This paper introduces a diagnostic tool that can be used by fish processing companies to evaluate their own traceability systems in a systematic manner. The paper begins with discussions on the rationale of traceability systems in food manufacturing companies, followed by a detailed analysis of the most important indicators in the designing and executing traceability systems. The diagnostic tool is presented in four grids through which fish companies can evaluate their own developed traceability system. The paper argues that if a company operates at a higher level of contextual factors, then design and execution of traceability system needs to be at a higher level as well so as to achieve a higher level of traceability system performance. The paper concludes that companies that are able to systematically assess their own developed traceability systems are able to determine food safety problems well in advance, and thereby take appropriate corrective actions.