There has been considerable research on sustainable forest management due to its importance in ensuring the long-term health of the forests and its industries. Traceability is an important tool to ensure that the wood and wood-based products are produced in a legal, sustainable, and ethical manner. Therefore, various technologies were implemented within the supply chain to monitor and trace the wood with the aim of fulfilling the traceability objectives. Using a systematic literature review, this paper provides a comprehensive state-of-the-art on the technologies and procedures used in timber traceability and transportation management. It debates traceability tradition and advanced methods such as smart marking, QR (Quick Response) codes, DNA fingerprinting, smartphone apps, RFID (Radio Frequency Identification), machine learning, and computer vision since these technologies enable the integrity of the supply chain by documenting the source of wood and following up on the wood in all the stages, beginning from the standing tree until the final customer. The paper also reviews the advancements in wood transportation management systems, including spatial databases, GPS (Global Positioning System), and fleet management systems, which ultimately lead to real-time monitoring and optimisation of transportation routes, leading to improved efficiency and minimal environmental impact. The review results acknowledge that financial constraints, infrastructure limitations, data management uncertainties, acceptance and compliance issues, and stakeholder commitment are still challenges to implementing traceability technology in the forestry sector. Moreover, this review not only highlights how traceability systems promote responsible forestry practices, ensure sustainable timber sourcing, and develop supply chain management, but also the advantages of utilising these technological advances at economic, social, and environmental levels.