What is Traceability in Inventory Management? What Makes It Important?

Introduction
In today’s world, many organizations may have to deal with inventory inaccuracies, which can lead to a decrease or increase in the inventory level. Teams will also have to face quality control issues when the inability to trace products can hinder seeking products with defects. Moreover, the organization’s reputation may be at stake when inadequate product tracking leads to non-compliance with industry standards.


Table of Contents

  1. What is Traceability?
  2. What Are The Benefits Of Traceability?
  3. Improve Traceability with Smarter Tagging Solutions


Key Takeaways
In this article, you will know about traceability and how it can benefit organizations that have always managed inventory. 

 

What is Traceability?

What is Traceability?

When professionals manage inventory at a certain location, they are involved in the systematic tracking of goods within an organization. The task commences right from the time they get the items, the moment they’re used, and when they dispose of the items or products. Moreover, the team may also be involved in maintaining a record of products or materials as they move along the supply chain. By assigning unique identifiers, such as barcodes or serial numbers, professionals can also keep track of the journey from procurement to distribution. However, before choosing labels, they consider the environmental conditions that assets are exposed to. In that case, they ensure that they select labels that are durable and can be read even under inclement conditions. Let’s check the importance of traceability in inventory management.

Traceability is always considered important for equipment used in food processing and B2C products. But when the manufacturers have to maintain a list of assets like pipes and boilers, the unique identifiers serve to be useful. Based on the business model, traceability can help you gain visibility into finished products, machinery, various components, and more. Professionals will also be able to gather data on product authenticity, asset locations, and inspections when they start using scanning solutions. However, it’s always a good idea to digitize traceability and follow certain practices because the conventional approach can lead to errors. 

Let’s check out how organizations can benefit from traceability. 

 

What Are The Benefits Of Traceability?

What Are The Benefits Of Traceability?

There are many benefits that traceability offers to organizations. A systematic approach to tracking products or items can help companies stay competitive in the business landscape. 

Management Of Product Recalls

Now, just imagine how tough it can be to recall an item when you’re managing a large inventory at your company. But, through traceability and unique identifiers, you can trace the product and its location as well. This approach is also beneficial when a set of products has been affected for some reason or another. Once professionals are able to trace affected products, they move ahead to mitigate consequences and prevent a brand’s reputation from getting ruined. 

Increased Accuracy counts

If your team hasn’t been able to maintain the inventory count, then many errors are likely to occur. But, with the help of traceability, you can avoid errors that humans can commit. Besides, you will certainly have better control over stock levels and reduce instances of inventory running out of stock. Traceability will also help in optimizing different inventory management practices. This will ensure what’s happening in real-time is in sync with the different systems in place. 

Reduce Asset Loss

It’s quite evident that a range of products may not be present in the inventory. Such a situation will arise whenever you’re managing a large company. However, by offering visibility into product sourcing, traceability can foster transparency. You can also hold someone accountable if assets or products are not found all of a sudden. Towards the end, you will certainly mitigate the chances of financial losses in the long run. 

Increases Asset Lifespan

Maintaining the assets at the right time can also be predicted by traceability. While traceability can enable the team to keep track of products or assets, it also makes it easier for companies to locate the assets. In those instances, you can confirm whether there’s a need for maintenance for the assets. If you adhere to a schedule, then you can gain the most from your assets and thereby minimize financial losses. 

Stay Compliant

Traceability systems can also help organizations comply with industry standards and various regulations. As tracking of products helps to present the details of product origin and distribution, it can lead to easier audits. Regulatory inspections can further be taken ahead with systems that help in tracking. 

 

Improve Traceability with Smarter Tagging Solutions

Finally, smart tagging solutions can certainly help improve traceability for organizations. But, before moving ahead with anything, it’s essential to implement advanced technologies and strategies. These provide accurate product tracking across the supply chain. To achieve this, companies should think of assigning unique serial numbers to different items. This will aid in the accurate tracking of products, particularly during product recalls. Ways beyond, organizations can set up IoT devices to capture details like product location, condition, and important information. 

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