Digital Traceability is transforming the way firms across business verticals develop, run, and manage their supply chains and logistics operations.

Supply chain traceability is rapidly becoming a source of competitive advantage. By making product information accessible to customers transparently, digitally-equipped supply chains help companies win customer confidence and loyalty. Whether it’s Amazon’s extensive web capabilities or Unilever’s SAP Green token, companies today are going the extra mile to ensure the digital traceability of their products and practices. No wonder, estimates predict the size of blockchain technology to help enhance traceability in the supply chain to reach $25 bn by 2032. If you are wondering how digital traceability can help you build trust and find favour with potential customers, here are the complete details:

Enhanced Transparency

Transparency is an outcome of making complete product information available and accessible to all stakeholders in the value chain. Digital tools enable this traceability through real-time data logs which collect and record information as products move from the sourcing stage to the selling point.

Elevating Efficiency

By streamlining supply chain processes, digital traceability can boost operational efficiency by a significant margin. Digital tools enable automated data collection, processing, and evaluation protocols, thereby minimizing manual processes in the supply chain. The reduction in human intervention, in turn, results in faster processing and decreased errors, leading to significant improvement in operational efficiency. Take, for instance, the German Shipping company DHL. The global leader in the Logistics space uses advanced digital solutions to trace its supply chain and optimize its routing operations. In addition, the use of digital technologies has enabled the brand to run preventive maintenance, resulting in a significant 30% reduction in transit times. The company has also been able to achieve an on-time delivery rate of 95% which is extraordinary given the global scale of the operations it runs worldwide.

Delivering Quality

With real-time tracking capabilities, firms can ensure strict quality controls for their products. Digital traceability also helps companies identify quality issues and solve them proactively by working with concerned stakeholders. Automobile firms can identify vehicles through their unique identification numbers (UIN) and send targeted messages to owners about their vehicles, service needs, or other updates. This digital traceability is specifically significant in recalling vehicles by pinpointing only those cars that need repair work. Further, digital traceability helps in fixing quality issues by identifying the origin of the fault and offering specific, actionable information to stakeholders to plug the quality gaps.

Meeting Compliance

By automating the tasks of compiling and sharing records, digital traceability can help firms meet regulatory compliance efficiently. The automation of compliance management also reduces errors and makes the entire process secure, efficient, and reliable in the long run. Traceability software can capture compliance data at source and allow firms to link it to their orders, products, or promotion campaigns. The data can also be propagated to various stakeholders to meet both strategic and operational requirements from time to time.

Business Insights

Digital traceability can help firms garner insightful information on several crucial parameters. From understanding consumers to managing inventory, digital tools can help firms discover new business opportunities while ensuring transparency in their supply chain operations. Supply chain traceability can ensure real-time product tracking with the help of geofencing of the products. The location-based service can set virtual boundaries and help firms combat the infiltration of fake products in the supply chain. The insights from this traceability data can be used to refine business processes and achieve excellence in value creation and delivery processes.

Digital traceability is the backbone of successful supply chain and logistic practices. Firms with optimum supply chains benefit from enhanced transparency, elevated efficiency, and better quality management. Digital traceability also equips companies with efficient compliance management and business insights, helping them foster their brand image and customer loyalty. As we head into the future, the significance of digital traceability of supply chains is going to reach a whole new dimension. Brands with digitally equipped supply chains will create a win-win situation for all stakeholders and emerge as favorites in their categories of operation. It’s high time that companies start taking the digital traceability of their supply chains seriously, or else they might fail to meet the rising expectations of their customers and allied stakeholders.

Author: Adithya Kasibhatla, Chief Operating Officer, Genefied

Disclaimer: The views expressed in this article are solely those of the author and do not necessarily reflect the opinions or policies of ObserveNow Media. The author is solely responsible for ensuring the accuracy, completeness, and validity of the information presented, encouraging readers to independently verify and seek professional advice if needed.