4. Enhancing operational efficiencies. While whole-chain traceability is about better collaboration with external trading partners, the internal gains are abundant as well. By leveraging standards and achieving supply chain visibility, companies benefit from enhanced operational efficiencies, such as better inventory management, more accurate ordering, and improved product availability. Shipping and receiving accuracy may also be another area optimized by implementing standards-based traceability programs.
There is also a current need to reduce supply chain inefficiencies by decreasing total delivered costs (TDCs) in order to remain competitive and successful. TDCs are important in optimizing supply chain planning and decreasing them can maximize a company’s profitability. The industry is currently collaborating on the best approach for utilizing new technologies and revamping specific business practices to improve operational efficiencies by identifying gaps and opportunities where leveraging GS1 Standards can lead to a positive impact on TDCs.
While most companies have some level of traceability in place, some industry sub-sectors are further along in implementing traceability processes than others. Through industry collaboration and education, companies using proprietary or outdated paper-based systems will see the benefits of improved traceability—rather than leave themselves vulnerable to human error and the potential for dangerous and costly mistakes. Ultimately, adopting standardized traceability processes means a more sustainable business outlook, and a way to continue moving forward.
Fernandez is the vice president of retail grocery and food service for GS1 US. She can be reached at firstname.lastname@example.org.