Posted in Operations and Supply Chain Terms, Total Reads: 196
Traceability is the ability to locate, check, trace etc whereabouts of a product in a supply chain transit with the help of recorded documentation. These days with the use of technology, instant traceability of products in transit is possible, which is extensively used by courier and e-commerce companies.
Companies in modern era are trying to make their full supply chain public to show the customers where the things come from and what operations are executed where. This is being done to showcase the customers the environment friendliness of the product that they are using. Companies are using this technique as a marketing gimmick to gain the competitive advantage in the market. But for companies to showcase the environment friendliness, first they have to be sure of the degree of eco friendliness of their supply chain and improve the same if required. So they are digging deep into their supply chain to get to know more and more about the operations being executed at different stages of their supply chain. This knowledge of each and every part of the supply chain is called tractability in supply chain management.
Also in the logistics used by the companies, they must know the location of the product at different point of time for different reasons. This knowledge is called logistics tractability.
Example: take example of Maggie. When the controversy of lead being more than the allowed limits broke out and Maggie was banned in India by FSSAI, they had to take back the product from the shelves and from different locations in their supply chain. Traceability of the quantity of product at different locations at different time helped it to complete the operations efficiently. So traceability is very important for food producers.
Similarly, Volkswagen may have to take back the cars from Indian markets when the recent news broke out of it being cheating from a long time. Traceability will be very important in this case and hence for other automobile companies also.