Explanation
In the food chain the principle of one step back and one step forward applies: you know who you received a product from and to whom you delivered it. You also have internal insight: which raw material batches ended up in which production batch. That creates a chain of batch numbers.
In practice you record batch numbers, shelf-life dates and suppliers on receipt, assign production batches and register what goes to which customer. The more precise that is, the smaller the quantity involved in a problem. You test the system by practising, for example by reconstructing the whole path starting from one batch.
Traceability is not only for food. In construction, chemicals and engineering you also want to know which materials and components were used where. It differs from a recall: traceability is the precondition, the recall is what you do with it when there is a problem.
Example from practice
A company that makes salads receives a batch of lettuce with a batch number. That number is linked to the production batch and to the customers who received the product, so that in case of a problem it is quickly clear which deliveries are involved.
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