Inventory management is one of the most important and complex activities for any company that is dedicated to the production or distribution of goods. Adequate inventory allows you to meet customer demand, reduce operating costs and improve business profitability.
To avoid these inconveniences, it is necessary to have a system that allows controlling and optimizing the flow of products from their origin to their final destination, that is, a traceability system.Traceability is the set of tools and methodologies that allow you to identify, record and track products throughout the supply chain, both internal and external..
Benefits of traceability for inventory management
Traceability has multiple advantages for inventory management, among which the following stand out:
Improves the accuracy and efficiency of inventory processes
Automates and streamlines the tasks of reception, storage, movement, dispatch and return of products, avoiding human errors, delays and duplications. In addition, it facilitates planning and control of inventory levels, avoiding oversupply or shortages.
Improve product quality and safety
Traceability allows you to verify compliance with quality standards and current regulations at each stage of the supply chain, as well as detect and correct possible defects, anomalies or risks. It also allows for effective management of returns, claims and guarantees, as well as implementing corrective or preventive measures in case of emergency.
Improve customer satisfaction and loyalty
Allows customers accurate and up-to-date information on the status and availability of products, as well as guarantee timely delivery and in optimal conditions. It also allows products to be customized according to customer preferences or needs, as well as offering quality after-sales service.
Improves business competitiveness and profitability
Reduces costs associated with inventory, such as storage, transportation, maintenance, insurance or obsolescence. It also allows you to increase income by increasing sales, market share and differentiation of the offer. In addition, it improves the image and reputation of the company, by demonstrating its commitment to quality, safety and social responsibility.
Types of traceability
Traceability can be classified into different types according to its scope and direction. Depending on their scope, the following types are distinguished:
Internal traceability.
It is the one that is applied within the company, covering all the processes and operations that are carried out on the products from the moment the materials or components are received until the finished products are shipped. Internal traceability allows you to control and optimize the flow of products within the company, as well as guarantee their quality and safety.
External traceability.
It is the one that is applied outside the company, covering all the processes and operations that are carried out on the products from when they leave the company until they reach the end customer. External traceability allows you to control and optimize the flow of products throughout the supply chain, as well as guarantee their quality and safety.
Depending on their direction, the following types are distinguished:
Upward traceability.
It is what allows you to trace the products from the end customer to the origin of the materials or components. Upward traceability allows us to know the history and origin of the products, as well as to identify and solve possible problems or complaints.
Downward traceability.
It is what allows you to trace the products from the origin of the materials or components to the end customer. Downward traceability allows us to know the destination and use of products, as well as verify and demonstrate their quality and safety.
How to implement traceability in your company
To implement traceability in your company, it is necessary to follow a series of steps that allow you to define, design, execute and evaluate a traceability system appropriate to your needs and objectives. These steps are as follows:
Analyze your current situation
The first step is to carry out a diagnosis of your company, identifying the products you want to design, the processes that intervene in their life cycle, the legal and quality requirements that you must comply with, the resources you have and the problems you want to solve or prevent with traceability.
Define your objectives and your scope
The second step is to establish what you want to achieve with traceability, what benefits you hope to obtain, what indicators you are going to use to measure them and what level of detail and coverage you want to achieve. You must also define the scope of application of traceability, that is, if you want to trace only your products or also those of your suppliers and customers, and if you want to trace only internal traceability or also external traceability.
Design your traceability system
The third step is to design the traceability system that you are going to implement, specifying the elements, processes, flows, roles, responsibilities, standards and protocols that make it up. You must also define the means and tools that you are going to use to identify, record, store, transmit and consult the traceability information, as well as to guarantee its integrity, security and accessibility.
Run your traceability system
The fourth step is to launch the traceability system that you have designed, carrying out the necessary actions to implement it, configure it, integrate it, test it and validate it. Alsoyou must train and sensitize people involved in the system, both internal and external, so that they use it correctly and commit to its objectives.
Evaluate your traceability system
The fifth step is to evaluate the operation and results of the traceability system that you have implemented, using the indicators that you have previously defined and comparing them with the objectives that you had set for yourself. You must also identify the strengths and weaknesses of the system, as well as opportunities for improvement and corrective or preventive actions that you must implement.
To facilitate the implementation of traceability in your company, you can count on the help of the appropriate technological solutions, which allow you to automate and simplify the tasks of identification, registration, monitoring and consultation of traceability information. Some of these solutions are the following:
Labels and codes
They are the means used to identify products in a unique and lasting way, through alphanumeric or graphic symbols that contain relevant information about the product, such as its name, its batch, its expiration date, its origin or its destination. Some examples of labels and codes are adhesive labels, RFID tags, barcodes or QR codes.
Readers and scanners
They are the devices that are used to read and capture the information contained in labels and codes, using optical or electromagnetic sensors that recognize the symbols and convert them into digital data. Some examples of readers and scanners are barcode readers, RFID readers, fixed scanners, or mobile scanners.
Traceability software
These are computer programs used to record, store, process, transmit and consult traceability information, through databases, interfaces, algorithms and protocols that allow data to be managed and analyzed efficiently and securely. Some examples of traceability software are ERP systems, WMS systems, CRM systems or RFID systems.
Traceability platforms
They are the comprehensive solutions that are used to implement and manage the traceability system in a global and centralized way, through the combination of traceability means, tools and software, as well as the connection and integration with the company’s information systems. and external agents. Some examples of traceability platforms are cloud solutions, blockchain solutions or IoT solutions.
Conclusion
Traceability is a key element for inventory management, since it allows you to control and optimize the flow of products throughout the supply chain, as well as guarantee their quality and safety. Traceability also has benefits for customer satisfaction and loyalty, as well as for business competitiveness and profitability.
To implement traceability in your company, you must follow a series of steps that allow you to define, design, execute and evaluate a traceability system appropriate to your needs and objectives. In addition, you can count on the help of the appropriate technological solutions, which allow you to automate and simplify the tasks of identification, registration, monitoring and consultation of traceability information.