Track smarter, stay compliant

Product traceability software helps manufacturers and brands track materials, components, and finished goods across the supply chain. It supports faster recalls, regulatory compliance, and better supplier oversight.

As regulations tighten and sustainability demands grow, traceability is now essential for staying compliant and competitive.

This guide explains what to look for in a solution and how product information management (PIM) can strengthen traceability from source to shelf.

• What is a product traceability software?
• Who needs a product traceability software?
• 6 key benefits of product traceability software for manufacturers and brands
• What features should you look for in a product traceability solution?
• How does product information management (PIM) support traceability?
• What does a product traceability implementation plan look like?
• What compliance standards should you be aware of?
• What ROI can you expect from product traceability software?
• Build a traceability process that scales with your business

What is a product traceability software?

Product traceability software (PTS) is a digital system that enables businesses to track and document the flow of products, parts, and raw materials throughout their supply chain. It links every stage, from sourcing and production to distribution and sale, using unique identifiers like barcodes, serial numbers, or lot codes.

This software is designed to answer three key questions:

• Where did this product come from?
• Where is it now?
• Where has it been?

For manufacturers, retailers, and brand owners, PTS provides the visibility needed to:

• Respond quickly to quality issues
• Meet industry regulations
• Prove ethical sourcing or environmental claims

Core capabilities

A typical product traceability solution includes:

• Lot and batch tracking – Links every product to its specific production run or batch.
• Forward and backward tracing – Tracks movement both upstream (to suppliers) and downstream (to end users or retailers).
• Data capture and logging – Records events such as manufacturing steps, inspections, or hand-offs.
• Searchable audit trails – Enables fast access to product histories during investigations or recalls.

Not a replacement for ERP or WMS

While traceability may overlap with ERP or warehouse systems, it serves a distinct purpose. PTS focuses on the history and movement of products, not just their inventory levels or transaction records.

Who needs a product traceability software?

Product traceability software supports compliance, risk reduction, and transparency across various industries. Below are examples of how different sectors apply traceability to solve critical business challenges.

Food and beverage

In food manufacturing and distribution, traceability helps track ingredients from suppliers to end products.

Key uses include:

• Allergen tracking to prevent cross-contamination
• Shelf-life monitoring to reduce waste and meet freshness standards
• Compliance with FSMA and global food safety regulations

Pharmaceuticals

For pharmaceutical companies, product safety and legal compliance are non-negotiable.

Key uses include:

• Batch and lot tracking for accurate recall execution
• Serialization to meet global drug traceability mandates
• Counterfeit prevention through secure, auditable data

Consumer electronics

Electronics brands use traceability to manage complex supply chains and maintain product quality.

Key uses include:

• Component-level traceability for parts sourced globally
• Warranty validation based on serial numbers and service history
• Reverse logistics tracking for repairs, returns, or recycling

Apparel and footwear

As sustainability becomes a requirement, fashion and footwear brands are turning to traceability to prove claims and meet environmental targets.

Key uses include:

• Sustainability audits to meet ESG and ESPR requirements
• Transparency across fabric, dye, and labor sourcing
• Digital product passports to support circular economy models

6 key benefits of product traceability software for manufacturers and brands

For manufacturers and brands, product traceability software delivers measurable gains across operations, compliance, and customer engagement. Here are six ways it adds value:

1. Regulatory compliance

Traceability helps meet strict legal requirements in industries like food, pharma, and electronics. It ensures records are accurate, time-stamped, and accessible during audits or inspections. This is essential for staying aligned with standards like FSMA, FDA 21 CFR Part 11, and ESPR.

2. Faster recalls and risk mitigation

When issues arise, being able to trace affected batches or components quickly can limit damage and reduce recall costs. PTS supports targeted recalls by identifying exact lots, dates, and destinations, saving time and protecting revenue.

3. Counterfeit prevention

Serialized tracking, secure supplier data, and real-time validation help prevent fake goods from entering the supply chain. This is especially valuable in high-risk sectors like pharmaceuticals and electronics, where counterfeit parts can carry serious consequences.

4. Quality assurance

PTS gives teams visibility into every production step. If a defect appears, the root cause can be traced to a specific batch, shift, or supplier. This allows for tighter quality control and fewer issues downstream.

5. Sustainability reporting

Traceability supports accurate reporting on raw materials, carbon impact, and production methods. This helps meet ESG goals, prepare for digital product passport regulations, and respond to consumer demand for sustainable goods.

6. Customer trust and digital product passports

Transparent product histories build trust. Traceability data can feed into DPPs, QR codes, or packaging labels, giving buyers a view of where products come from and how they were made.

What features should you look for in a product traceability solution?

Not all traceability tools offer the same level of visibility or control. To get the most value, manufacturers and brands should look for features that support real-time tracking, data accuracy, and integration with existing systems.

Here are the essential capabilities to include in your selection criteria:

1. Real-time lot and batch tracking

Track the movement of specific lots or batches as they pass through suppliers, factories, warehouses, and distribution centers.

2. Barcode and RFID integration

Enable faster, automated data capture across multiple checkpoints using barcode scanners or RFID tags. This reduces manual errors and speeds up data entry.

3. Audit trails

Maintain a complete, time-stamped record of all actions taken—what happened, when, and who was involved. This is key for compliance, recalls, and internal audits.

4. Supplier collaboration

Allow suppliers to upload documentation, certificates, or lot data directly into your system. This improves upstream transparency and supports faster issue resolution.

5. API connectivity

Make sure the system can connect with existing tools like ERP, PIM, MES, or recall portals. API compatibility allows for smoother data flow and reduced duplication.

6. Traceability dashboards and analytics

Use visual dashboards to monitor traceability performance, detect bottlenecks, and track KPIs. Built-in analytics help teams spot trends and take action quickly.

How does product information management (PIM) support traceability?

Product traceability is only as reliable as the data behind it. That’s where Product Information Management (PIM) becomes critical.

A modern PIM system acts as the central hub for all product-related data, ensuring accuracy, consistency, and control across every channel and system.

Central source of truth

A PIM system organizes and manages detailed information about raw materials, ingredients, parts, and finished products in one place.

This reduces data duplication and ensures that all departments, from sourcing to compliance, are working from the same, verified records.

Attribute-level version control and supplier access

Traceability often depends on precise, component-level data. PIM allows for detailed attribute tracking, like origin, certification, and expiration dates.

It also provides portals for suppliers to upload and maintain their own data, reducing errors and improving visibility into upstream sources.

API syndication across systems

For traceability to function across the full product lifecycle, data must move seamlessly between systems. A PIM platform with open APIs can push structured data into external platforms like:

• ERP systems for inventory and manufacturing data
• MES platforms for production events and quality checks
• Recall portals for regulatory reporting
• Digital product passport systems for compliance and transparency

Data flows cleanly and efficiently when traceability is powered by PIM, making it easier to track, report, and respond, wherever a product is in its journey.

What does a product traceability implementation plan look like?

Implementing a product traceability solution requires careful planning. To avoid disruptions and maximize adoption, teams should follow a phased approach that aligns with business needs and existing systems.

Here’s a five-stage roadmap that can guide implementation:

1. Data audit

Start by assessing current product data. Identify gaps, duplicates, outdated records, and inconsistent formats. Auditing ensures the traceability system is built on clean, reliable data and that every product component is properly documented.

2. Integration with existing tech stack

Connect the traceability software to core systems already in use, such as ERP, PIM, MES, or quality management tools.

Use APIs to sync product identifiers, production records, and supplier data, allowing information to flow across platforms without manual updates.

3. Pilot program

Run a controlled test with a limited product line, facility, or region. This step helps uncover potential issues in real-time tracking, user adoption, or data accuracy. Pilots provide early feedback, so workflows can be adjusted before a full-scale launch.

4. Full roll-out

Expand the system across all relevant products, teams, and suppliers. Establish clear responsibilities, training plans, and documentation.

Coordinating with external partners is key to maintaining reliable traceability throughout the supply chain.

5. Optimization and reporting

Once live, monitor performance through dashboards and regular reports. Track KPIs such as recall speed, audit accuracy, and supplier compliance.

Use findings to refine workflows, improve response times, and support internal audits or regulatory reviews.

What compliance standards should you be aware of?

Product traceability is a requirement in many sectors. Whether you’re manufacturing food, electronics, or apparel, staying compliant with regional and industry-specific standards is critical.

Traceability software helps meet these demands through accurate data capture, real-time reporting, and audit readiness.

FDA: Food Safety Modernization Act (FSMA)

In the U.S., the FSMA requires food manufacturers to implement preventive controls and maintain records that support full traceability.

This includes lot-level tracking, recall readiness, and access to supply chain data within 24 hours during inspections.

EU ESPR: Ecodesign for Sustainable Products Regulation

The European Union’s ESPR sets product sustainability and traceability requirements, including the rollout of Digital Product Passports (DPPs).

Brands must track material origins, environmental impact, and lifecycle details to meet upcoming mandates.

Other sector-specific standards

• Pharmaceuticals – Regulations such as the U.S. FDA Drug Supply Chain Security Act (DSCSA) and EU Falsified Medicines Directive require serialization, tamper evidence, and full traceability.
  
• Automotive – Standards like IATF 16949 emphasize traceability for safety-critical parts and quality control.
  
• Electronics and batteries – EU regulations now require origin and composition data to support circular economy goals and prevent illegal sourcing.

What ROI can you expect from product traceability software?

Investing in product traceability software pays off in both operational efficiency and risk reduction. By improving visibility across the supply chain, teams can respond to issues faster, reduce manual work, and build stronger supplier partnerships.

Here are the key performance indicators (KPIs) to evaluate performance and results:

1. Recall response time

With real-time data and clear audit trails, recalls can be executed in hours instead of days. This minimizes product loss, protects brand reputation, and reduces liability costs.

2. Supplier compliance rates

Track which suppliers consistently meet documentation and quality requirements. A traceability system makes it easier to monitor performance and flag gaps early.

3. Incident reduction

More accurate tracking helps prevent issues tied to expired materials, counterfeit components, or incorrect shipments. Fewer errors mean fewer disruptions and lower risk exposure.

4. Customer satisfaction

Being able to show where a product came from, how it was made, or how it meets safety and sustainability standards can improve trust and boost post-sale confidence.

5. Time saved on audits and reporting

Automated data collection and centralized records reduce the time teams spend preparing for audits or generating compliance reports. This cuts overhead and speeds up response to regulatory checks.

With the right metrics in place, traceability software becomes more than a compliance tool—it becomes a driver for quality, accountability, and operational ROI.

Build a traceability process that scales with your business

Traceability isn’t just a response to regulation—it’s how brands stay accountable, efficient, and trusted.

From preventing costly recalls to supporting digital product passports, the right tools turn product data into a strategic asset. As supply chain demands shift, being able to act on reliable, connected information is what sets leaders apart.

Start building a traceability process that’s built to scale. Schedule a demo with Inriver and see what connected product data can do for your business.