Traceability in the Logistics Sector: Technological Innovation and Efficiency

Traceability plays a fundamental role today, especially in the logistics sector, where it ensures optimization, security, and transparency in the supply chain.

In this article, we will explain what traceability is, how it is applied in the logistics sector, and the various types of traceability that exist. Additionally, we will examine the fundamental role of technology in this process and how traceability systems work, with examples that illustrate these concepts.

What is Traceability?

The concept of “traceability” refers to the ability to track and follow the journey of a product throughout the entire supply chain. This process includes recording and documenting information about the product, such as its origin, transportation history, storage, changes in status, or handling experienced during its transit.

Traceability is based on the collection and evaluation of information to safeguard the quality and integrity of products, as well as to provide answers to fundamental questions like: “Where does this product come from?” or “How did it get here?”

Application of Traceability in the Logistics Sector

In the logistics sector, traceability plays a crucial role in enhancing supply chain management. Some of the main benefits of implementing traceability in logistics include:

Increased Visibility: Traceability provides companies with a real-time and up-to-date view of the location and status of their moving products. This simplifies decision-making based on accurate information and allows for early detection of potential issues.

Improved Efficiency: By knowing the exact location of products, delivery routes can be optimized, and waiting times can be minimized, leading to greater operational efficiency and reduced costs.

Regulatory Compliance: Various sectors, such as the food and pharmaceutical industries, have strict regulations regarding product monitoring and traceability. Adhering to these regulations is essential to avoid penalties and ensure consumer safety.

Enhanced Quality: Traceability allows for the rapid identification of defective or contaminated products, enabling their removal from the market before reaching end consumers. This helps protect the company’s reputation and ensures product quality.

Types of Traceability in Logistics

There are several types of traceability, each adapted to different needs and sectors:

Backward Traceability: This type focuses on tracking a product’s path from its final destination back to its origin. It is crucial for identifying and recalling defective or potentially dangerous products, such as in food recalls.

Forward Traceability: This involves tracking the flow of a product from its origin to its final destination. It is essential for planning and optimizing distribution and delivery.

Internal Traceability: This type concentrates on tracking and managing logistical operations within a company, such as the flow of products within warehouses or production facilities. It enables efficient inventory management and helps reduce losses and waste.

External Traceability: This focuses on tracking a product as it moves through the supply chain, involving various participants such as suppliers, transporters, and distributors. It ensures greater transparency and collaboration throughout the chain.

Technology as a Key Element for Traceability

Technological advancements have enabled the development of increasingly sophisticated and efficient traceability systems. Some key technologies in this field include:

Barcodes and RFID (Radio Frequency Identification): These technologies associate specific data with products and assets, allowing for efficient and accurate reading. This simplifies the tracking and identification process throughout the entire supply chain.

Geographic Information Systems (GIS): GIS technology enables real-time visualization and tracking of product and vehicle locations on a map, facilitating route planning and fleet management.

Blockchain Technology: Blockchain offers an immutable and transparent transaction record across the supply chain, ensuring that every movement and change is securely documented and verifiable.

How Traceability Systems Work

Traceability systems collect data throughout the supply chain and store it in secure databases. This data includes information on the location, condition, temperature, and other relevant factors for the product. As products move through the chain, this data is updated in real-time, allowing companies and consumers to access accurate information about the product.

A concrete example of a traceability system is used in the food industry. When a batch of food is produced, it is assigned a unique traceability code. As products move along the supply chain, they are scanned at each stage, from production to transportation and delivery. If a problem is detected, such as a contaminated batch, its origin can be quickly identified, and it can be removed from the market, thus avoiding public health risks.

Examples of Traceability in Practice

A notable example of traceability in action is Amazon’s product tracking program. The company uses RFID technology in its warehouses to track the location of each product in real-time. This allows them to optimize inventory management and accelerate order picking and shipping processes, providing a more efficient shopping experience for their customers.

In the pharmaceutical industry, traceability is essential to ensure the authenticity and safety of medications. Barcodes and serialization are used to track the path of each medication, from its manufacture to the pharmacy. This helps prevent counterfeiting and ensures that patients receive legitimate and safe products.

Our Experience in Traceability for the Logistics Sector

At GeneXus Consulting, we have developed several solutions for the logistics sector, including notable implementations at Garmet (grain marketing and logistics), Ancap (National Administration of Fuels, Alcohol, and Portland), and INAC-SRGA (National Meat Institute – Supply Registration and Management System).

Transforming Logistics Processes from Field to Port

With Garmet, we developed a suite of mobile and web applications that optimized the organization’s logistics processes, providing competitive advantages for the company.

The applications digitalized operations related to the request for grain transport services by producers, the coordination of these services by Garmet staff, and the execution of services by truck drivers.

With the first version of the platform, launched in 2021, around 3,000 trips were managed, involving over 400 carriers and producers. Subsequent versions incorporated multiple updates, maintaining a focus on continuous improvement and innovation.

Electronic Travel: Digitalizing the Fuel Distribution Logistics Process

ANCAP (National Administration of Fuels, Alcohol, and Portland) is a government institution in Uruguay responsible for importing and refining petroleum, producing biofuels, food, asphalt, lubricants, Portland cement, and solvents, as well as managing the commercialization of natural gas and LPG.

GeneXus Consulting has supported ANCAP’s digital transformation, with a particular focus on logistics through the Electronic Travel program.

The primary objectives of the program are the automation and improvement of operations related to fuel dispatch, distribution, and delivery processes across ANCAP’s multiple facilities.

A web application was developed where clients submit product requests, and each carrier can schedule trips based on these requests. Additionally, truck drivers for ANCAP’s product carriers use a smart device application to view assigned trips and trip details.

Through this application, drivers can register their arrival at the plant (e.g., La Tablada), allowing the application to place them in the queue for entry. They receive push notifications when it’s their turn to enter the plant and proceed to the assigned loading bay.

Tracking Transactions in the Meat Industry

The Supply Registration and Management System (SRGA) is a system belonging to Uruguay’s National Meat Institute (INAC), designed to support the management model for meat and meat product transactions in the domestic market.

The system efficiently and quickly monitors the movement of goods, ensuring the quality of products that go through various health and fiscal controls, and providing complete transparency in commercial transactions.

The system records movements and changes of ownership. Each change of ownership involves a transaction, detailing the origin, destination, vehicle, products, sender and receiver, price, etc.

In this way, a record is maintained of all actors in the meat supply chain (butcheries, carriers, vehicles, distributors, plants, etc.).

Conclusions

Thanks to technology and traceability systems, companies can gain significant advantages in terms of efficiency, security, and quality. The successful implementation of traceability systems is crucial for maintaining competitiveness in an increasingly connected world that demands transparency and product quality.