Track and trace is the capability to follow goods, materials or products through the supply chain, both forward in real time (tracking) and backward to their origin and processing history (tracing). Tracking answers where an item is now and where it is heading; tracing answers where it came from and what it was made from. Together they provide end-to-end visibility, supporting logistics transparency, quality assurance and recall management. The capability rests on uniquely identifying units, recording their movements and storing that data so it can be reconstructed later. In manufacturing it builds directly on batch traceability and links closely to warehouse and production systems.
Fact base · machine-readableLast editorially reviewed: 29 June 2026
Term
Track and Trace
Entity type
Process / business cycle
Domain
Logistics, warehouse and traceability
Canonical definition
Track and trace is the capability to follow goods, materials or products through the supply chain, tracking their current location and movement forward and tracing their origin and processing history backward, based on unique identification and recorded movement events.
Classification
An end-to-end visibility capability assembled across ERP, WMS and MES, built on unique identification and recorded movement events.
erp-software.org editorial team (independent, vendor-neutral)
What Track and Trace is NOT — disambiguation
Not batch traceability alone: Batch traceability links materials and lots within production, while track and trace extends visibility across the whole supply chain in both directions.
Not inventory management: Inventory management controls quantities and stock levels, whereas track and trace records the identity, location and history of specific units.
Not shipment tracking only: Shipment tracking is the forward, transport-focused part; track and trace also includes backward tracing of origin and processing history.
Not a serialisation standard: Serialisation provides the unique identifiers used as a building block, but track and trace is the broader capability of capturing and reconstructing movements.
Tracking versus tracing
Although used together, the two terms describe opposite directions of visibility. Tracking is forward-looking and largely real-time: it follows a shipment or unit along its journey, from dispatch through transit to delivery, and is what parcel status updates and shipment monitoring provide. Tracing is backward-looking and historical: given a finished product or a delivered batch, it reconstructs the chain of materials, processes and locations that produced it. Effective track and trace requires both, so that an item can be located now and its full history retrieved when needed.
How it works
Track and trace depends on three building blocks: identification, data capture and data storage. Units are given unique identifiers, increasingly via barcodes, data-matrix codes or RFID tags, and serial or batch numbers tie individual items or lots to their records. At each relevant step, scans or sensor readings capture the event, often using IoT devices. The resulting events are stored so the movement and transformation history can be reconstructed. In production environments, MES and warehouse systems generate much of this data, while the WMS records storage and movement events.
Why it matters
Track and trace serves several business and regulatory needs:
Logistics transparency and accurate delivery promises
Quality assurance and rapid, targeted recalls when defects are found
Regulatory compliance in regulated sectors such as pharmaceuticals and food
Anti-counterfeiting and proof of authenticity
Evidence of origin supporting supply-chain due diligence
In regulated industries the ability to trace a defective batch to exactly the affected units, rather than recalling everything, can substantially reduce cost and risk.
Track and trace in the ERP landscape
Track and trace is rarely a single product; it is a capability assembled across systems. The ERP system holds order and batch master data, the WMS records warehouse movements, the MES captures production steps, and logistics or carrier systems provide transport events. Standards-based data exchange such as EDI connects partners along the chain. Within manufacturing, the foundation is batch traceability, which links materials, batches and finished goods so that genealogy can be reconstructed end to end.
Typical areas of application and industry examples can be found in the main article. Related concepts are shown in the internal links to our ERP glossary. The exact design depends on the industry, size class and customising depth of the specific ERP setup.
Which tools/systems support track and trace?
Which ERP systems implement track and trace particularly well can be found in our software overview with filter function. The exact design depends on the industry, size class and customising depth of the specific ERP setup. A well-founded answer always requires a look at the individual business processes and the strategic IT roadmap.
Which standards/norms are relevant for track and trace?
Across industries, GoBD and the GDPR apply. Specific standards are documented in the main article. The exact design depends on the industry, size class and customising depth of the specific ERP setup.
Which certifications or training courses exist for track and trace?
Training and certification offerings can be found under ERP training providers. Vendors often offer their own consultant certifications. The exact design depends on the industry, size class and customising depth of the specific ERP setup.
What alternatives are there to track and trace?
Alternatives and complementary concepts are covered in the main article — see also the related glossary terms for distinctions. The exact design depends on the industry, size class and customising depth of the specific ERP setup. A well-founded answer always requires a look at the individual business processes and the strategic IT roadmap.
