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Tracking and Traceability:
More Important All the Time

The need for greater supply chain clarity and visibility is growing.

Whether it concerns finding the source of foodborne illness or recalling faulty auto parts, global supply chain tracking requirements--right down to the ingredient or part level--are increasing. 

For example, in the food supply chain, the Food and Drug Administration's Food Safety Modernization Act will soon require more traceability. New mandates for tracing and tracking drugs are in the recently passed Safeguarding America's Pharmaceuticals Act. In the automotive and medical-device supply chains, recall-related tracking and tracing capabilities facilitate the notification of affected customers only.

Traceability requires three elements:

  • Adding a coded identifier to a part
  • Reading the code and recording its location as the item moves through the supply chain
  • Acquiring and managing all the data resulting from the process

For example, Zeltwanger Automation, which provides assembly and testing systems that are used in medical technology, the automobile industry, and in general industrial applications, produces 400,000 vacuum pumps every year. As each pump moves through the factory, it receives torque, oil pressure and flow tests. The actual values measured in the tests, along with a serial number and the date, are contained in a data matrix code etched on each part by a laser marking system. A barcode reader then captures the data and sends it to the company's IT system.

It's not new that machine vision-readable codes, radio-frequency identification (RFID) and barcodes enable a logistics partner like Ryder to track individual items--in real time--as they are picked up, transported and received by the customer. What is new is for the supplier and customer to be able to acquire that data coming from the logistics partner. Not only can the items be located in transit, but also a record of the plants and distribution centers they traveled through is created for all members of the supply chain.

All those records result in massive amounts of data. Widely used enterprise resource planning (ERP) systems such as systems applications products (SAP) are now being fortified with the ability to use all that data. Among other tasks, new applications can help a company link the diverse ERP systems used in its plants, pulling together data for the whole corporation and unifying product genealogies. And should a recall be required, emerging tracking and tracing technologies allow root cause analysis to be focused specifically on where the products were made or the source of their materials.

One of the greatest concerns of supply chain managers--the need for more supply chain clarity and visibility--is now being addressed by such new capabilities for acquiring and managing this granular real-time information.


The article you read was prepared for general information purposes by McMurry. These articles are for general information purposes only and are not intended to provide legal, tax, accounting or financial advice. PNC urges its customers to do independent research and to consult with financial and legal professionals before making any financial decisions.These articles may provide reference to Internet sites as a convenience to our readers. While PNC endeavors to provide resources that are reputable and safe, we cannot be held responsible for the information, products, or services obtained on such sites and will not be liable for any damages arising from your access to such sites. The content, accuracy, opinions expressed, and links provided by these resources are not investigated, verified, monitored or endorsed by PNC.