Traceability Use Cases by Industry
Join the traceability movement
Companies in all sectors are faced with both a global regulatory trend towards end-to-end corporate responsibility and the increasing demand for transparency. The consequences are going to be huge for brands and suppliers: even if a company is indirectly in scope, it is likely to be impacted and may even be legally liable.
With Tilkal, companies can prove due diligence actions, and verify and demonstrate compliance.
Food & Agriculture
Food supply chains lack traceability resulting for example in deforestation, inefficient product recalls and safety issues. The industry is now poised with significant shift toward sustainable food systems and traceability has the potential to offer transparency to both food manufacturers and consumers, providing insights into the origin and production processes of food.
Operational drivers are enabling batch-level recalls and analyzing product quality data up- and downstream for swift responses to safety concerns, and mapping deforestation risks to promote sustainability and ethical sourcing practices and ensure regulatory compliance.
Reputational drivers are answering consumers' calls for transparency and accountability. By showcasing product origin and validating claims on environmental and societal impacts, businesses can bolster trust and credibility, meeting growing expectations for authenticity and sustainability.
"Controlled traceability, it means taking concrete action for a fair and sustainable cocoa sector by improving the living and working conditions of our communities of producers, by contributing to the protection of the environment, in particular by fighting against deforestation, and also by preserving important terroirs and flavors of cocoa."
Vincent de Schryver, Digital Transformation Leader, Savencia Gourmet Group
Main regulatory drivers:
EU Corporate Sustainability Due Diligence Directive (CSDDD), EU Corporate Sustainability Reporting Directive (CSRD), EU Deforestation-Free Regulation (EUDR), EU Forced Labor Regulation, French Textile Regulation (AGEC), German Supply Chain Due Diligence Act (LkSG), US Uyghur Forced Labor Prevention Act (UFLPA), New York Fashion Act, Norwegian Transparency Act.
Apparel & Fashion
The textile industry suffers limited visibility into sub-tier suppliers and subcontractors, which makes it difficult to trace the origin of materials and ensure compliance with social and environmental standards. Lack of transparency also hinders efforts to address issues like forced labor and environmental degradation.
ESG drivers are to gain visibility and control over the social and environmental impact of the entire value chain, to anchor ESG statements in the operational reality of the supply chain, and to eliminate forced and child labor through traceability.
Reputational drivers are to meet transparency expectations from consumers, and to generate engagement based on a positive brand image.
"Traceability and transparency of our supply chain is one of the key pillars of our CSR strategy. Our objectives are to establish precise visibility of our value chain, to guarantee transparency on our production processes, and thus ensure respect for human rights in the chain supply."
Aigle, Non-Financial Reporting 2022
Questions about challenges specific to your sector?
Health & Cosmetics
Like other industries, the Health & Cosmetics industry faces challenges related to the opacity and intricacy of its supply chain. Obtaining precise visibility into the origin, production, and transformation of ingredients poses difficulties, hindering the assessment and control of social and environmental impacts, as well as the fulfillment of consumers' expectations for safety and transparency.
Product safety drivers are to detect fraud and grey markets, to monitor and ensure quality control, and to reduce health risks.
Reputational drivers are to ensure ethical and sustainable sourcing, to prove product origin and ESG claims, and to meet transparency expectations from consumers and create engagement.
Main regulatory drivers:
EU Corporate Sustainability Due Diligence Directive (CSDDD), EU Corporate Sustainability Reporting Directive (CSRD), EU Forced Labor Regulation, Anti-Waste Law for a Circular Economy (AGEC), German Supply Chain Due Diligence Act (LkSG), US Uyghur Forced Labor Prevention Act (UFLPA), EU Deforestation-Free Regulation (EUDR), EU Medical Device Regulation.
"Using Tilkal is an excellent way to bring change in an industry like cosmetics by pushing brands to take more responsibility and rethink their supply chain to ensure full traceability."
Maxime Finaz, Managing Director, Energie Fruit
Main regulatory drivers:
EU Critical Raw Minerals Act, EU Digital Product Passport, EU Corporate Sustainability Due Diligence Directive (CSDDD), EU Corporate Sustainability Reporting Directive (CSRD), EU Forced Labor Regulation, US Uyghur Forced Labor Prevention Act.
Mining & Minerals
Long and complex, supply chains related to the extraction, production, and processing of minerals also suffer from a lack of visibility and control, and are often associated with the significant impact they can have on the environment and with human rights challenges (conflict minerals).
Operational drivers are to monitor exposure risk by area, by supplier, by mineral, by finished product, to prove due diligence efforts, and to respond to new market constraints set by actors such as the London Metal Exchange for example.
Reputational drivers are to ensure ethical and sustainable sourcing, to avoid conflict minerals and forced labor, to prove ESG claims and to meet transparency expectations from end clients.
"From day one, we've known that our ability to trace mica to and from end-users and mines would be key to our success. Blockchain helps us monitor our supply chains, identify where & who RMI can further support and make responsible mica sourcing a reality in the communities we serve."
Fanny Fremont, Executive Director, The Responsible Mica Initiative
Industry & Manufacturing
Industrial supply chains, particularly in sectors like automotive, batteries or aeronautics, are highly complex because of the variety of raw materials, minerals and components they use, which multiplies the risk, particularly in terms of supplier visibility, safety and environmental and social impact.
Operational drivers are to prove origin and manufacturing processes from raw material to end product, control recycling processes, monitor exposure risks in real-time and prove due diligence efforts.
Reputational drivers are to avoid involvement with conflict minerals, forced labor or environmental issues, and prepare for the EU Digital Product Passport.
Main regulatory drivers:
EU Green Deal, EU Critical Raw Minerals Act, EU Digital Product Passport, EU Corporate Sustainability Due Diligence Directive (CSDDD), EU Corporate Sustainability Reporting Directive (CSRD), EU Forced Labor Regulation, German Supply Chain Due Diligence Act (LkSG), EU customs regimes (preferential origin, inward processing).
"Regulations such as the Duty of Vigilance, the European Green Deal or the Supply Chain Due Diligence Act, as well as European customs regimes, are moving towards greater accountability and transparency for manufacturers and brands. To be compliant, traceability must be justified."
Daher