How Distributors Can Integrate Traceability Data to Meet Regulations

Integrating traceability data offers numerous benefits to distributors, including helping them remain in compliance with regulatory demands.

For certain industries, such as pharmaceuticals, food distribution, or chemical manufacturing, regulations demand traceability. Organizations in those industries must be able to pinpoint every single step in their processes for safety reasons. Traceability can be an important element for distributors in other industries, as well, providing the power to track and share data about production with ease.

Defining Traceability

“Traceability, in supply chain traceability, is the ability to identify, track and trace elements of a product or substance as it moves along the supply chain from raw goods to finished products,” according to TechTarget. Traceability can also be applied to the process of distribution, following products from the manufacturing plant to the consumer’s hands. It’s about being able to identify every step in the process.

The modern production and distribution environments are interwoven, complex, and require high level digital tools in order to function smoothly and successfully. The last few years have revealed that the systems are perhaps more fragile than many experts realized, and are vulnerable to natural disasters, shortages, viruses, and other unexpected events.

Integrating traceability data into manufacturing and distribution systems provides two valuable functions: creating records related to the manufacturing process and making it easier to share data across the organization. When it comes to maintaining regulatory compliance both functions are not only valuable—they are necessary.

Benefits of Traceability

When you can track every step of the process of manufacturing and distribution, you can identify weak areas, bottlenecks, or disruption. In the aftermath of an unexpected event that disrupts the supply chain, you can pinpoint the problem area, create contingency plans, and strengthen your overall market position. Other benefits of integrating traceability data include:

Remaining compliant with regulations

In highly regulated industries, traceability is required. Not implementing it puts your organization at risk of fines, or worse.

International regulations matter

In today’s world, most businesses are international, and must comply with local regulations. That means a company headquartered in Green Bay that does business in Berlin must comply with the regulations of the European Union, as well as those of the United States.

Regulations are changing

New initiatives around the world, some of which are expected to be in effect by 2024, will require many more industries to implement traceability data. Textiles and construction materials are two sectors expected to be affected by these new regulations. If you integrate traceability data into your systems now, you can do so without the pressure of new regulations—and gain other benefits.

Measuring environmental impact

Many businesses have sustainability goals. Traceability data can help you measure the environmental impact of your organization.

Integration is Key

When you can integrate systems rather than adding on new, discrete systems, things go more smoothly. Traceability can be one additional data point in your ERP, giving decision-makers a more complete picture of your business.

We can help make traceability part of your business, which can save costs, keep your organization compliant, and strengthen your supply chain.