The growing importance of traceability and materials resource planning

The growing importance of traceability and materials resource planning

Whatever the product, the ability to trace the origins of the materials it contains has become essential in recent years. More and more consumers want to have this information to hand at the push of a button but it is also vital in the supply chain.

No more so than in the food industry, which was still has the horse meat scandal of 2013 fresh in the mind. A recent report from IndustryARC, a research and consulting firm which focuses on cutting edge technologies, estimates that the global food traceability market, now growing at 8.1% per year, is expected to reach $14,601m by 2020.

IndustryARC said demand for food traceability is seen as a reaction to the adulteration of food as well as climate change. This has led consumers to want to know everything that happens to their food ‘from its origin to the plate’. 

The report said barcodes still currently have dominance in this area due to the ease of implementation. Technological advancements in automating traceability, however, are leading to companies investing in new technology, such as Radio Frequency Identification (RFID). IndustryARC says that it expects RFID to be the fastest growing technology in the traceability market between 2015 and 2020.

This growing need for traceability will have a knock on effect for any manufacturing company, whether that is in the food industry or not. Whatever the technology used, businesses need to ensure they can integrate these solution into their materials resource planning systems. They need to have the reassurance that they cannot just trace, but also efficiently report this information.

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