If you trade or procure agriculture commodities in 2022, supply chain traceability is essential. Top manufacturers and savvy consumers want to know where commodities come from. Are they ethically sourced? Organic? Sustainably farmed?
Without traceability, it’s impossible to guarantee the products you purchase have the credentials and quality you require.
The Benefits of Supply Chain Traceability
Supply chain traceability tracks products from origin (farm, distributor, trader) to destination (manufacturer, producer, retailer, consumer). Food manufacturers and commodity traders need to ensure the commodities they purchase, often months before they are shipped, match the ones they receive. They need to be sure the quality remains consistent from purchase to destination. If the quality changes during shipping, they need to adjust pricing to ensure they pay the right price for the commodities they receive.
Traceability also provides visibility into shipping issues. With real-time traceability, you know the moment a shipment is delayed. That insight can enable you to change production schedules or divert other resources to minimize disruptions to your business. Supply chain disruptions were an enormous challenge in 2021, and companies need to be prepared for these types of disruptions to continue.
Supply chain traceability improves collaboration between trading partners. When you have visibility as commodities move across the supply chain, both trading partners are aware of complications or delays at the same time. You can work together to ensure everyone knows exactly what is happening and what steps are being taken to resolve issues. You improve the integrity of your supply chain and collaborate better because everyone has the same current, accurate information.
Perhaps most importantly, traceability is essential in the unfortunate situation of product recalls. In 2021, the United States Food and Drug Administration reported 427 food and cosmetics recall events involving 1,026 products. Each recall involves potential harm to consumers, and the sooner companies can track the contaminated products to the source, the sooner the situation can be resolved.
Automating Manual Processes
Manually tracking commodities through the supply chain requires a lot of time and resources. If you are trading or procuring many commodities across several geographies, it becomes nearly impossible. Commodities are constantly moving through the supply chain, generating a lot of data. There is just too much information to gather and record manually.
Additionally, many industries have regulations around supply chain traceability. They require accurate records. Automating processes ensures more accurate, current information is reported to required parties.
CTRM with Traceability
Commodity management systems like iRely’s cover the entire trading lifecycle for commodity-based businesses, including procurement, logistics, trading, processing, distribution, and integrated risk management. Traceability is integrated into the commodity management software.
This built-in traceability provides a forward and backward view of commodities, enabling transparency from contract to final receipt. You can verify the grades, quality levels, and sustainability certifications of all commodities by tracking certified stock and knowing the source of each commodity.
If you need traceability to ensure the quality or providence of your commodities, contact iRely today. Our modern CTRM system provides the traceability you need.