What is traceability and how does it work?
Traceability has recently gained considerable attention in the food industry. A growing demand from consumers forced food producers to keep track of the product’s quality and origin. New developments in technology made this easier and more accessible. Other industries are now rapidly following. The ability to track every aspect of the manufacturing and distribution process has three key benefits; it increases supply chain visibility, improves quality control systems and reduces risk. By keeping a record of the entire production and distribution history and (selectively) disclose this information, suppliers are able to react to any issue.
Usually, the information trail about a product’s origin, production process or composition stops when a product is shipped from one company to another. The information stays within the so-called data silo. By opening and connecting these silos, it is possible to distribute information through all companies in a supply chain. Distribution usually happens through digital handshakes, in which information is shared and verified. Blockchain serves as the perfect technology to facilitate these handshakes, since the two parties on each side of the shake don’t necessarily have to trust each other.