<p>Traceability is often implemented as a regulatory requirement in supply chains. Organizations have started to recognize its potential to improve supply chain resilience, transparency, and operational performance. Despite this growing importance, many firms struggle to move beyond fragmented, compliance-driven approaches to traceability. This study examines how organizations operationalize traceability as a strategic capability within complex supply chains. Using a multiple case study design, the research analyzes traceability initiatives across three sectors: food production, healthcare manufacturing, and industrial construction based on semi-structured interviews with practitioners and documentation from case companies. Cross-case analysis reveals three foundational pillars that enable effective traceability: technology integration, supplier engagement, and process redesign. The findings further show that the strategic impact of traceability depends on complementary enabling mechanisms, including governance structures, performance measurement, and change management practices. Together, these six dimensions form an integrated capability framework that explains how traceability initiatives evolve from compliance tools into drivers of operational visibility and responsiveness. The study contributes to operations and supply chain research by bridging practitioner experience with theory and offers actionable guidance for organizations seeking to embed traceability into their operating models rather than treating it as an isolated compliance activity. By positioning traceability as a strategic capability, the study offers managerial implications for building adaptive, efficient, and resilient supply chains in a dynamic global environment.</p>