Certified Supply Chain Professional (CSCP) Practice Exam

What is product traceability?

1. A method to ensure product quality

2. A means to provide chain of custody for goods and components

3. A regulation for importing goods

4. A strategy for reducing lead times

The correct answer is: A means to provide chain of custody for goods and components

Product traceability refers to the ability to track the history, application, or location of an item within the supply chain. It is fundamentally about maintaining a documented chain of custody for goods and components, allowing businesses to follow the journey of a product from its origin to the end consumer. This is particularly important in industries such as food, pharmaceuticals, and electronics, where knowing the source and handling of a product can directly impact safety and quality. When traceability is properly implemented, it facilitates effective recall processes in case of defects or safety issues, helps to verify compliance with regulatory requirements, and enables companies to address consumer concerns more efficiently. In essence, it serves to uphold accountability and transparency throughout the supply chain. Though ensuring product quality, adhering to regulations for importing, and reducing lead times are important aspects of supply chain management, they do not capture the essence of product traceability, which is primarily concerned with tracking and documenting the movement and custody of products and their components.