External traceability refers to tracing of products between players in the supply chain. With the help of identification numbers, lot/batch numbers, and trade documents, products can be traced both from the suppliers and the client’s end.
What is the difference between external traceability and internal traceability?
Traceability refers to two different categories of tracking systems: internal traceability and external traceability.
Internal traceability refers to the capacity to research a product’s or item’s past within a particular company or facility. This comprises tracking details like the place, date, and time of each stage of the production process, as well as the personnel or equipment involved. For quality assurance, process improvement, and adherence to internal standards, this data can be used.
External Traceability: The capacity to track a product’s history and origin as it travels through the supply chain from the manufacturer to the final consumer is known as external traceability, on the other hand. This includes documenting details like the place, date, and time of each process step as well as the individuals or groups engaged. Supply chain management, regulation compliance, and quality control can all benefit from this data.
What is the benefits of traceability?
Traceability, whether internal or external, provides a number of benefits including:
Quality control: Traceability systems allow companies to track and monitor the quality of their products and identify any issues that may arise. This helps to ensure that products meet the required standards and reduces the risk of recalls or customer complaints.
Compliance: Traceability can help organizations meet regulatory requirements and ensure compliance with industry standards.
Supply chain management: Traceability systems provide visibility into the entire supply chain, allowing companies to monitor and optimize the flow of goods and materials.
Food safety: Traceability in food industry allows to track the food item from farm to table, helps to identify the source of contamination and prevent food-borne illnesses.
Product Recalls: In case of any issue with a product, traceability systems allow companies to quickly identify the affected products and remove them from circulation.
Cost savings: By identifying and addressing issues early on, traceability systems can help companies save on costs associated with product recalls, lost sales, and damage to their reputation.
Business continuity: Traceability systems allows organizations to maintain the continuity of their operations, by being able to quickly identify and resolve any issues that may arise.