Note: SQF has since backtracked on this requirement. Live traceability tests are no longer a requirement during the audit.
Version 7.2 of the SQF code brings some big changes, not the least of which is a change to the traceability requirements. Live traceability exercises are now a requirement during the audit.
So how will this work? The auditor will choose a raw material from the supplier's warehouse. The supplier will then have to trace this lot of raw material one up and one back. Starting from receipt of raw material, the supplier will need to trace it through production to the finished products in which it were used, and then trace those finished product to the customer. The amount of raw material or finished product that is still on hand must also be taken into account.
To exhibit full traceability of the chosen material the amount received must match the amount used plus the amount on hand. Supplier's are typically given until the end of the audit to present these results, but this may vary based on the Certification Body.
This requirement will put a greater emphasis on the need to have an airtight traceability program. This traceability challenge must be done on the spot using whatever product was chosen by the auditor. This means that any ingredient or packaging material the supplier brings in is subject to be traced.