in the company?
Not every organization needs to implement a full traceability system. The key is to match the type of traceability to the real processes and risks in your industry. Let's use some practical examples:
✅ Food industry (FMCG) - Here, systems to quickly locate and recall specific batches of products are key. Backward and forward traceability is worth betting on.
✅ Automotive and component manufacturing - In this industry, it's the full control of processes that counts. The greatest value comes from internal (process) and backward traceability.
✅ E-commerce - The priority is forward traceability, that is, the ability to accurately track orders until they reach the end customer.
How do we at Intralog support traceability processes in companies?
Our pharmaceutical client faced the challenge of providing full traceability in compliance with strict legal requirements. Together, we designed a solution that not only meets GMP standards, but also realistically improves the quality of operations.
Need support in implementing traceability in your organization? Contact us and together we will design a tailor-made solution for your needs.
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