Feature Tracing Out Your Strategy Supply Chains Need a Traceability Plan to Meet Consumer Demand By Sonia Sellan T raceability is a concept as old as, well, maybe not time, but old. Evidence for it dates back to the 1930s when proof was sought that grapes from a bottle of French Champagne were indeed from the Champagne region of France. However, with the bar being raised and people de- manding so much more information on almost all products, an effective trace- ability strategy is critical. With consumers and regulators look- ing for anything from a lower carbon footprint to proof of certified organic status, ocean sustainability and more, the push is on to ensure the supply chain can help trace these verifications. Traceability in the supply chain is es- sentially start-to-end use – the ability to trace all processes from the procure- ment of raw materials to production, consumption and finally, disposal. According to sustainability and supply chain strategist Pierre Courtemanche, “there is a lot of confusion about trace- ability. It is a rigorous system. It is a tool, for example, to support a claim, such as you don’t want child labour in your supply chain. So, the traceability of the inputs could be a tactic to support your claim that it is child labour-free.” “In food and beverage production, consumer health is your goal, and one of your objectives would be to recall dan- gerous products. Traceability would be the tactic to achieve a product recall ef- ficiently and rapidly,” he says. Joanne Lebert, executive at Impact, an organization that moni- tors natural resources management in Africa, sees the present complexity of traceability as one of its more signifi- cant challenges. “First, we have to follow the com- modity, so providence,” she explains. “As well as following the money, for financial rigour and corruption or money laundering. But what’s really of growing focus in the mineral sec- tor in the last 10 years is supply chain due diligence, which goes far beyond traceability. “It’s about understanding the context under which a particular ore or com- modity has been extracted, traded and brought to the international market,” she adds. “So, it’s more like labour condi- tions, environmental conditions, making sure there are no armed groups, child labour, knowing who you’re dealing with and understanding the context to make sure you are not doing harm.” GREENWASHING IS BEING HIGHLY PENALIZED. director Traceability is also valuable for finding inefficiencies, meeting new or existing regulations and verifying claims. In ad- dition, it is sometimes legislated, such as the serialization of pharmaceutical industry packaging. Courtemanche says that people con- fuse traceability with transparency and visibility. However, the complexity of the supply chain needs all three of these. SUPPLY CHAIN CANADA • ISSUE 1 2022 • 15
