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EUDR: Definition and overview
What is the EUDR in purchasing?
The EU Deforestation Regulation (EUDR) is an EU regulation that will apply from 2024 and prohibits the import of products that contribute to deforestation or forest degradation. It obliges companies to carry out comprehensive due diligence checks on critical raw materials such as palm oil, wood, coffee, cocoa, cattle and soy as well as their downstream products. Importers must prove that their products do not originate from areas that have been deforested since December 31, 2020.
Contents
The most common EUDR problems for purchasing
Transparency and documentation:
- Difficulties in tracing the goods back to their origin (incl. GPS coordinates)
- Complex detection, especially for mixed products
- Inadequate documentation systems and technical infrastructure
Operational implementation:
- High implementation costs for new systems with a short implementation period until 2024
- Integration into existing procurement processes problematic
- Lack of expertise and resources for due diligence audits
Supplier management:
- Resistance or lack of ability of suppliers to provide evidence
- Difficult to control the entire supply chain including sub-suppliers
Costs and legal certainty:
- Significant investments and ongoing costs for systems and monitoring
- Lack of clarity about specific requirements and risk of penalties for violations
These challenges show the complexity of EUDR implementation in purchasing and underline the need for systematic solutions.
Simply become compliant with the EUDR in purchasing through digitalization
1. build digital infrastructure
- Integration of an EUDR-compliant SRM system as a central platform
- Development of a central documentation database
- Linking with existing e-procurement for consistent data flow
2. automated due diligence processes and efficient process design
- Set up digital risk assessment tools
- Workflow automation for standard processes
- Automatic document checking and archiving
- AI-supported analysis of supplier documents
- Automated alerts in the event of compliance violations
- Digital approval processes
3. design supplier integration
- Development of a supplier portal with self-service functions
- Automated data collection by suppliers
4. set up monitoring and reporting
- Implementation of a central EUDR dashboard
- Automatic generation of compliance reports
- Real-time monitoring of critical key figures
- Integration of early warning systems
The key to success lies in the consistent digitalization and automation of all EUDR-relevant processes. Modern SRM and e-procurement systems form the backbone for efficient and legally compliant EUDR compliance. The initial investment in digital solutions pays off several times over thanks to reduced operating costs, minimized compliance risks and improved transparency. The seamless integration of all systems is particularly important in order to ensure a continuous flow of data and automated processes.
EUDR in procurement: from conventional purchasing to sustainable procurement
The European Union Deforestation Regulation (EUDR) presents companies with the challenge of supply chains in terms of sustainability and legality. While in the past the focus in purchasing was primarily on costs and efficiency, the EUDR now requires a comprehensive transformation towards responsible procurement practices. This change is crucial both to comply with regulatory requirements and to contribute to the global fight against deforestation.
Traditional approach: Traditional purchasing process
In the traditional purchasing process, the focus was on price negotiations, delivery dates and quality requirements. Supplier selection were selected mainly on the basis of economic criteria, without in-depth checks on the origin of the raw materials or their impact on the environment. Supply chains were often opaque and there were rarely mechanisms for risk management of products back to origin. This approach led to limited transparency and increased vulnerability to risks such as illegal logging or unethical practices, which can lead to significant compliance issues under the new EUDR requirements.
New: Sustainable Procurement
The modern approach to procurement firmly integrates sustainability and compliance into all procurement processes. Through the use of technologies such as blockchain for traceability and digital platforms for supplier evaluation companies can monitor the entire supply chain. Innovative tools enable the verification of certifications and compliance with environmental standards in real time. This leads to greater transparency and enables companies to respond proactively to risks. Practical benefits include minimizing compliance costs, building long-term partnerships with sustainable suppliers and strengthening brand image through responsible business practices.
Conclusion: EUDR as a strategic success factor for sustainable procurement management
The EU deforestation regulation marks a turning point in global trade and makes the digital transformation of procurement unavoidable. Only by using modern SRM and e-procurement systems can companies efficiently meet the complex traceability and documentation requirements while keeping their operating costs in check. The EUDR therefore not only offers the opportunity to actively contribute to global forest protection, but also to make procurement fit for the future with digital solutions.
