HGI: Implementing Traceability is Daunting, but it Doesn’t Have to be
This primer demystifies what traceability actually is, and details how to achieve it based on your company’s goals.
By MeiLin Wan of GenuTrace and David Uricoli of Gherzi USA
Key Insights
Traceability is becoming a business necessity, but companies first need to define what problem they’re solving before investing in technology, certifications or compliance programs.
Effective traceability starts with mapping supply chains, understanding where risks exist and building trusted supplier relationships—not simply collecting documentation or deploying digital platforms.
As UFLPA enforcement expands and new U.S. and EU regulations raise the bar for proof of origin, companies will need verifiable evidence to back sourcing claims before regulators or customers ask for it.
Responsible sourcing is an imperative for sustainable procurement practices. You must know your sources’ origins throughout manufacturing aka supply chain/value chain, from seeds to sales. Regulations demand that you must prove diligence on all levels. Due diligence is a careful review and assessment to identify risks, confirm facts and support informed decision-making. Traceability of all components of the entire product “bill of materials;” comprehensive list of all the raw materials, components, parts, and quantities required to manufacture, assemble, or build a product. So many companies are in the process of understanding what traceability means to them and how to incorporate into business processes without undue burden and costs.
That same confusion happens to entrepreneurs building traceability-adjacent businesses, sustainability managers stepping into a new role, sourcing teams suddenly handed a UFLPA, EUDR, or CSDDD compliance mandate, or founders trying to build responsible supply chains from day one. Traceability has become one of those words that everyone uses but is never defined in the same way.
Below we offer a practical orientation to help you understand what traceability is, where real complexity lives, and how to start building something that will prove diligence and improve over time.
