Track and Traceability

Track and traceability is no longer a nice-to-have, but a necessity in complex modern supply chains. In production, traceability is crucial to ensure that all processes and products are transparent and traceable. The questions “who” and “when”, in relation to the production, storage, transportation, receipt, consumption, and disposal are made transparent. This is made possible through innovative technologies like the Internet of Things (IoT), blockchain, big data solutions, and AI. IoT devices and sensors can monitor the location, condition, and status of products throughout their lifecycle, providing real-time data for traceability. Radio Frequency Identification (RFID) and machine-readable codes like QR codes and barcodes are used for tagging and tracking products and materials.

There are two types of traceability: Chain traceability and internal traceability.

Chain traceability, also known as external traceability, refers to the ability to track a product and its components through the various stages of the supply chain, from raw material extraction to the consumer. This involves documenting and verifying the journey of a product as it moves between different supply chain stakeholders such as suppliers, manufacturers, distributors, and retailers. Chain traceability ensures that every stakeholder in the supply chain can access relevant information about the product’s history, including its origin, production processes, and distribution channels. This is crucial for quality control, regulatory compliance, and ensuring consumer trust. Chain traceability helps in identifying and addressing issues like contamination, counterfeiting, and fraud by enabling swift recalls and providing transparent product information.

Internal traceability, on the other hand, refers to the ability to track a product within a single organization or a specific part of the supply chain. It involves monitoring the flow of materials and components through various stages of the production process within a company. Internal traceability systems record data such as batch numbers, processing dates, and quality control results. This way, the movement of products within an organization can be precisely tracked. Order number tracking is an example of internal traceability.

Both products and processes are traceable. While the physical movement of a product can be traced, the processes related to the product are also traceable. A Requirements Traceability Matrix (RTM) is used to enable the traceability of requirements and tests in product development, for example. This is further explained in the sections below.

A Requirements Traceability Matrix (RTM) is a software development and project management tool used to ensure that all project requirements are tracked throughout the lifecycle of the project. In an ideal supply chain, an RTM is created very early in the project lifecycle, during product development.

Traceability systems such as an RTM are used to ensure traceability of artifacts, test cases and other important elements. By mapping processes and tracing data, companies can improve the quality and safety of their products. Traceability makes it possible to establish links between different stages of development and production. This leads to better traceability and a clearer context for all parties involved.

An RTM is typically used in industries that require traceability in order to prove compliance with standards or regulations, such as the aerospace, automotive, and medical device industry. These industries use embedded systems that combine both hardware and software.

For example: In the medical device industry, an RTM is used by developers to prove that medical devices are compliant with Food and Drug Administration (FDA) and International Organization for Standardization (ISO) regulations, and are safe for patient use.

There are three types of traceability within the RTM model: Forward, backward, and bidirectional traceability.

Traceability is becoming increasingly important not only for consumers, but also for manufacturers. It contributes to sustainability for companies in modern supply chains. Traceability solutions are enablers of circular economy. This involves tracking a product throughout its entire lifecycle. This allows companies to optimize resource use, reduce waste, and improve recycling processes by providing detailed information about the origin, application, and status of materials. By knowing where materials come from and how they are used, companies can implement more efficient recycling and reuse strategies. This way, waste is minimized and resources are conserved.

There are certain protocols for circularity transparency. These include United Nations Economic Commission for Europe’s (UNECE) traceability standards for sustainable clothing and footwear, and the GS1 Global Traceability Standard, for example.

IoT traceability solutions involve a combination of various hardware and software components that work together to track and monitor products and materials throughout their lifecycle. Different hardware and software are required for each respective IoT technology used.

RFID-based traceability solutions use RFID tags and wireless RFID readers. RFID tags are small devices that store data about the product they are attached to. The RFID readers are devices that emit radio waves and read the data stored on RFID tags. On the software side, RFID middleware and asset management systems are typically used. The RFID middleware processes and filters data from RFID readers before sending it to enterprise systems. IoT asset management systems store and analyze data from RFID tags, providing insights into inventory levels, asset locations, and movements.

An NFC-based traceability solution uses NFC tags or devices, in combination with NFC readers, NFC management apps, and product authentication systems. A BLE-based system uses BLE beacons, BLE gateways, beacon management software, and location tracking platforms. LoRaWAN-based traceability solutions use LoRaWAN sensors and tags, LoRaWAN gateways, LoRaWAN network servers, and remote monitoring platforms.

Traceability systems typically include software solutions that enable the collection, storage and evaluation of data. These tools are often part of a comprehensive tool chain that covers various aspects of production and development. An important element are test case management tools that ensure that test cases are linked to requirements and other artifacts. Source code management systems enable the traceability of changes and their relation to specific requirements. Process modeling and documentation tools also play an important role in ensuring the mapping and traceability of processes. By using these tools, companies can build a comprehensive network of tracking and traceability.

The hardware and software required depends on the type of IoT technology used.

Traceability solutions are on the rise in many industries. According to the market research platform “Gitnux”, the global market for track and trace solutions is expected to reach 7.4 billion USD by 2028. 98 percent of automotive manufacturers plan to increase the use of track and trace technology by 2030. Traceability software is being used by 30 percent of produce companies. 55 percent of companies surveyed claim that track and trace technology is a necessity in order to stay competitive in logistics. In fact, the logistics sector accounted for the largest market share of the track and trace market in 2020 at 34.7 percent.

Traceability typically involves industrial labeling and identification for asset tracking throughout supply chains in all industries. Traceability is commonly part of IoT asset management solutions.

Traceability is an important part of digitalization in logistics. Shipments are tracked in real-time, and the movement of goods can be traced throughout the supply chain. In cold chains, track and trace solutions that use sensor technology are used to ensure that temperature-sensitive products stay within required temperatures during transit (temperature monitoring). This applies to many industries, such as healthcare, and food retail, for example.

As part of digitalization in agriculture, IoT-based track and trace solutions are used to monitor and document the journey of agricultural products from farm to final customer. This process involves recording detailed information about each stage of production, including planting, cultivation, harvesting, processing, and distribution. Traceability systems in agriculture track data such as the origin of seeds, use of fertilizers and pesticides, farming practices, and environmental conditions. This comprehensive documentation helps ensure food safety, quality, and compliance with regulatory standards.

Track and trace systems support counterfeit protection measures in healthcare, retail, and in production and construction. Products with unique identification numbers can be tracked and traced at any point in the supply chain. This makes it much harder for counterfeit products to enter the supply chain.

In the healthcare industry, traceability enables the counterfeit protection of pharmaceuticals, as well as the recall management of defective or harmful medication batches. This is part of digitalization in healthcare.

Part of the digitalization of the automotive industry is the use of the Internet of Things (IoT) to track components from production, to assembly. Defective car parts can be easily recalled with a track and trace solution in place. Traceability is also important for car tires. In 2000, there was a significant number of tire recalls in the US due to defects. As a result, the Transportation Recall Enhancement, Accountability, and Documentation (TREAD) Act was implemented, and the traceability of tires is a requirement for tire manufacturers. Radio Frequency Identification (RFID) transponders are embedded in tires to enable track and traceability throughout the tire lifecycle. This supports tire recycling and circular economy.

Track and trace solutions optimize inventory control and management, enable anti-theft-protection, and automate replenishment in retail stores. This ultimately results in improved customer service and satisfaction. In food retail, food traceability ensures food safety and quality control. This is all part of digitalization in retail.

Traceability also plays an important role in software development by enabling the linking of requirements, source code, and system tests. This leads to better traceability and quality assurance in development projects.

The following real-world examples show different traceability solutions in different supply chains, each using wireless IoT technologies.

The future of traceability is being shaped by several emerging trends that promise to enhance the accuracy, efficiency, and scope of tracking in supply chains.

One significant trend is the increasing integration of blockchain technology with IoT devices. Blockchain provides a secure, immutable ledger for recording transactions, which, when combined with IoT, can ensure that every step of a product’s journey is transparent and tamper-proof. Another trend is the development of more sophisticated AI and machine learning algorithms that can analyze vast amounts of traceability data to predict potential disruptions, optimize logistics, and improve decision-making processes. Additionally, the increasing adoption of 5G networks will enable faster and more reliable data transmission, enhancing real-time tracking capabilities. Sustainability and regulatory pressures are also driving advancements in traceability, with a growing emphasis on tracking environmental impact and ensuring compliance with evolving regulations.

Despite its numerous benefits, implementing traceability with IoT comes with several challenges. One of the main challenges is data security and privacy. The vast amount of data generated by IoT devices needs to be protected from cyber threats. Ensuring data privacy can be complex, particularly when data is shared across multiple stakeholders.

Another challenge is integration and interoperability. IoT devices and systems often need to be compatible with existing infrastructure and with each other, which can be technically challenging and costly. The high initial costs and investment required for deploying IoT devices and supporting infrastructure can also be a barrier for some companies. Additionally, the management and analysis of large volumes of data generated by IoT devices require advanced analytical tools and skilled personnel, which can be resource-intensive. Ensuring reliable connectivity and power supply for IoT devices, especially in remote or harsh environments, can be a significant logistical challenge.

Addressing these challenges is crucial for the successful and widespread adoption of IoT-enabled traceability solutions.

The future of traceability is being shaped by innovative technologies like blockchain, AI, and ML, as well as growing sustainability concerns. These trends are enhancing supply chain transparency, efficiency, and responsibility.

Artificial Intelligence (AI) and Machine Learning (ML)

As AI and machine learning algorithms become smarter, companies are able to analyze larger volumes of traceability data in order to predict disruptions and optimize logistics. Decision-making will be further improved. The continued advancement and integration of AI and ML in traceability systems will enable more proactive and dynamic management of supply chains.

Blockchain Technologies

Blockchain is emerging as a future trend in traceability due to its ability to provide a secure, immutable, and transparent record of transactions. As supply chains become more complex and global, ensuring the integrity and authenticity of data is crucial. The adoption of blockchain is expected to grow as companies seek to improve transparency and accountability in their supply chains.

Sustainability

Sustainability is becoming a central focus in the future of traceability as businesses and consumers increasingly prioritize environmental responsibility. Traceability systems are evolving to track not only the movement of products but also their environmental impact, including carbon footprints and resource usage. The concept of a circular economy is becoming increasingly important in modern supply chains.