Navigating the New Food Traceability Requirements: Key Steps for Compliance

The latest developments in food traceability regulations, particularly under the FDA’s Food Safety Modernization Act (FSMA) and the new Food Traceability Final Rule, are reshaping how the food and beverage industry manages its supply chains. This rule requires companies to trace their supply chain from "origin to destination," tracking ingredients from their source to their final distribution. This essential step is designed to enhance safety and transparency, focusing on high-risk foods like fresh fruits, seafood, and cheeses.

To comply effectively, organizations must capture and maintain critical data points at every stage of the product’s journey. This includes shipment dates, quantities, batch numbers, and a traceability lot code (TLC) that must follow the product through its transformation and distribution phases. The FDA further mandates that companies provide this traceability information within 24 hours of request in an electronic format to enable rapid identification and removal of potentially harmful products from the market.

Challenges Across the Supply Chain

Adapting to these requirements presents unique challenges across different sectors of the supply chain:

• Manufacturers: Manufacturing involves complex processes, including product transformation and commingling, which can make it difficult to track batches accurately. Ensuring that all steps, from mixing ingredients to finished products, are traceable is critical. Automation and technology-enabled solutions can simplify data capture and reduce the risks associated with manual data entry.

• Transportation and Logistics Providers: Effective traceability hinges on accurate, real-time data exchange throughout transit. Transportation companies play a pivotal role in capturing and maintaining critical tracking events (CTEs), such as shipment details, storage conditions, and transfer records. By adopting GPS-enabled solutions, RFID, and integrated data systems, transportation providers can contribute to a compliant and connected supply chain.

• Restaurants and Food Service Operations: For restaurants, traceability is not just about compliance but also about food safety, quality, and reputation. As these businesses often deal with ready-to-eat items and perishables, any gaps in traceability could lead to rapid and severe consequences during recalls. By working with reliable technology partners, restaurants can ensure accurate tracking of received goods and support swift responses to any food safety issues.

• Retailers: Retailers must develop robust systems to manage data from a wide variety of suppliers, each of whom may provide different formats and levels of information. This variability makes it challenging to integrate data and maintain consistent records. Investing in advanced data management tools and partnering with technology providers can significantly improve accuracy and traceability compliance.

Compliance Timeline and Actions for Companies

With the compliance deadline of January 20, 2026, fast approaching, companies need to act swiftly. The FDA’s regulations focus on high-risk foods, but organizations across the entire supply chain must be prepared for potential expansions to the list of regulated products. Compliance hinges on capturing key data elements (KDEs) at every critical tracking event, using tech-enabled systems to replace outdated manual processes.

Why Compliance Matters

Compliance with these traceability requirements extends beyond regulatory adherence—it’s a strategic business imperative. Tracing products from origin to destination aligns with the FDA’s Smarter Era of Food Safety initiative, which leverages technology to modernize food safety practices. Organizations that comply with these regulations will not only reduce risks and protect consumer health but will also enhance operational efficiency, improve inventory management, and boost reporting capabilities. Investing in these processes now will position companies for future success, especially if the FDA broadens its scope of high-risk foods.

Risks of Non-Compliance

Failure to meet these new standards presents several risks, including:

• Operational shutdowns and disruptions

• Financial penalties

• Reputational damage

• Extended delays during recalls

Moving Forward: Essential Actions for Compliance

To move forward, companies must implement robust, technology-driven traceability solutions across the entire supply chain. Collaboration with trusted technology partners, such as Velociti, can ensure that all data capture and tracking needs are met. By establishing accurate processes from the point of origin to the end destination, organizations can meet regulatory requirements, minimize risks, and build safer, more transparent supply chains.

The FDA’s new traceability rule represents the future of food safety and supply chain transparency. Compliance is not merely an obligation—it is an opportunity to transform operations and strengthen connections across the industry.