Supply chain incontrovertibly plays a vital role in business. It makes the flow of goods and services from the point of origin to the consumers efficiently with the optimization of costs, time, and service level. However, making this is never easy; there are thousands of issues that happen in the supply chain every day. For most of the current supply chains, the main problem comes from the information flow, which is crucial to the effectiveness of a supply chain.
From the downstream of the supply chain, an enterprise has to forecast the demand of consumers to estimate the outcome for the production. No one can predict precisely what consumers want in the future, but if the forecast is far different from the actual demand, this will lead to over waste or a short of products that cause a significant loss to the company. Therefore, the supply chain manager needs secure data for forecasting.
Secondly, the way that most companies operate their supply chain now is not practical; the operator can not track the products correctly in transport and producing. Furthermore, it will cause losses in production and delivery. Consequently, the companies cannot follow the standards for storing and transporting accurately and continuously may harm the product and cause fees for callback products, make an adverse impact on consumers’ health and safety of using the products, later, cause a critical effect on the company reputation.
Lastly, due to the inadequate of information, items, or products is hard to retrieve back when there is a problem with the product quality or quantity loss.
Traceability system can make product data become integrity.
All the information derived from every event in the supply chain has to be recorded and gathered for tracking and tracing purposes, or further, used for improving and helping the entire supply chain more efficient. Therefore, businesses need a system to record data whenever the products are transferred physically through the supply chain seamlessly and can retrieve easily. That is why companies need Traceability. With a traceability system, the supply chain manager can oversee all the activities and quickly identify the root of the issue when it occurs to solve it right away and minimize the losses.
Having a Traceability system is not only help in tracing back the information, but it also brings other value to the businesses. Firstly, it helps organizations better manage risks, with seamless data record from actual events, the supply chain manager can promptly know the current status of the moving or producing products and anticipate potential risks may occur and make the right decisions to prevent it.
Secondly, all the recorded data about how consumers buy products, how much, and when they buy will provide a better basis for forecasting and demand planning, thus, makes the demand forecast closer to actual demand. Another benefit of having a traceability system is cost saving; uninterrupted information flow helps to eliminate waste of production, material loss, and other opportunity costs. Hence, ethical Traceability also reduces product callback costs or warranty costs by maintaining product quality and quickly implementing the returning process.
Traceability is also helping businesses on sales and marketing in generating revenue and strengthening brands. Consumers now concern seriously about the safety of the products and need more information about how the journey of products they consume. According to CFG x Futerra Expert Survey, 70% consumers are most interested in transparency about products, 55% of them demand more information on social, health, environment and safety issues about consumable products before making a buying decision.
Also, in this research, 73% of consumers will be loyal and buy more products from the brand that is transparent about their products. That means Traceability is the key to earn customers trust and loyalty. By giving consumers transparent information from Traceability system, companies make them more confident in buying and using their products, thus, generate more revenue and build a sustainable competitive advantage over competitors. Otherwise, a transparent Traceability system is also proof of product quality, which contributes to the success of new market penetration and exploration locally and globally.
Traceability is helpful to business; it can be a critical competitive advantage of enterprise which supports Supply Chain, Marketing, and Customer satisfaction. In another way, investing and implementing Traceability still makes Business leaders get headaches. Applying Traceability requires lots of time and money in building the system including data system, hardware devices, server; and training IT team and operation teams. Businesses have to do most of these things by themselves, and they will face the difficulty of arranging resources for this purpose.
However, there is another way for businesses to using Traceability in their companies without doing all these things on their own. With WOWTRACE, a blockchain-based traceability solution for all kind of companies, the answer is developed as a Baas (Blockchain as a Service) with full Traceability function and offered as subscribed monthly or annual packages. The packages are suitable for all business needs from a tiny start-up to a large enterprise and customizable based on the request.
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