Track and Trace
Monitoring the movement and status of shipments throughout the supply chain.
Definition
Track and trace systems provide visibility of goods in transit, enabling accurate delivery updates and proactive issue resolution.
Overview of Track and Trace
Track and trace is a supply chain management capability that enables real-time monitoring and historical recording of the movement, location, and status of shipments, inventory, and individual product units throughout the logistics network — from origin through all intermediate handling points to final destination. Tracking refers to the forward-looking, real-time visibility of where a shipment currently is and when it will arrive. Tracing refers to the backward-looking reconstruction of a shipment or product unit journey through historical records. Together, track and trace provides both operational monitoring for proactive exception management and a complete audit trail for dispute resolution, recall management, and regulatory compliance. In warehouse and 3PL operations, track and trace capability is implemented through a combination of barcode scanning, RFID readers, carrier API integrations, and IoT telematics. Every scan event — inbound receipt, putaway confirmation, pick scan, pack scan, carrier manifest scan, and delivery confirmation — creates a timestamped record that builds the complete visibility chain. For parcel shipments, carriers publish tracking APIs that update status every time a package passes through a hub scan point. For truckload and LTL shipments, track and trace relies on carrier electronic logging device (ELD) data, mobile app check-ins, and driver location pings integrated through TMS platforms or visibility providers such as project44 or FourKites. WareMatch connects brands with 3PL providers and warehouse operators who offer robust track and trace capabilities through WMS client portals, carrier API integrations, and proactive exception alerting systems. Through the WareMatch marketplace, businesses can identify operators who provide the shipment visibility their customers expect, from inbound receipt confirmation to delivery notification, without requiring expensive standalone visibility platform subscriptions.
Role
Monitoring the movement and status of shipments throughout the supply chain.
Focus
Track and trace is a supply chain management capability that enables real-time monitoring and historical recording of the movement, location, and status of shipments, inventory, and individual product units throughout the logistics network — from origin through all intermediate handling points to final destination. Tracking refers to the forward-looking, real-time visibility of where a shipment currently is and when it will arrive. Tracing refers to the backward-looking reconstruction of a shipment or product unit journey through historical records. Together, track and trace provides both operational monitoring for proactive exception management and a complete audit trail for dispute resolution, recall management, and regulatory compliance. In warehouse and 3PL operations, track and trace capability is implemented through a combination of barcode scanning, RFID readers, carrier API integrations, and IoT telematics. Every scan event — inbound receipt, putaway confirmation, pick scan, pack scan, carrier manifest scan, and delivery confirmation — creates a timestamped record that builds the complete visibility chain. For parcel shipments, carriers publish tracking APIs that update status every time a package passes through a hub scan point. For truckload and LTL shipments, track and trace relies on carrier electronic logging device (ELD) data, mobile app check-ins, and driver location pings integrated through TMS platforms or visibility providers such as project44 or FourKites. WareMatch connects brands with 3PL providers and warehouse operators who offer robust track and trace capabilities through WMS client portals, carrier API integrations, and proactive exception alerting systems. Through the WareMatch marketplace, businesses can identify operators who provide the shipment visibility their customers expect, from inbound receipt confirmation to delivery notification, without requiring expensive standalone visibility platform subscriptions.
Example
See the definition above for context.
Benefits
- Provides real-time shipment status to customer service teams, reducing inbound inquiries about order whereabouts.
- Enables proactive exception management by surfacing delayed or at-risk shipments before customers escalate.
- Supports product recall execution by providing historical records of where specific lot or serial numbers were shipped.
- Enables carrier performance measurement through objective, data-driven on-time delivery tracking.
- Provides the audit trail required for freight claim resolution by documenting custody transfer at each hand-off.
- Improves customer satisfaction and trust by enabling self-service shipment tracking through branded tracking portals.
FAQs
Q: What is the difference between tracking and tracing in supply chain terms?
A: Tracking is the forward-facing, real-time capability — monitoring a shipment as it moves from origin toward destination, updating its current location and estimated arrival. Tracing is backward-looking — reconstructing the historical path a shipment or product unit followed, including every scan event and custody transfer, to determine where it was at any specific point in time. Both are needed: tracking for proactive exception management and customer communication, tracing for investigations, recalls, and dispute resolution.
Q: How do 3PLs provide track and trace to their clients?
A: 3PLs typically provide track and trace through a combination of WMS client portals that show real-time inventory and outbound order status, carrier tracking integrations that pull delivery scan data automatically, and automated email or SMS notifications triggered by key shipment events such as carrier pickup, hub arrival, out for delivery, and delivery confirmation. Some 3PLs provide a white-labeled tracking page clients can embed in their customer-facing communications for a branded tracking experience.
Q: What is the role of RFID in track and trace?
A: RFID (Radio Frequency Identification) enables automated, non-contact tracking of tagged items as they pass through reader-equipped gates and portals without requiring manual scanning. In warehouse environments, RFID dock portals can log the contents of an entire pallet as it passes through a receiving door, dramatically accelerating inbound receiving and creating a precise timestamp record. For high-value goods, retail compliance programs from Walmart and Target increasingly require RFID tagging, which enables item-level track and trace throughout the store supply chain.
Q: Can track and trace help reduce freight claims?
A: Yes, significantly. When a track and trace system records each custody transfer with a timestamp and scan event, it creates an objective record of when freight was delivered to the carrier, the condition at tender, and the carrier's subsequent handling. If a shortage or damage claim arises, this audit trail is the primary evidence for determining whether the loss or damage occurred at the warehouse, in transit, or at the destination. Strong track and trace documentation typically resolves freight claims faster and with less dispute.