Top 5 traceability tools for your business

Implementing a procurement traceability system is essential in order to manage procurement processes and streamline the flow of information. Traceability tools allow you to track the status, location, position, and history of products. They aim to improve the effectiveness of requirements management, logistics, control, analysis, and monitoring of stock from point of order to the receipt of products. How is it done? Find out about our top 5 traceability solutions for your business. 

What is procurement traceability? 

The traceability of business procurement is becoming increasingly important. It started in the industrial sector and is now being used in the service industry. Having a traceability system gives you a complete history, a means of verification, and an objective view of your stock and the products ordered from suppliers. Each step is monitored to analyse why, how, and when products leave the company. As a result, the data from this process allows companies to allocate the expenses of each department in a relevant way. There are several solutions and ways of tracing product purchases. 

Tracking: internal and external traceability 

Tracking is one of the most common solutions. It gives companies the possibility to monitor the status of purchases by unit load or by batch through recorded control verification and identification. Every stage of product tracking, from the start of the project to its final destination in the departments, is known. 

Internal traceability concerns the handling of products. It is done using SKU codes or specific tools such as WMS software for warehouse stock management. 

If products are to transit through or are distributed in multiple countries, external traceability is vital. It allows you to have a universal and codified language that can be understood by everyone involved, so products can be referenced and located at any time. 

Traceability solutions using procurement identification and coding 

Product identifiers and unique codes are some of the most powerful solutions available. They provide a standard language so that all departments can access the data they need in real-time. To do this, traceability systems must be put in place. 

The barcode (UPC3, EAN4) is the most widely used identification method in the world. To track procurement and simplify product management, verification, and logistics, the RFID system5 is another possibility. This tag can integrate and send data using radio waves. The data transferred must be channeled into specialised software, regardless of the chosen tool. 

Barcode traceability solutions 

Barcodes have proven their worth for tracking, controlling, and managing stock. Barcode labels generate codes using specific coding and encryption protocols. This solution is easy and quick to implement. To get the information you need about a product, you simply scan the barcode label. 

This system requires specific equipment: dedicated printers to print the labels, and CCD scanners or laser scanners to display the product data. 

RFID traceability solutions 

The RFID system allows data to be stored and retrieved remotely without the need for direct verification. RFID cards, RFID tags, and RFID badges all use the same principle. They are equipped with a chip that is connected to an antenna, which stores the data. The data is then sent to an RFID reader. 

A large amount of data can be stored, and traceability is faster and more efficient. Like with barcodes, specific equipment is used to manage the identification medium: 

• A RFID reader, fixed or mobile, for reading the data contained in the chip; 

• A RFID printer for editing, printing, or, depending on the model, encoding RFID tags; 
• RFID software for managing and processing the data sent by the RFID chips. 

Data processing software, a key traceability solution 

For high-quality procurement traceability, monitoring, and control, it is crucial to have software tools that gather all the data related to product movements in one place. This digital medium collects and stores data in an organised manner, processes it, and shares it with the various actors involved. 

An ERP solution is one of the most common tools. This type of solution gathers all the data that is shared by the company’s departments. Other powerful tools exist, like WMS, a powerful software solution that optimises warehouse flows. In the case of TMS7 tools, they allow for more efficient organisation and planning of product delivery routes. 

Procurement traceability has become a key requirement in companies. It ensures that each and every purchase made is verified, stored, and monitored. By choosing a traceability solution that is suited to their challenges and size, companies ensure that communication and information sharing between departments will be more efficient. The company improves its stock management and profitability and avoids placing unnecessary orders that lead to extra costs. Traceability solutions allow companies to identify trigger points and to downsize their procurement. 

Procurement traceability has many advantages. These tools give procurement departments a more strategic vision. They allow companies to track product orders, as well as manage their status in order to control procedures, by overseeing the procurement process and making it more secure.