How a Global Tire Manufacturer Uses TraceX Solutions for Natural Rubber EUDR Compliance

A global tire manufacturer leverages TraceX solutions to ensure EUDR compliance for natural rubber through risk assessment, geo-location traceability, and seamless EU-IS system integration for due diligence.

About the Company

A tire manufacturing company with a global presence, this organization serves markets across Europe, the Americas, and Asia, focusing on agricultural, industrial, and multipurpose tires. Operating multiple production facilities, it produces thousands of tires daily, emphasizing innovation, performance, and customer satisfaction

Industry

Tire Processor

Region

India

Use Case

EUDR Compliance for Natural Rubber

Features Used

Supplier GeoJSON Upload

Risk Assessment & Mitigation with satellite Data

Compliance Check

API Integration with Client SAP

API Integration with EU-DDS

Ensuring compliance of natural rubber in tire manufacturing involves tracking its sourcing and traceability to meet EUDR standards, mitigating deforestation risks through geo-location data, and enabling due diligence statements via regulatory integrations.

Challenges

The company had difficulty tracking the origin of rubber used in tire manufacturing. Without precise geo-location data, proving that their rubber sourcing was deforestation-free became a major hurdle.

Sourcing natural rubber from regions with high deforestation risk made it essential to conduct compliance on farm plots through risk assessment tool. However, they lacked an efficient way to integrate remote sensing data into their risk evaluation process.

Existing internal systems like SAP, MES (Manufacturing Execution Systems), and AS400 required seamless integration for tracking raw materials (RM) to finished goods (FG). This integration was crucial for maintaining traceability throughout the supply chain.

To export tires to the EU, the importer needed to submit a ‘Due Diligence Statement’ in compliance with EUDR guidelines and receive a Reference Number from the EU’s system, a process that required precise and accurate data exchange.

Solutions

Implementing a Technology-Driven Traceability and Compliance Platform

To overcome these challenges, the tire manufacturer partnered with a TraceX to implement a comprehensive solution:

1. Risk Assessment through Remote Sensing Integration:

This solution uses satellite data and geospatial analytics to assess the origins of natural rubber and identify potential deforestation risks. By providing a precise view of sourcing regions, manufacturers can proactively mitigate environmental concerns and align with EUDR requirements for deforestation-free products.

2. Compliance Check

TraceX’s inventory system incorporates two levels of compliance checks. First, a pre-dispatch check is conducted where an initial GeoJSON file is shared for an Apriori compliance review. If the inventory is compliant, the upstream supplier is notified to proceed with the shipment. After shipment, a post-dispatch check is performed, where the supplier provides the final GeoJSON file for a final compliance review, ensuring that all procured goods meet EUDR standards.

3. Middle Mile Traceability:

Linking raw materials like natural rubber with finished products such as tires ensures complete traceability across the supply chain. This visibility helps track every step of the process, from sourcing to production, ensuring the supply chain complies with EUDR regulations on traceability and transparency.

4. Integration with the EU-IS System:

This integration allows tire importers in the EU to submit due diligence statements for regulatory verification. By logging data and receiving reference numbers, companies demonstrate adherence to EUDR compliance measures, reducing risks of non-compliance and facilitating smoother trade relations with the EU. This step ensures data consistency and regulatory alignment for all stakeholders involved.

Key Takeaways

Achieving Compliance and Business Efficiency: The implemented solution delivered several benefits, enhancing the company’s ability to comply with EUDR regulations while improving operational efficiency:

Enhanced Transparency and Traceability: With geo-location data and blockchain records, the tire manufacturer could ensure deforestation-free rubber sourcing, providing verifiable proof of compliance.

Proactive Risk Management: By leveraging remote sensing data for risk assessment, the company could identify potential deforestation risks early and take corrective actions before importing raw materials.

Improved Integration and Workflow Efficiency: The integration with SAP/MES/AS400 enabled a smoother flow of traceability data across the supply chain, reducing manual errors and increasing the speed of compliance reporting.

Streamlined Compliance Process: The automated Due Diligence Statement submission and reference number retrieval from the EUDR-IS system made it easier for the EU importer to meet regulatory requirements, ensuring that exports remained compliant and uninterrupted.

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How a Global Tire Manufacturer Uses TraceX Solutions for Natural Rubber EUDR Compliance

About the Company

Industry

Region

Use Case

Features Used

Challenges

Solutions

Implementing a Technology-Driven Traceability and Compliance Platform

Key Takeaways

Start using TraceX

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Download your How a Global Tire Manufacturer Uses TraceX Solutions for Natural Rubber EUDR Compliance here

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