Track and trace systems are technologies and methods used to help businesses monitor the movement of goods or assets throughout the supply chain, from raw materials to the final delivery. Emerging standards and best practices in manufacturing and distribution place increasing responsibility on organizations to maintain full visibility over inventory, orders, and shipments.
Track and trace systems offer real-time visibility, optimized operations, regulatory compliance, and improved customer satisfaction while reducing losses due to theft, damage, or spoilage.
How Track and Trace Works
Track and trace systems rely on a variety of unique identifiers, including barcodes, SKUs, RFID tags, or GPS tracking devices. These identifiers capture data about products moving throughout the supply chain, such as location, condition, status, and other relevant information, providing immediate insights into inventory levels and supply chain performance.
By integrating track and trace with order release optimization strategies, organizations can better synchronize inventory availability with customer demand, improve order fulfillment accuracy, and fine-tune release schedules for just-in-time deliveries. This coordination not only reduces delays but also minimizes excess inventory and lowers costs across operations.
Benefits of Track and Trace:
- Real-time visibility
- Supply chain optimization
- Order release optimization
- Inventory management
- Compliance and regulation support
Why is Track and Trace Critical?
Track and trace systems are essential in industries where product integrity, safety, and compliance are paramount, including:
- Logistics and transportation
- Electronics and high-value consumer goods
- Pharmaceutical and medical devices
- Food and beverage
- High-value assets
Not only does it capture and analyze critical information about the location and status of items moving through the supply chain, but track and trace also supports warranty management by capturing SKU and serial number data, enabling efficient processing of returns, repairs, or replacements for high-dollar items such as laptops, televisions, home theaters, network devices, and printers.
Track and trace systems enable organizations to take responsive actions to inefficiencies throughout the supply chain, recognize and isolate counterfeit products, and improve product recall and return efficiency.
Regulatory Track-and-Trace Mandates
New regulations proposed by the Food and Drug Administration (FDA) require more stringent DC and supply chain track and trace in food, pharmaceutical, medical device, and nutraceuticals manufacturing and distribution.
