Investing in a digital traceability system

What is a digital traceability system?

A digital traceability system uses technology to track a product as it moves along the supply chain. It captures a range of data to help consumers and supply chain partners identify and trace the product’s history, where it was produced and its distribution journey. It can confirm provenance and product claims such as whether it’s sustainable, certified Halal or organic.

Digital traceability systems for agricultural products can assist Victorian producers to answer consumer questions and strengthen the state’s reputation as an exporter of world leading, premium food and fibre products. Traceability can protect producers and consumers against food fraud in international markets and improve supply chain efficiencies.

Businesses using a digital traceability system, such as blockchain, can choose what data they want to share and who can see it. The business is responsible for providing access to their data and making sure all agreements and permissions along the supply chain meet contractual requirements and privacy legislation.

Do I need to invest in a new traceability system?

New traceability technologies are evolving at a rapid rate making it difficult for supply chain participants to decide whether, or how, they invest in a traceability system. The limited ability to share information between systems has been identified as a barrier to effective supply chain traceability and this interoperability needs to be front of mind when adopting any new system.

The question often asked is: 'If I invest in traceability solutions, will it provide the information needed by my supply chain to give me a return on investment?'

Before making the decision to invest in a digital traceability system, it’s important to understand why a business may require it in the first place.

Which traceability system is right for my business?

Once the decision to start using a traceability system has been made, it’s important to make sure the chosen system is interoperable, meaning it talks to other systems already used in the business and along the supply chain.

Getting started

A five-step quick start guide has been developed as a practical starting point for anyone wanting to increase traceability measures in their business. The guide includes information, tips, decision trees and other resources.

Quick start guide
Page last updated: 25 Jan 2023