What is product traceability in the retail sector?

The word product traceability is increasingly common in the business environment; its definitions may vary depending on the context, but in essence, we can understand it as the ability to track or follow a product, as well as its components, along the entire supply chain.

This tracking is not limited to knowing where a product is, but involves identifying and recording key information that enables control processes to be improved. In this way, it becomes a fundamental tool to guarantee the quality, safety and reliability of what we produce and deliver.

In this article, we will delve into the concept of traceability and its strategic role within the supply chain.

What is product traceability in the retail sector?

When we talk about traceability in the retail sector, we mean that a well-implemented system must be in place, both internally and externally, to ensure that the traceability of products and their components is reliable and accurate.

Other sectors that manage products with potential impact on the consumer must also have rigorous traceability systems. Within the retail sector, there should be effective traceability.

For example, the cosmetics, automotive and even the construction sectors are areas where detailed control of product tracing is equally necessary.

A traceability system needs two elements to be truly effective, and in general terms:

• On the one hand, a reliable information recording system is required at all critical points of the supply chain.
• On the other hand, technological tools that allow this information to be consulted quickly, clearly and with no margin for error.

To better understand how traceability is managed in practice, we will now look at the different types that exist, as well as the procedures that can be applied in each case.

Types of product traceability

To fully understand the concept of traceability, it is necessary to analyze the different types that exist. These classifications can be made from different approaches, one of them being the point in the supply chain where the products to be controlled are located.

According to the point in the supply chain

In the first place, we find the external backward traceability, also known as downstream. This type focuses on identifying and recording all the information related to the raw materials or products that arrive at the company, as well as the data of their respective suppliers.

Thanks to this approach, it is possible to know what product has been received, who it came from, when it was received and what has been done with it once inside the organization.

Then there is internal traceability, which can be applied both backwards and forwards. This type of traceability makes it possible to follow the path of a product within the company, either from its point of use or destination to its internal origin, or in the opposite direction.

The objective is to know, for example, which inputs were used to create a new product, what that new product is, when it was modified, divided or mixed with others, and how it has evolved within the production system.

Finally, within this classification, there is external forward traceability, also called bottom-up traceability. Here, the focus is on tracking the goods that leave the company and go to the customer or end consumer.

This type of traceability makes it easier to identify who the recipient is, to which customer the product was sold and when the sale was made. In other words, it makes it possible to trace the path of products once they leave the company.

Depending on the product control unit

Another criterion for classifying traceability has to do with the unit of control applied to the products being traced.

One of the most common is batch traceability, used mainly in industries such as food and pharmaceuticals. This approach makes it possible to trace products manufactured in groups or batches, which is key to consumer safety.

Thanks to this system, it is possible, for example, to efficiently identify and recall defective or dangerous products.

On the other hand, unit product traceability goes one step further, although it does not exclude batch traceability, it adds an extra level of precision. This type of traceability makes it possible to track individual products, which represents a major advantage in terms of security and authenticity.

Finally, geospatial traceability represents the most recent innovation in this field. Thanks to today's geolocation technologies, this type of traceability makes it possible to know the exact location of a product in real time as it travels through the supply chain.

It is a key tool in sectors such as logistics and transportation, where live tracking is no longer a luxury but a quality standard.

Product traceability methodology

In the management of a traceability system, whether at the product or batch level, the principle applies that the value of the information obtained is directly proportional to the information entered.

In other words, what you sow is what you reap, and in this case, the greater and more precise the information collected, the greater the benefit for the whole system.

In this sense, the "traceability methodology" is defined as the set of practices and procedures that ensure that measurements and data records are accurate, consistent, integrated and adapted to current standards and regulations.

This approach ensures that traceability data is completely reliable and that information can be entered and collected in an integrated manner throughout the supply chain.

Strengthen your supply chain traceability with London Consulting Group

In a business environment where efficiency and transparency are key, having a traceable supply chain is no longer an option, but a necessity.

At London Consulting Group, we understand this, and therefore, we have developed a proven methodology that begins with a detailed diagnosis of each critical point within your supply chain, identifying areas of opportunity related to control, visibility and traceability of products.

Once the improvement points are identified, we proceed to the design and implementation of practical and customized solutions.

With London Consulting Group, the traceability of your products becomes a competitive advantage. Whether to comply with regulations, improve service quality or increase customer confidence, we offer comprehensive solutions that adapt and scale according to the size and complexity of your operation.

More than a consultant, we are your strategic ally, accompanying you every step of the way to ensure that your supply chain not only works, but that it drives your company's growth through more efficient, traceable and profitable processes.