Digitalizing EUDR Due Diligence: Turning Compliance into a Reliable Process

For procurement and supply chain teams, compliance requires not only understanding the regulation but embedding it into daily operations. That means uniting data, systems, and suppliers under a transparent, verifiable process that can withstand regulatory scrutiny.

This blog explores how organizations can achieve that transformation — bringing structure, consistency, and accountability to EUDR due diligence through digitalization and seamless system integration.

Understanding Who is Affected

EUDR obligations vary depending on a company’s size and role within the supply chain. These factors determine the scope of due diligence required and the depth of documentation and verification necessary for compliance.

1. Company role
   The recently proposed amendments to the EUDR distinguishes between:

2. Company size
   The EUDR differentiates between enterprises according to the EU definition of micro, small, medium, and large companies:

• Large enterprises (Non-SME*) – Companies meeting at least two of the following three criteria:
• More than 250 employees
• Annual net turnover exceeding €50 million
• Annual balance sheet total exceeding €25 million
• Micro, small, and medium enterprises (SME*) – Companies meeting at least two of the following three criteria:
• 250 employees or fewer
• Annual net turnover of €50 million or less
• Annual balance sheet total of €25 million or less
• Micro and small enterprises* – Companies meeting at least two of the following three criteria:
• 50 employees or fewer
• Annual net turnover of €15 million or less
• Annual balance sheet total of €7.5 million or less

*Art. 3 of Directive 2013/34/EU and the national implementation laws define the thresholds, according to which companies are considered as micro, small, medium (all SME) or large undertakings.

Combined, these criteria define the level of due diligence required by each company under the EUDR.

Note: Information as of October 21, 2025. Subject to change depending on EU legislative decisions.

How Full Due Diligence Works in Practice

A practical example helps illustrate the scope. A German tire manufacturer sourcing natural rubber from Thailand and producing in China is considered an operator under the EUDR. Before placing products on the EU market, the company must:

• Identify in-scope products.
• Gather plot-level geolocation data from the rubber harvest sites in Thailand.
• Demonstrate legal compliance with Thai land and forestry regulations.
• Conduct risk assessments and apply mitigation measures such as audits if deforestation risks are identified.
• Generate and submit a due diligence statement through the EU TRACES system.

This workflow highlights that compliance goes far beyond documentation. It requires the operational integration of supplier data, risk analysis, and regulatory reporting across business systems.

Building the Due Diligence Process

Across all levels of obligation, four core steps define an effective due diligence process:

1. Preparing and collecting data – identifying in-scope products, engaging suppliers, and gathering product, transactional, and supplier information.
2. Analyzing and verifying risk – assessing geolocation and origin data to detect potential deforestation or non-compliance.
3. Mitigating and communicating risks – defining corrective measures, requesting further documentation, or commissioning audits where needed.
4. Reporting and documentation – submitting due diligence statements electronically through the EU information system and maintaining records for audits and annual reports.

Managing these steps manually across thousands of products and suppliers quickly becomes unfeasible — making structured digital processes essential.

The Role of Integration and Data Management

EUDR compliance affects transactional processes directly — every inbound and outbound product movement must be supported by a valid DDS. For most organizations, that means integrating EUDR data flows with existing ERP and procurement systems.

A typical digital workflow includes:

1. Order data transferred from the ERP to the compliance platform via API.
2. Automatic supplier questionnaires and risk analyses triggered by the system.
3. DDS creation and submission through the EU TRACES interface.
4. Verification and reference numbers sent back to the ERP, allowing purchasing or logistics teams to proceed without switching systems.

This creates a closed data loop where compliance checks happen automatically as part of normal business operations.

Standard Connectors vs. Custom Integrations

Organizations have two main approaches:

• Standard connectors such as those available in IntegrityNext for SAP S/4HANA and Celonis, which provide preconfigured integration with minimal setup.
• Custom API integrations, offering more flexibility for companies with complex or multi-ERP environments.

In both cases, success depends on harmonized master data, clear process ownership, and continuous data validation. Explore how the SAP and Celonis integrations work in real-world EUDR implementations in our detailed blog [here].

Preparing for Implementation

Several foundational steps support a successful rollout of EUDR compliance processes:

• Clarify your regulatory role: Operator, trader, or both.
• Map your IT landscape: Identify all systems that handle purchasing, product, or supplier data.
• Check data completeness: Ensure key attributes such as supplier geolocation, production periods, and legality documents are available.
• Define governance: Decide where DDS validation occurs, who owns risk review, and how non-compliance is escalated.
• Select integration approach: Choose between a standard connector or a custom API setup, considering available resources and timelines.
• Plan supplier engagement: Provide clear instructions, language support, and validation mechanisms for accurate data collection.

These elements help organizations move from regulatory awareness to operational readiness.