In today's complex business landscape, downstream companies face a daunting challenge when it comes to supply chain traceability. The market is flooded with countless platforms, each claiming to be the ultimate solution. Yet, no single platform seems to cover all sustainability aspects comprehensively. To make matters worse, procurement professionals find themselves bombarded daily by salespeople, each vying for precious time to showcase their latest tech offerings. The result? An overwhelming sense of choice paralysis and a growing frustration with the seemingly never-ending quest for the perfect traceability solution.
However, the truth is that effective supply chain traceability doesn’t always require cutting-edge technology. Often, the most effective solutions are those that leverage existing tools. In this article, we’ll explore four practical solutions, as well as ways to adapt these approaches to your requirements, whether you’re in retail, services, or manufacturing.

Things to Consider
Before diving into the various tech approaches, it's crucial to consider several factors that will influence your choice:
Budget: Your financial resources will play a significant role in determining which solution is most appropriate for your company.
Time and Human Resources: Consider the time and personnel required to onboard suppliers onto platforms and analyse the collected data.
Category Risk: If you're seeking traceability, it's likely that your category is already high-risk. If not, carefully evaluate whether you truly need extensive traceability measures.
Your Position in the Supply Chain: Your place in the supply chain will affect the type and depth of traceability you require.
Your Stage in the Traceability Process: Whether you're just starting out or looking to enhance an existing system will impact your choice of solution.
With these considerations in mind, let's explore four practical tech approaches for supply chain traceability.
1. Excel-Based Solutions
Situation: Excel-based solutions are ideal for companies that need to collect specific, structured data from suppliers, especially when industry-standard templates are available. They're particularly relevant for businesses starting their journey in supply chain due diligence or those in industries with specific reporting requirements.
Advantages:
Low cost and widely accessible
Familiar interface for most users
Customizable to fit specific needs
Easy to share and collect data from suppliers
Can include built-in data validation and formatting rules
Allows for offline work and easy file sharing
A prime example of an Excel-based solution is the Conflict Minerals Reporting Template (CMRT). Developed by the Responsible Minerals Initiative (RMI), this template is widely used by companies to gather information about the use of conflict minerals (tin, tungsten, tantalum, and gold) in their supply chains.
However, Excel-based solutions may not be suitable when dealing with very large volumes of data, requiring real-time collaboration or instant updates, needing advanced data analysis or visualisation capabilities, managing complex, multi-tier supply chains, or requiring stringent data security measures.
Best Practices for Excel-Based Solutions:
Always use the latest version of the template
Implement data validation rules to ensure data quality and avoid having to clean the data later
Provide clear instructions to suppliers on how to complete the template
Set up a systematic process for sending out, collecting, and analysing the templates
Utilise Excel's advanced features like macros or Power Query for data consolidation
Regularly update your supplier list and resend templates as needed
Store completed templates securely and maintain version control
Use Excel's analysis tools to identify trends or issues in the collected data
When implementing an Excel-based solution, ensure all relevant staff are trained on how to use and analyse the template. Develop a clear process for following up with suppliers who haven't responded, and consider how you'll aggregate data from multiple completed templates. Prepare for optimal use of the collected data in your broader due diligence efforts and think about how you'll handle updates or changes to the template over time.
2. Basic Database Systems
Situation: Basic database systems are suitable for companies that have outgrown spreadsheets and need a more structured way to manage supplier data, product information, and traceability records.
Advantages:
Better data organisation and relationships between different data points
Improved search and filtering capabilities
Ability to handle larger volumes of data
Enhanced data integrity and reduced errors
Popular examples of basic database systems include Microsoft Access and Airtable. These tools offer more robust data management capabilities than spreadsheets while still maintaining a relatively user-friendly interface.
However, basic database systems may not be suitable when dealing with extremely large data sets (millions of records), requiring advanced real-time collaboration features, or needing complex data analysis or predictive modelling.
Best Practices for Basic Database Systems:
Start with a clear data structure and define relationships between different data points
Implement user access controls to maintain data security
Regularly backup your database to prevent data loss
Create user-friendly forms for data entry to minimise errors and improve consistency
3. Mobile Data Collection Apps
Situation: Mobile data collection apps are ideal for companies conducting frequent on-site supplier audits or needing to collect data from various locations in the supply chain.
Advantages:
Real-time data collection and synchronisation
Reduced paper use and manual data entry errors
Ability to capture photos, signatures, and GPS locations
Works offline, syncing when internet connection is available
Popular examples in this category include Fulcrum and KoboToolbox. These apps allow field teams to collect data on mobile devices, often with offline capabilities, streamlining the process of gathering information from diverse locations.
Mobile data collection apps may not be suitable when all data collection happens in office environments, when dealing with highly sensitive data that requires stringent security measures, or when complex calculations or data processing are needed at the point of collection.
Best Practices for Mobile Data Collection Apps:
Design intuitive, streamlined forms for easy mobile use
Ensure proper training for all field users to maximise efficiency and data quality
Implement data validation rules to ensure data quality at the point of collection
Regularly update and maintain the app and associated hardware to ensure smooth operation
4. Supply Chain Visibility Platforms
Situation: Supply chain visibility platforms are ideal for companies with complex, multi-tier supply chains who need to gather and manage data directly from numerous suppliers. They're particularly relevant when transparency and collaboration across the entire supply chain are crucial, such as in industries with strict regulatory requirements or those prioritising sustainability and ethical sourcing.
Advantages:
Centralised data collection from multiple suppliers
Improved visibility across multiple tiers of the supply chain
Standardised data formats and collection methods
Real-time updates and alerts on supplier changes or issues
Ability to conduct supplier assessments and audits through the platform
Enhanced collaboration and communication with suppliers
Scalability to handle large numbers of suppliers
Examples in this space include Transparency-One, Sedex, and EcoVadis. These platforms allow suppliers to register, input their data, and share it with multiple clients, reducing the burden of repetitive information requests.
However, these platforms may not be suitable when working with a small number of suppliers, dealing with suppliers who lack digital capabilities or internet access, operating in an industry with highly sensitive proprietary information, or working on a limited budget, as these platforms can be costly.
Best Practices for Supply Chain Visibility Platforms:
Clearly communicate the value proposition to suppliers to encourage adoption
Provide thorough training and support for suppliers using the platform
Start with key suppliers and gradually roll out to others to manage the implementation process
Use the platform's analytics capabilities to identify risks and improvement areas
Regularly review and update the data requirements to ensure relevance
Integrate the platform data with your internal systems for comprehensive analysis
Encourage suppliers to keep their information up-to-date for real-time visibility
Use the platform to foster collaborative relationships with suppliers, not just for data collection
When implementing a supply chain visibility platform, ensure it aligns with your specific industry requirements and standards. Consider the onboarding process and how user-friendly the platform is for suppliers. Evaluate the platform's data security and privacy measures, assess its ability to integrate with your existing systems through APIs, and consider the level of customer support provided by the platform vendor.
As we've explored, there's no one-size-fits-all solution for supply chain traceability. The right approach depends on your specific needs, resources, and the complexity of your supply chain. Whether you're starting with Excel spreadsheets or implementing a comprehensive supply chain visibility platform, the key is to choose a solution that aligns with your company's goals, capabilities, and growth trajectory.
Remember to consider your budget, available time and human resources, category risk, position in the supply chain, and your current stage in the traceability process when selecting a solution. Start with what you can manage effectively, and be prepared to evolve your approach as your needs and capabilities grow.
Implementing effective supply chain traceability is a journey, not a destination. It requires ongoing commitment, regular reassessment, and a willingness to adapt as technologies and best practices evolve. By taking a thoughtful, step-by-step approach, you can build a traceability system that not only meets your current needs but also positions you for future success in an increasingly transparent and accountable business world.
If you're looking to integrate traceability into your broader Responsible Sourcing program or need assistance in engaging with suppliers, don't hesitate to reach out at info@beeaware-consulting.com or via our contact form. We're here to help you navigate the complexities of supply chain traceability and find the solution that best fits your unique needs.
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