Traceability is a growing requirement for many commodities. As explained in prior blog articles and a white paper, traceability comes in three forms; 1. Product Segregation – Certified materials and products are physically separated from non-certified materials and products at each step in the supply chain. 2. Mass Balance – Certified and non-certified products may be mixed however, the exact volumes of certified materials are tracked such that an equivalent volume of the product can be sold as certified. 3. Book and Claim – A company can obtain sustainability certificates for the volume of certified materials put into the system. The certificates can be bought and sold meaning that sustainability claims can be made via the existence of a certificate even though the actual product may not have been certified. Depending on the commodity and context, all three approaches are in use and need to be supported in CTRM software solutions. The growing need for traceability includes issues such as sustainability driven by consumers, and as an example, General Motors recently announced that ‘it plans to work within the industry to source only sustainable natural rubber in its tires, General Motors is helping to reduce its risk related to the
Continue reading Traceability is Transforming Commodities. This article appeared first on CTRM Center.