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This guide is designed for advanced practitioners, those who have moved beyond the basics and are now focused on implementing scalable, auditable, and digital-first solutions. Our goal is to help you navigate the complexities of EUDR at an advanced level, and to demonstrate how an all-in-one compliance solution with end-to-end traceability can set your business apart, ensuring both compliance and competitive advantage.
The European Union Deforestation Regulation (EUDR), effective in Dec 2025, is transforming the way companies import, trade, and distribute regulated commodities. By now, most organizations are already familiar with the fundamentals: what EUDR is, how Due Diligence Statements (DDS) work, and why risk assessments matter. This guide is designed for advanced practitioners, those who have moved beyond the basics and are now focused on implementing scalable, auditable, and digital-first solutions.
Our goal is to help you navigate the complexities of EUDR at an advanced level, and to demonstrate how an all-in-one compliance solution with end-to-end traceability can set your business apart, ensuring both compliance and competitive advantage.
What is EUDR?
The EUDR (European Union Deforestation Regulation) is a European regulation for deforested products. Starting in 2026, all products imported into the European Union derived from raw materials such as:
These commodities will be subject to this regulation, which aims to ensure that products marketed in the European market do not contribute to global deforestation.
Implications for Companies
The EUDR requires companies importing or trading these products within the EU to:
The Compliance Challenge
At this stage, the challenge for companies is not understanding the regulation, but operationalizing it. Complex supply chains, multiple supplier types (SMEs, non-SMEs, EU-based, and non-EU), and the management of high volumes of data create challenges such as:
- Managing supplier compliance across geographies.
- Collecting, validating, and storing precise geolocation data.
- Linking raw material to finished goods with batch-level traceability.
- Integrating EUDR compliance into existing ERP and procurement systems.
- Preparing for audits and minimizing reputational risks.
These pain points highlight the need for digital-first compliance frameworks that go beyond manual processes or fragmented tools.
Companies face numerous challenges:
From Obligation to Opportunity
Although EUDR imposes strict obligations, it also offers strategic opportunities. Forward-looking companies can leverage compliance to:
- Build trust with customers, investors, and regulators.
- Strengthen collaboration with suppliers by providing them with tools and support.
- Future-proof their operations against evolving ESG and sustainability regulations.
- Differentiate themselves competitively through transparency and proof of deforestation-free sourcing.
What is MARCO Track & Trace?
MARCO Track & Trace is a traceability tool developed by Finboot that ensures compliance with the EUDR regulation. Its simplify EUDR compliance and elevate sustainability reporting with digital-first solutions.
Key Features
MARCO Track & Trace automates EUDR compliance, Manage the full cycle — from supplier data collection, to deforestation risk assessment and monitoring to automated reporting of DDS to TRACES — all in one platform. No need for multiple tools.
A comprehensive solution integrates all EUDR requirements into a single platform, removing the need for fragmented tools and manual processes. Key capabilities include:
- Supplier collaboration portals for DDS and geolocation data.
- Automated deforestation risk assessment with geospatial monitoring.
- Direct integration with TRACES for DDS management.
- ERP integration for automated PO capture and system alignment.
- Creation of 'digital twins' linking raw material attributes to final products.
MARCO Track & Trace offers:
Supplier Portal
Central hub to engage suppliers, collect Due Diligence Statements (DDS) and land plot geolocation data (GeoJSON), and streamline collaboration across the value chain.
Deforestation risk assessment
Advanced geospatial monitoring and remote sensing to verify land use, detect deforestation risks, and trigger alerts to ensure EUDR compliance.
Automated TRACES reporting
Direct API connection with TRACES for seamless, accurate, and fully automated DDS management (retrieve, create, withdraw, amend) — eliminating manual reporting.
Supplier risk management
Assess supplier performance against environmental, social, and human rights criteria (e.g. child labor, indigenous communities) with centralized tracking and oversight.
Digital traceability
Link EUDR attributes of raw materials to final products, ensuring end-to-end chain-of-custody visibility, transparency, and audit readiness.
The platform is structured in workflows that automate different processes related to EUDR compliance:
EUDR compliance processes differ depending on whether purchases are made within the EU or imported from outside the EU. Below, we detail both workflows, illustrated with real-world scenarios.
When sourcing commodities already placed on the EU market by non-SME suppliers:
- Buyers only need to reference the supplier’s DDS (reference and verification number).
- Automated verification confirms the data via TRACES.
- Once verified, DDS information is linked with production batches, ensuring audit readiness.
Capturing Supplier’s DDS Information
The only necessary data is the information from the existing DDS:
This data can be obtained:
Go to TRACES to Pull DDS:
Marco Track & Trace Verification and Analysis
The system:
AÑADIR IMAGE
3.2.3 Confirmation and Linking
Once the information is verified:
When importing regulated commodities from outside the EU (e.g., palm oil from Indonesia, cocoa from Ghana):
1. Capture purchase order data, including HS codes and supplier IDs.
2. Collect geospatial data (GeoJSON) from suppliers to identify the origin of raw materials.
3. Perform automated deforestation risk assessments, checking cut-off dates and land-use history.
4. Generate and submit a DDS through TRACES.
5. Link DDS information with internal batch IDs for full traceability.
Capturing Purchase Order Information
The first step consists of collecting basic purchase order information:
Geospatial Data Collection
The second step involves obtaining the geospatial data needed to verify the origin of the products:
*only for wood
This information can be collected in several ways:
This document outlines steps and properties related to a purchasing process, likely for materials subject to deforestation regulations (EUDR).
Integration Step: DDS retrieve from Traces: This is an automated integration step to retrieve DDS data. The output data includes:
The document also notes that the GeoJason property in the asset template overwrites previous ones if both are present.
Deforestation Risk Analysis
Once the information is collected, an automated integration step that uses PO information (Commodity Type, Commodity code (HS Code)), supplier information, or DDS retrieve from Traces (Geographic data) as input. The output data includes:
MARCO automatically performs a deforestation risk analysis:
DDS Generation and Submission to TRACES
If the previous Deforestation Risk Analysis step results is positive, MARCO Track & Trace automatically submits the Due Diligence Statement (DDS) to TRACES:
Additionally, for complete traceability, companies can link DDS with production batches (refer to EUDR Plus for more details).
In case of negative deforestation risk results, we activate an alert system and mitigation actions (according to client processes).
Important: The DDS remains available for modifications for 72 hours, after which it becomes a legal document in the TRACES portal.
Important: TRACES does not verify the data, so it is important to conduct a risk assessment that will provide you with analysis required.
This final step is also the most complex one because involves linking the DDS with specific production batches by adding raw materials to an inventory with properties like:
This final step involves linking the DDS with specific production batches:
The European Union Deforestation Regulation (EUDR) requires operators and traders to ensure that timber and derived products placed on or exported from the EU market are deforestation-free and legally harvested. Below are practical scenarios demonstrating how compliance can be managed when dealing with timber pulp, paper rolls, tissues, and reselling finished goods.
This business case demonstrates traceability from raw material silos to finished goods, ensuring compliance at every step.
Production of Jumbo Rolls from Timber Pulp
Scenario A – Purchasing from Non-SME Suppliers within the EU
➡️ In this case, the buyer does not need to create a DDS for the raw material itself, but only for the finished jumbo roll.
Scenario B – Purchasing from SME Suppliers in the EU or from Non-EU Suppliers
➡️ In this case, the buyer carries the full responsibility of ensuring due diligence both for the raw material and the final product.
Production of Tissue Products (e.g., rolls, napkins, boxed tissues)
When timber pulp is processed into jumbo rolls and subsequently into tissues, napkins, or other paper products:
This structure allows the operator to provide, upon request from auditors, authorities, or customers:
Reselling Finished Products (Tissue Rolls, Boxed Paper, etc.)
When a company purchases finished products from third parties:
For resale, the buyer can generate a compliance dossier for each batch or provide digital access to customers, demonstrating compliance and traceability throughout the supply chain.
Key Takeaways Across All Scenarios
To learn more about other scenarios, read our blogs:
EUDR Compliance: Understanding your Company’s Position in Chemistry
EUDR Compliance: Understanding your Company’s Position in Textiles
Complete Automation
MARCO Track & Trace is designed to integrate seamlessly with your existing systems:
“Everything that you’re going to see in this demo should be completely integrated. What that means is that no manual process should be performed.”
Integrations include:
PO Tagging
The system can automatically identify which purchase orders are subject to EUDR:
Adaptation to Different Scenarios
The platform is flexible and can adapt to different needs:
MARCO Track & Trace integrates with OpenAtlas to perform automated deforestation risk analyses:
“We are sending this information to our partner that is called OpenAtlas. We can also use other different deforestation suppliers.”
The process includes:
The system evaluates risk based on clear criteria:
Support for Small Suppliers
The system is designed to facilitate compliance even for small suppliers:
“Part of our service is also to support your suppliers… helping them with training on how to use the tool, helping them also to gather the data.”
This includes:
MARCO Track & Trace creates a “digital twin” containing all information related to the EUDR process:
“An asset for us is a digital twin that contains all the information related to the process that we are going to trace, which is this EUDR compliance.”
This allows:
Allocation of Raw Materials to Final Products
A key advantage of the system is the ability to link raw materials with final products:
“We will automatically connect all this deforestation risk to the process you are going to produce, and at the batch level, we will allocate that raw material to your final process.”
Benefits:
The EUDR deadline is approaching quickly, and companies must move beyond theory to implementation. By adopting an integrated compliance solution, businesses not only ensure regulatory alignment but also gain resilience, transparency, and competitive advantage.
Contact us today to request a personalized assessment and discover how digital-first compliance can prepare your business for December 2025 and beyond.
To support organizations in preparing for EUDR compliance, we have developed practical implementation plans. These resources are designed to help different types of companies—whether aiming for a fast-track adoption or a more extensive integration—understand what the rollout could look like in practice. Both plans are available to download for free and can serve as a reference to structure your own journey toward compliance.
Organizations can adopt EUDR compliance at different speeds depending on complexity.
EUDR Basic Implementation Plan (2 weeks)
The Basic Implementation Plan is designed for organizations that need to get started quickly, with minimal complexity, and within a short timeframe. It covers a two-week period, focusing on system setup, user onboarding, and integration with the EU’s TRACES platform.
Week 1 – Kick-off and Scoping
The project begins with a formal launch and an introductory session. During this stage, the compliance team presents the overall process and clarifies the scope of work. Key users—those responsible for managing and operating the system—are identified. This ensures responsibilities are clear from the start and that the right people are involved in the decision-making process.
Week 1 – User Onboarding and Training
Shortly after kick-off, users are onboarded onto the platform and given structured training. At this stage, the system is tested with sample or “dummy” data to validate workflows and simulate interactions with TRACES’ acceptance environment. This hands-on testing builds confidence among users and prepares them for operating the platform under real conditions.
Week 2 – System Release and TRACES Integration
The final stage of the Basic Plan is the go-live moment. The system transitions into production, using real data and becoming fully integrated with TRACES. From this point, the organization is ready to generate, submit, and manage Due Diligence Statements (DDS) in line with EUDR requirements.
EUDR Plus Implementation Plan (2 months)
The Plus Implementation Plan is a more comprehensive rollout that spans eight weeks. It is intended for organizations with more complex supply chains or those looking to fully integrate EUDR compliance into existing systems such as ERP platforms.
Week 1 – Discovery and Design
The process begins with scoping sessions aimed at mapping supply chains and identifying compliance requirements. Together with the implementation team, organizations design workflows and outline the integration roadmap. This stage often involves visual tools (such as Miro boards) to create a detailed representation of the planned ecosystem.
Weeks 2–3 – Sandbox Configuration
The schematic from the discovery phase is translated into a functional sandbox environment. Workflows, properties, and supply chain configurations are set up according to the agreed scope. Selected users are onboarded to the sandbox, demo sessions are conducted, and data mapping for future integration begins.
Weeks 4–5 – Testing and Validation
During this phase, the configured environment is tested with real scenarios. Selected users validate the workflows, and iterations are made based on their feedback. In parallel, data mapping is refined, and the groundwork for ERP integration is prepared, including delivery of API documentation. This ensures that once the system moves into production, it is fully aligned with the company’s data architecture.
Weeks 6–7 – Integration and Requirements Validation
The production ecosystem is released and integrated with internal ERP systems. This step closes the loop between compliance operations and the company’s broader digital infrastructure, ensuring that data flows seamlessly across platforms.
Week 8 – Final Onboarding and Transition to Business-as-Usual
The rollout concludes with final onboarding sessions for a wider team, moving beyond the core group of early users. By the end of this phase, EUDR compliance becomes embedded into everyday business processes, and the organization enters a “business as usual” mode.
Choosing the Right Plan
The Basic Plan provides a rapid, low-barrier path to compliance, while the Plus Plan delivers a deeper, more customized integration. Organizations can decide which approach best fits their size, complexity, and internal resources. In both cases, the structured, phased approach ensures a smooth transition into EUDR compliance, minimizing risks and maximizing efficiency.
Digital Traceability for Deforestation-Free Supply Chains: The Evonik Case
As one of the world’s largest specialty chemical companies, Evonik has leveraged digital compliance to automate DDS management, strengthen supplier collaboration, and scale transparency across global supply chains.
The implementation of EUDR represents a significant challenge for companies importing or trading regulated products in the EU. However, with MARCO Track & Trace from Finboot, this process is greatly simplified:
Contact us today to discover how we can help you successfully navigate the EUDR requirements and prepare your business for 2026.
Request a personalized assessment
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