Internal Traceability: Imagine you have a specific area, like a single company or a factory. Inside that area, you want to keep track of how parts or products move around. For instance, if a car engine assembly plant buys parts like camshafts and pistons from suppliers and puts them together, they use internal traceability to keep a record of these parts' history and quality checks.

Chain Traceability: Now, think bigger. Chain traceability covers the entire journey of a product, from getting the raw materials and parts to making, distributing, and selling it. Manufacturers can track where their products have gone ("trace forward"), and customers can find out where the products they have come from ("trace back"). This helps manufacturers investigate issues and recall products if needed. It also gives consumers confidence in the products they choose, knowing they can trust their origin.