EUDR Data Readiness: How Smart Tracking can Help Bridge the Gap
The EU Deforestation Regulation (EUDR) marks a new era of data transparency in global supply chains. Companies within its scope — and their suppliers worldwide — must prove where raw materials come from, often down to plot-level coordinates.
What Is EUDR and Who Does It Affect?
The EU Deforestation Regulation (EUDR) aims to ensure that certain products placed on or exported from the European Union market are deforestation-free and legally produced. It covers both raw materials and derived products from seven key commodities — cattle, cocoa, coffee, oil palm, rubber, soy, and wood. The regulation applies to companies that place these products on the EU market, make them available within the EU, or export them from the EU.
EUDR affects not only EU-based operators and traders but also suppliers outside Europe who contribute to these supply chains. In practice, this means manufacturers, importers, and exporters around the world must be able to trace their materials back to the exact plot of land where they were produced. Each actor has specific obligations depending on their role, but all must demonstrate that their products are deforestation-free and compliant with local laws before they enter or leave the EU market.
For the official definition of the regulation’s scope, commodities, and operator responsibilities, visit: https://environment.ec.europa.eu/topics/forests/deforestation/regulation-deforestation-free-products_en
EUDR Tracking Requirements: What Companies Are Expected to Deliver
The EUDR shifts compliance from paperwork to data traceability. All actors within its scope must be able to show exactly where each raw material originated, often down to precise geolocation coordinates. Tracking no longer stops at the supplier or batch level — it now extends to the plot of land where commodities were produced and the path they followed through the supply chain.
To meet these expectations, companies need reliable systems to collect, store, and link origin data with shipments and supplier information. That means moving beyond static records toward connected tracking data — from the field to processing, and ultimately to the EU market. Each operator must be able to trace materials back to verified, deforestation-free sources before submitting a Due Diligence Statement (DDS) in the EU’s EUDR Information System.
For updates and tips on EUDR implementation across Member States, see the European Commission’s Deforsestation Regulation Implementation hub.
Assessing EUDR Data Readiness
EUDR compliance depends on whether companies can trace material origins across their supply chains.
To determine if collected data are sufficient and detailed enough for EUDR reporting, companies should review the key points in their supply chain where ownership or chain of custody changes and data registration becomes critical.
Typically, these include:
- Origin data registration – capturing the GPS coordinates of plots where raw materials were produced to prove deforestation-free origin.
- Loading and transport – keeping each batch or shipment linked to its source as materials move downstream.
- Warehouse arrival – ensuring that origin and supplier references are retained when materials enter inventory.
- Shipping to factories – maintaining the data link through internal transfers and logistics.
- Consumption tracking – connecting each raw material batch to the finished goods it produces.
- Finished product verification – preparing proof of origin, legality, and deforestation-free status for inclusion in the Due Diligence Statement (DDS).
Evaluating the material journey from forest to manufacturing helps organizations identify where data capture, linkage, or verification gaps may exist. If information at any stage remains manual, incomplete, or isolated, the resulting data trail may not meet the traceability expectations of the EUDR.
For reference, and further assessment, Article 9 of Regulation (EU) 2023/1115 defines the traceability and geolocation data required for due diligence declarations.
Bridging the Gap Between ERP Data and EUDR Reporting Needs
ERP systems are central to supply chain management, but they rarely hold the depth of origin data required for EUDR due diligence.
They capture transactions, suppliers, and inventory, but not the plot-level geolocation, chain-of-custody links, or deforestation-free verification details that the regulation demands. As a result, the necessary information often exists in separate systems, files, or spreadsheets — but not as a unified dataset ready for EUDR reporting.
Closing this gap requires linking enterprise data with real-world tracking inputs such as GPS coordinates, manual scans and inputs, or barcode, RFID and RTLS based-data.
When these sources connect, the organization gains a continuous digital thread from origin to shipment — creating the verified data chain needed to prepare the Due Diligence Statement (DDS) in the EU’s TRACES EUDR Information System. For more information, visit the EU TRACES portal.
See how Smart Tracking Solutions can connect origin data with ERP Systems.
What Are Due Diligence Statements and TRACES
Under the EUDR, companies must submit a Due Diligence Statement (DDS) confirming that their products are legally produced and deforestation-free. These statements are recorded in the EUDR Information System, which operates within the EU’s TRACES portal — the same platform used for other official trade and traceability procedures.
To complete the submission, the data entered in TRACES must match the company’s internal traceability records — linking origin, supplier, and product information.
Accurate, connected data ensures that the DDS can be filed without delays or inconsistencies.
For official details, visit the EU TRACES portal or the EUDR Regulation (EU) 2023/1115 on EUR-Lex.
Avoiding Common EUDR Compliance Pitfalls
Even well-prepared organizations can face challenges when turning EUDR requirements into practice. Most pitfalls are not about missing data, but about how that data is collected, connected, and verified across complex supply chains.
- Fragmented data sources – Supplier, transport, and production data often sit in separate systems, making it difficult to prove a continuous chain of custody.
- Manual processes – Spreadsheets or paper-based collection create gaps and inconsistencies that fail traceability checks.
- Incomplete geolocation data – Missing or imprecise GPS coordinates make it impossible to verify origin at plot level.
- Static records – Data snapshots that aren’t updated in real time can’t reflect the actual flow of materials.
- Unverified supplier information – If supplier declarations aren’t linked to on-site or tracking data, risk assessments may remain unsubstantiated.
Avoiding these pitfalls means focusing on data integrity and interoperability. Every data point — from harvest to shipment — should be verifiable, time-stamped, and digitally linked to the product it represents.
This readiness doesn’t happen overnight, but companies that establish reliable traceability foundations early will find EUDR reporting significantly smoother.
How Smart Tracking Supports EUDR Data Readiness
Smart Tracking technologies — such as RFID, GPS, and RTLS — create the real-time visibility needed to connect product movement with verified origin data. By automating data capture at every key point in the supply chain, they reduce manual errors and fill the gaps that often prevent companies from meeting EUDR traceability expectations.
Each scanned tag, location update, or production event becomes a verified data point that links back to the material’s origin.
When combined with ERP and supplier information, these records form a continuous digital chain of custody — exactly what’s needed to prepare accurate Due Diligence Statements in the TRACES system.
Smart Tracking also enhances data quality and auditability.
Instead of relying on retrospective reporting, companies gain real-time proof of origin and movement, making risk assessments faster and more reliable.
In short, Smart Tracking doesn’t replace existing systems — it connects and strengthens them, helping organizations move from fragmented data to full EUDR Data Readiness.
Building EUDR Data Readiness is a continuous process of connecting reliable data with transparent supply chains.
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