Baking transparency in: How SMEs can embrace traceability

Ruairidh Chisholm, international business undergraduate student, wrote his dissertation centred on traceability with the help of a small Glasgow bakery, arguing it’s not a luxury but a necessity in a consumer-conscious food industry. 

In today’s increasingly regulated and consumer-conscious food industry, traceability is no longer a luxury - it’s a necessity. While large corporations have the resources to implement advanced technologies like blockchain and RFID to track products across global supply chains, small and medium enterprises (SMEs) often find themselves struggling to keep up. My research, centred on the Scottish SME Christie The Baker, sheds light on the challenges and opportunities facing small food businesses in adopting traceability systems. 

The Importance of Traceability in Food Supply Chains 

Traceability systems allow businesses to track ingredients and products throughout the supply chain, ensuring food safety, regulatory compliance, and consumer trust. For SMEs like Christie The Baker, this means being able to trace a batch of flour or nuts back to its source, identify any faults, and respond quickly to issues. In an era where consumers demand transparency and regulators tighten standards, traceability is key to staying competitive. 

Christie The Baker has already taken steps in this direction, using electronic point-of-sale (EPOS) systems and assigning tracking numbers to batches of raw materials. These systems help manage inventory and sales efficiently, but the bakery still relies heavily on external suppliers for supply chain tracking—highlighting a common challenge among SMEs. 

Barriers to Adoption: Cost, Complexity, and Capacity 

One of the most significant barriers to adopting advanced traceability systems is cost. Technologies like RFID and blockchain require substantial upfront investment, ongoing maintenance, and technical expertise—resources that many SMEs simply don’t have. Christie The Baker’s owner noted that without a government grant, they wouldn’t have been able to invest in an automated bread-making machine, illustrating how financial constraints can stifle innovation. 

Beyond cost, SMEs face operational and technical hurdles. Implementing new systems often means disrupting existing workflows, retraining staff, and navigating complex compliance requirements. For Christie The Baker, introducing new procedures would “add more depth to the business,” making adoption a daunting prospect. 

The Role of Training and Organisational Structure 

Training is another critical factor in successful technology adoption. Christie The Baker conducts all job training in-house and uses external platforms for mandatory compliance courses. However, the lack of a dedicated HR department limits the scope of formal training programmes. The owner recognises that enhanced training and HR systems could help the business stay ahead of regulatory changes and support long-term growth. 

Interestingly, the bakery’s management structure - based on individual expertise - supports innovation. Yet, the absence of technology-specific roles means there’s no one solely focused on driving digital transformation. Hiring someone with a tech background could significantly improve the company’s ability to evaluate and implement new systems. 

Pathways Forward: Modular Systems and Government Support 

Despite the challenges, my research has identified several practical solutions for SMEs. Modular traceability systems, which allow incremental adoption, can help businesses implement digital tracking without overwhelming their operations. These systems can be tailored to the scale and needs of SMEs, making them more accessible and cost-effective. 

Government incentives, such as grants and tax relief, play a crucial role in enabling SMEs to invest in technology. Christie The Baker’s experience with grant funding demonstrates how external support can unlock opportunities for innovation. Additionally, tailored training programmes - supported by industry associations or consultants - can equip staff with the skills needed to manage new systems effectively. 

Why It Matters 

For SMEs in the food industry, traceability isn’t just about compliance - it’s about building trust, improving efficiency, and staying competitive. Christie The Baker’s journey reflects the broader challenges faced by small businesses but also highlights the potential for growth through strategic investment and support. 

As consumers continue to demand transparency and regulators raise the bar, SMEs must find ways to adapt. With the right tools, training, and support, even the smallest bakery can bake in traceability and rise to meet the future of food safety.