Sustainability is evolving from isolated voluntary commitments within organizations to a data-driven topic integrated into core business operations. In other words, a value-driven industry transformation is underway. Organizations must adapt to this shift to ensure future capabilities and meet new sustainability requirements.
I had the privilege of participating in The Outdoor Summit in Stockholm – an event for the outdoor industry – where I discussed why traceability in the value chain is crucial for ensuring compliance. Since this information is relevant beyond the outdoor industry, I’ve summarized some key points I presented. These include what to consider if you want to begin working on traceable value chains for your business.
Collaboration for traceability
Actors in the outdoor industry, among others, face significant challenges due to upcoming EU regulations that tighten requirements in areas like environment, sustainability, and chemical usage.
Some of the major challenges include:
- Expanded requirements for product traceability and transparency
- Requirements for recyclable and circular materials
- Extended producer responsibilities and waste regulations
As you might infer, a traceable value chain is essential not only to meet these demands but also to satisfy consumers’ increasingly strict transparency expectations. However, achieving traceable value chains is not something a company can accomplish quickly or independently—it requires collaboration with actors across the entire value chain.
How to achieve traceability?
Traceability data is a key component of the digital transformation of value chains. It involves tracking and documenting a product’s lifecycle across the value chain, from production to end consumer and recycling. Traceability data includes details about the product’s origin, manufacturing process, transportation, and storage.
To enable traceability in the value chain, interoperability is essential. In simple terms, this refers to the ability of different systems, devices, applications, or products to connect and communicate seamlessly without requiring additional user adjustments. The exchange of information between actors must occur in a way that ensures data is received and interpreted correctly by all parties.
At GS1, we collaborate with users to develop standards that facilitate interoperability between information systems, ensuring smooth data flow between trading partners and consumers. GS1 standards and services enable all parties in the value chain to identify, collect, and share data that helps establish a product’s sustainability credentials.
Implementing traceability in practice
Effectively implementing traceability in the value chain requires a structured approach. Here are some key steps for a successful integration of traceability data:
- Internal coordination: Ensure the project is prioritized internally, with clearly defined goals and a dedicated team of diverse competencies. GS1 Sweden offers an interactive methodology called GS1 TraceWay to design and implement interoperable traceability systems in the value chain.
- Value chain mapping: Begin by mapping the entire value chain, from raw materials to the end consumer. Identify all actors and processes involved to create a clear overview of where traceability data needs to be collected.
- Technology and tools selection: Choose the right technological solutions that support interoperability, such as systems for data collection, storage, and analysis that comply with GS1 standards.
- Education and engagement: Train employees and partners on the importance of traceability and their role in achieving it. Organizational-wide commitment is crucial for fostering a culture of transparency and responsibility.
- Continuous improvement: Treat traceability as an ongoing process. Implement systems to continuously work with and evaluate traceability data, enabling you to identify areas for improvement and adapt to changing requirements.
- Industry collaboration: Share experiences and best practices with other industry actors. By collaborating, companies can learn from each other and drive the development of traceability solutions forward.
- Participate in standardization efforts and influence standards in user groups at GS1 Sweden, the Swedish Institute for Standards (SIS), or other standardization organizations.
By following these steps and utilizing GS1 standards, companies can not only meet legal requirements but also build customer trust and contribute to a more sustainable future. Traceability is an investment in both business success and sustainable development.
A sustainable value chain
Traceability data is more than a trend; it is a necessity for navigating the complex and rapidly evolving world of sustainability and regulatory compliance. Through collaboration and effective system implementation, we can not only meet new requirements but also create a more transparent and sustainable future for all value chain actors. Want to learn more about how GS1 Sweden can support your digital journey toward compliance? Contact me via the form below, and I’ll share how you can benefit from standards.
Author: Lena Coulibaly, Senior Sales & Client Relations Manager, GS1 Sweden
Want to know more about how GS1 standards can help you in your digital compliance journey? Fill in the form below and I will get back to you shortly.
Lena Coulibaly, Senior Sales & Client Relations Manager, GS1 Sweden