Traceability Needs of Commodity Firms Growing

A story in today’s Financial Times highlights the growing need for traceability by commodity firms. Olam is under attack for both excessive deforestation in Africa and lack of visibility into its suppliers around its Palm Oil business while many of its competitors have committed to sustainable sourcing of the commodity. Olam is said to be in the process of vetting its suppliers and says it has reduced the total number of its suppliers as it checks on their adherence to standards. It now lists 14 suppliers according to the FT article. In fact, with growing environmental and social awareness, consumers are demanding products that originate from sustainable and socially acceptable suppliers. They will even pay a premium for products that meet these requirements. At the same time, inter-government organisations, trade bodies, and industry associations are all also seeking to set standards around how commodities are produced and where they are produced. The impacts range from Cotton and Coffee, for example, to biofuels. The ability to trace a commodity from point of origin to end consumer (traceability) is in turn becoming a major requirement of CTRM and CM solutions in the industry. As the demand for traceability of varying types continues
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Traceability Needs of Commodity Firms Growing appeared first on CTRM Center.