EUDR-Compliant? The Right Software Makes All the Difference.

For commodities particularly affected by deforestation, such as palm oil, soy, cocoa, coffee, wood, rubber, and cattle products – as well as their derivatives like chocolate, leather goods, paper, tires, or furniture – mandatory proof of deforestation-free origin will apply from December 30, 2025. There is no minimum quantity limit; every single transaction is relevant. here is an urgent need for action.

Compliance Is No Accident: The Path to EUDR Compliance

But how does one become compliant? The obligations of the EUDR are far-reaching and require a systematic approach.

Compliance in Theory:

Articles 9 to 11 of the EUDR clearly define the obligations that a company trading in the aforementioned commodities must fulfill. While there are differences between small and medium-sized enterprises (SMEs) and larger players, no one can avoid ensuring a deforestation-free supply chain.

Non-SMEs fall under the full EUDR framework and must meet the following core requirements:

• Implementation of a Due Diligence System: Companies must conduct due diligence to prove deforestation-free origin.
• Collection and Verification of Geo-Data: This involves precise geographical coordinates of cultivation or harvesting areas – for example, the field where the coffee bean was harvested, or the birth and rearing place of the cattle.
• Risk Assessment and Risk Mitigation: Companies must evaluate and analyze potential risks of deforestation or illegal origin of raw materials. If risks are identified, appropriate measures to mitigate them must be taken. This analysis and assessment must be documented in writing. The EU offers a risk assessment of the countries of origin of raw materials (low, normal, high risk). The lower the risk category, the less likely detailed checks by authorities are.
• Creation of a Due Diligence Statement (DDS) before placing on the market: To ensure EUDR compliance, a Due Diligence Statement must be created on the TRACES platform provided by the EU. This includes, among other things, the origin, material, and weight.

Important Points and Misunderstandings:

• Certificates like FSC are not sufficient to be EUDR-compliant. While they can be part of the risk assessment, they do not replace comprehensive due diligence.
• Written assurances from suppliers about deforestation-free origin are not enough. Verifiable and auditable documents and data must be submitted.
• Suppliers from "Low-Risk Countries" do not exempt from all obligations; origin data and legality requirements must also be checked here.

Non-compliance is subject to severe penalties, including exclusion from trade in the EU.

The Right Software Makes the Difference: What to Look For

The requirements of the EUDR can hardly be met without the right technological support. A powerful software solution is essential to manage complex data sets, automate processes, and create the necessary transparency.

A: Identify Your Status Quo:

Before choosing software, it is crucial to analyze your company's current situation precisely:

• Clarify your corporate obligations:
• Are you an "Operator" (first placing on the market/export) or a "Trader" (trading within the EU)?
• Do you fall under the SME category or are you a larger company?
• Which of your products and processes are EUDR-relevant?
• Conduct a Maturity Assessment:
• How transparent is your supply chain already today?
• How much do you know about your suppliers – not just Tier 1, but up to Tier N?
• How well do you maintain and collect your data? Which data is already available?
• Which systems do you use (ERP, WMS, TMS, PLM, SRM, etc.)? Are these integrated or rather isolated solutions?
• How does communication between departments work? Are processes already standardized?

These questions create a solid basis for software selection and identify your specific requirements.

B: Identify Gaps and Challenges:

Based on your status quo and the EUDR requirements, you can now specifically identify gaps and potential difficulties:

• Is all necessary information from your suppliers available and verifiable?
• Can you ensure complete traceability of your products from goods receipt to production to goods issue?
• Can you ensure digital, auditable tracking and corresponding documentation?
• Are your internal processes designed to meet due diligence requirements?

C: What to Look for When Choosing the Right EUDR Software

Once you know the EUDR requirements, can assess your company's status quo, and have discovered potential gaps, you are ready for a "deep dive" into the landscape of software providers.

In addition to industry knowledge, the following are important:

• Automated DDS Creation and Submission: The software must be able to automatically generate Due Diligence Statements (DDS) via the TRACES platform (Articles 3, 13).
• Supplier Data Management & Risk Assessment: A robust solution ensures the collection, management, and analysis of supplier data to conduct a comprehensive risk assessment, considering country benchmarks according to EUDR requirements (Articles 10, 11).
• High-Precision Geodata Analysis: The software can manage and visualize precise geolocation data of cultivation or harvesting areas to verify deforestation-free origin (Article 9).
• Multi-Tier Traceability: There must be the ability to map the entire supply chain from source to placing on the market, and no mixing with non-compliant raw materials.
• Legally Compliant Verification and Documentation: The platform ensures that all collected data and performed analyses are legally sound and auditable.
• Seamless ERP Integration: Bidirectional data synchronization with existing ERP systems is crucial to avoid isolated solutions and ensure data consistency.
• Robust API Frameworks: These are indispensable for flexible connection to other systems (e.g., customs authorities, other IT tools).
• Scalability: Growing requirements (e.g., addition of affected raw materials) and potentially changing regulatory frameworks must be scalable.
• Data Security and GDPR Compliance: The protection of sensitive data and compliance with the General Data Protection Regulation are essential.

Have you clarified whether EUDR compliance is covered by the provider?

Then let's move on to the next steps! 

• Take the analysis of your company from points A & B and identify functionalities that the software must cover! Do you have multiple production sites? Does communication between systems need to take place? Do you need the system in multiple languages? And much more.
• Money Matters. With the defined criteria, ask for a quote. Make sure that the offer truly reflects your actual situation. Approximate number of suppliers, from how many countries, how many production sites, how many products.
• Internally define your priorities and evaluate the software accordingly. Make sure you don't get dazzled by "extras." Software providers want to sell, so read between the lines. No software can do everything – you need to find the best fit for you.

Not sure if you've forgotten something or can meet the requirements? We are happy to help!

Your Partner for EUDR-Compliance: inloop

With our extensive experience, we quickly recognize our clients' needs and understand the differences between tools. We offer you the shortcut!

inloop comprehensively supports you in analyzing, designing processes, and selecting suitable technologies. Our focus is on a pragmatic approach to implementing EUDR requirements into your daily business practices. We help you leverage synergies in your supply chains and fulfill new obligations efficiently and legally compliant.

Especially in larger companies, the complexity of production sites that further process materials, as well as the interplay with subsidiaries, should not be underestimated. We have gained valuable experience here too, which we are happy to share with you!

Prepare for the EUDR now!

Contact Jennifer Brenner for a non-binding initial consultation and make your supply chain ready for the future!

jennifer.brenner@inloop.at