Demystifying EUDR with GS1 technology standards

EUDR – what is it and why should you care?

The EU Deforestation Regulation (EUDR) is a policy aimed at combating global deforestation by regulating the trade of certain high-risk commodities. It directly affects companies that produce, trade, or sell goods such as palm oil, soy, coffee, cocoa, rubber, wood, and related products, as well as cattle and their derivatives. The regulation requires these businesses to conduct stringent due diligence and traceability processes to ensure their supply chains are free from links to deforestation or forest degradation.

Preparing for the EUDR traceability requirements is not just a cost but an opportunity to achieve significant business benefits

Many companies see the EU regulations (e.g. EUDR, DPP) only as a “necessary evil” – something that must be done, but doesn’t yield anything in return. However, setting up solutions for handling these traceability requirements is also a great opportunity to utilize the same tools for developing the business and achieving numerous tangible benefits which will ultimately boost margins through increased efficiency, customer stickiness, and data-driven decision-making. In fact, with the right tools, the initiatives can be completely business-lead, while tackling the mandatory compliance needs is just a “byproduct” – two birds with one stone!

Complying with EUDR might not be as hard as you think

Understanding and complying with EUDR is not something you can get done in a day, but it isn’t quantum physics either. In the end, the related traceability processes are quite simple – collecting, managing, and sharing data. Large portion of this data is already being collected by many affected businesses, even though this is not always clear to them. In many occasions, the data is highly scattered in different IT systems along the value chain and its various operators.

The complexity element derives mostly from wrong type of tools – many companies are trying to handle the EUDR requirements entirely on their ERP system. These systems are simply not built for this type of end-to-end process that stretches over company boundaries on both ends and involves sharing data with numerous external stakeholders.

Some of the big ERP players have started to offer their own built-in EUDR solutions (e.g. the SAP Green Token), but for most companies these are way too slow and expensive options to consider. A more plausible approach is to utilize modern tools like Bluugo’s Tracking Cloud® platform that is specifically designed for modern use cases involving lots of different stakeholders and data sharing in both directions.

Technology standards make data-sharing easy and provide future-proofness

One crucial ingredient for successful EUDR transition is the use of established technology standards for data capturing and sharing, such as EPCIS and Digital Link by GS1.

For example, in the food industry, EPCIS and Digital Link simplify traceability by enabling consistent data sharing and access across the supply chain. EPCIS captures and tracks events like production, shipping, and recalls, ensuring transparency from farm to fork. Digital Link enhances traceability by using scannable codes (e.g., QR codes) that connect stakeholders and consumers to detailed product information, such as origin, (geolocation, producer, time of birth, etc.), allergens, and sustainability factors. These standards streamline the regulatory compliance processes and data sharing between stakeholders, while also helping to build consumer trust by enabling real-time access to accurate traceability data. Utilizing widely established standards also provides robust future-proofness for the implemented solutions – if and when new requirements arise, it is fast and easy to adjust accordingly and add new stakeholders and IT systems to the process.

Tracking Cloud® Showcase at GS1 Finland – Traceability from Farm to Fork

Bluugo is an official GS1 partner company – our Tracking Cloud® platform fully supports GS1 traceability standards such as EPCIS and Digital Link. We were recently invited to the Headquarters of GS1 Finland to showcase our platform and demonstrate how the EUDR traceability requirements can be easily tackled as a single end-to-end process on our platform.

In this example, we are tracking beef from “farm to fork”, but the same platform can easily be used for other products as well, e.g. wood, coffee, rubber, etc.

1. Producer Creates a Sales Batch

• Livestock producers form a sales batch, and the system sends the necessary notifications to the EU's Traces system.

2. Transport and Collection

• A transportation company collects the animals in the sales batch using the Tracking Cloud® PWA mobile application. Simultaneously, the system generates EPCIS events to ensure transport traceability. The geolocation accuracy complies with regulatory requirements, and GPS data enables route visualization on a map.

3. Reception at the Production Facility

• Upon receiving the animals at the production facility, a notification for each animal is sent to the EU Traces system, enhancing traceability data. The production facility sends EPCIS events from ERP and MES system entries to maintain traceability at the batch level.

4. Product Processing and Packaging

• Finished products are packaged and labeled with a GS1 SSCC identifier. A QR code compliant with the GS1 Digital Link standard is also added to the package. Data from temperature sensors during transport can be linked to product batches, ensuring an unbroken cold chain.

5. Retail Reception

• Upon arrival to the location, the retailer scans the SSCC code on the products, creating another traceability event. Quality control, such as checking the condition of the products, can also be conducted during reception.

6. Product Sale

• The retailer's point-of-sale system creates a traceability event when the product is sold to the customer.

7. Consumer Experience

• The consumer can scan the digital link on the packaging with their smart phone to access detailed traceability information, generating the final traceability event.

The process above has been technically possible for a long time already, but thanks to our platform, it can now be executed faster and much more efficiently than ever before. When every action along the value chain leaves a trace in the form of an EPCIS event, it is easy to spot and deal with possible anomalies or other issues as well.

Thanks to Tracking Cloud’s hyperadaptability, the solution can be effortlessly adjusted to match the different practices, systems, and digital maturity levels of various players throughout the value chain. It is also worth noting that the systems do not need to be continuously connected to each other either – data can also be transferred in batches afterwards, making the system even more flexible and secure.

Ready to tackle EUDR in 8 weeks?

With Tracking Cloud®, tackling the requirements of EUDR doesn’t require massive investments or year-long IT projects – our platform can be implemented to production use in just 8 weeks from signing he contract. If your company will be affected by the EUDR and your are looking for tools to make it happen, give us a call! We will gladly showcase our solution and answer any questions you have about the EUDR and its effects on your company.

Useful Links

Tracking Cloud® for EUDR – more information about our EUDR solutions

Practical Guide to EUDR – How to Prepare for the upcoming EU Deforestation Regulation? – a free whitepaper about EUDR and its requirements