Navigating the EUDR: Building toward full traceability
New EU rules demand full traceability. Discover how to stay compliant, cut risk and build a future-ready supply chain with confidence.
Written by
Xandra
The European Union’s Deforestation Regulation (EUDR) has introduced new compliance challenges for businesses handling raw materials linked to deforestation, such as soy, palm oil, beef, cocoa, and rubber. The regulation prohibits companies from selling or exporting these products within the EU unless they can prove they are deforestation-free and produced in compliance with relevant laws. Additionally, companies must meet strict traceability requirements to ensure transparency throughout the supply chain.
However, meeting these requirements is not easy. Experience has shown that achieving full traceability across supply chains requires considerable lead time, as businesses must establish powerful data collection and tracking systems. As companies work toward compliance, they must consider scalable traceability tools and data management solutions to ensure smooth operations.
In this article, we’ll explore the impact of the EU Deforestation Regulation (EUDR) on supply chain management, the key compliance challenges businesses face, and how we manage to provide a scalable solution to ensure full traceability and transparency.
The impact of the EUDR on supply chain management
The EU Deforestation Regulation aims to combat illegal deforestation linked to certain commodities by requiring proof of the origins of their raw materials. The regulation focuses on due diligence, enhanced transparency, and accurate traceability of assets. To stay compliant, companies must adopt scalable and reliable solutions that ensure visibility throughout the entire supply chain. The EUDR has significant consequences for businesses in industries where products are sourced from high-risk deforestation areas. The regulation requires:
Stricter due diligence
Companies must prove that their assets are not linked to deforestation, demanding accurate traceability.Enhanced transparency
Businesses are required to trace the origin of raw materials with high accuracy, sometimes down to the very plot of land.Supply chain disruptions
Non-compliant suppliers risk exclusion from the EU market, negatively impacting sourcing and product availability. This could lead to significant financial penalties and legal consequences.Increased costs
Implementing and maintaining compliance adds costs for data tracking, audits, and reporting systems for all assets.Competitive advantage
Early compliance fosters trust, helping businesses gain market share and strengthen sustainability credentials.
5 ways our solution solves these EUDR challenges
1. Enhanced traceability and transparency
The EUDR requires businesses to demonstrate that their raw materials are deforestation-free, often requiring traceability down to the exact source. With our IoT-as-a-Service solution we ensure full visibility and a reliable record of asset movements. By offering this, you not only meet the transparency requirements of the EUDR but also reduce the risk of compliance issues by providing an auditable trail that can be easily referenced.
2. Supply chain disruptions and risk mitigation
Non-compliance with EUDR can lead to serious consequences, including exclusion from the EU market. With our solution helps businesses stay ahead by providing continuous asset monitoring, ensuring full visibility across the supply chain. Potential compliance issues are detected early, allowing businesses to address them before they escalate. Additionally, every asset movement is securely logged, creating a transparent and verifiable audit trail that simplifies compliance and minimizes risk.
3. Managing increased costs for compliance
Complying with the EUDR involves implementing data tracking, auditing and reporting systems, which can be expensive and resource-intensive. We help minimize these costs by offering a single, scalable solution that streamlines the compliance process. By eliminating the need for multiple separate systems and minimizing manual oversight, our solution not only enhances operational efficiency but also reduces the overall cost of compliance.
4. Scalability for growing compliance needs
As your business expands, so do the challenges of maintaining compliance with the EUDR. Our solution is built to grow with you. It easily scales to handle an increasing volume of tracked assets, ensuring your compliance efforts remain uninterrupted as your operations evolve. Additionally, the seamless integration of new tracking capabilities and compatibility with your existing systems ensures a smooth deployment, without disrupting your current operations.
5. Competitive advantage through early compliance
Early adoption of the EUDR and compliance with its requirements can give companies a significant competitive advantage. By adopting our solution, businesses position themselves as leaders in sustainability, demonstrating a commitment to responsible sourcing and environmental responsibility. This proactive approach not only supports trust with stakeholders but also strengthens a company’s position in the market, helping it gain competitive edge and loyalty.
