Event-Based Traceability

Event-based traceability is the foremost methodology for tracking and tracing any product, including raw materials, finished goods, and products created by combining multiple inputs, throughout an entire supply chain. This methodology breaks down complex supply chains into a series of Critical Tracking Events (CTEs), like creation, shipping, or receiving, that are common to all commodities. The practice of recording predefined Key Data Elements (KDEs) at each of those events as a product moves through its supply chain is known as event-based traceability.

Instead of relying on static or summary data, event-based systems create a dynamic product history that reflects real-world product movements and transformations, not just planned transactions or batch records. Every supply chain actor logs the events they perform and maintains ownership of the data they generate. This reduces the need for centralized data repositories and enables real-time information that provides a granular view of product movement from origin to endpoint.

This approach is already used in diverse industries, like food, pharmaceuticals, and apparel, and can be applied to any physical goods. Leading global standards such as GS1’s Electronic Product Code Information Services (EPCIS) and the Global Dialogue on Seafood Traceability (GDST), as well as regional regulatory frameworks like the U.S. FDA’s Food Traceability Rule (FSMA 204), are built on event-based principles, offering structured guidance for implementation across industries.

Why Do We Use Event-Based Traceability?

Event-based traceability offers several benefits

Benefit	Description
Accountability	Every actor in the supply chain is responsible for owning, collecting, and sharing their own event data. This decentralized structure supports data accuracy and transparency by ensuring that each piece of information originates from the party most directly involved in the event.
Adaptability	Event-based traceability concepts can easily be applied across a diverse range of products and processes, supporting the use of shared standards. This makes it easier to digitize, exchange, and analyze data regardless of the type of product, market, or region.
Interoperability	When implemented with common data standards, event-based traceability systems enable seamless data sharing across different platforms, technologies, and organizations. This reduces duplication of effort and supports collaboration among supply chain partners.
Granularity	By capturing details at the individual event level, supply chain stakeholders can access a high level of specificity about product movements and transformations. This detailed chain of events makes it easier to pinpoint issues, verify claims, and understand exactly how a product moved through the supply chain.
Real-Time Data	Recording events as they occur allows for real-time tracking and monitoring of products.
Proactive Risk Management	The combination of accountability, granularity, and real-time data equips businesses to identify and address potential risks before they cause problems. Event-based traceability enables organizations to respond quickly to potential issues, such as compliance gaps, quality deviations, and supply chain-interruptions.

How Does Event-Based Traceability Work?

Every actor in the supply chain is tasked with recording the events they perform, and the event data is shared with trading partners or other stakeholders as needed. Event-based traceability is built on a foundation of Critical Tracking Events (CTEs) and Key Data Elements (KDEs).

Critical Tracking Events

Critical tracking events are significant events recorded throughout the supply chain that are essential for achieving traceability. They are usually ciritical points of transfer or transformation.

A core set of standardized event types common across supply chains is used to track and trace poroducts. These foundational events are typically sufficient to establish traceability for most commodities.

Events	Description
Commission	An event in which a new product instance is created/documented for the first time. These events typically occur in the far upstream steps of a supply chain.
Decommission	An event in which a product instance is removed from a supply chain. These events typically occur when a product is consumed or must be removed from the supply chain due to damage or defects.
Shipping	An event in which product is shipped from one physical location to another. Shipping events can occur internally (between facilities of a single organization) or externally (from one organization to another)
Receiving	An event in which shipped product is received by the ship-to facility. Receiving events can occur internally (between facilities of a single organization) or externally (from one organization to another).
Aggregation	An event in which one or more distinct products are physically grouped together. Aggregation is always reversible and usually performed for shipping/storage purposes (e.g., combining several distinct cases on to one pallet).
Disaggregation	An event in which previously aggregated items are separated (e.g., breaking down a pallet into distinct cases).
Transformation	An event that involves irreversible changes to a products physical form (e.g., manufacturing, processing) or packaging (e.g., commingling, repacking, relabeling).

Event-Based Traceability