EUDR Readiness in Practice: Governance, Processes, and Data Management

In Episode 2 of our EUDR webinar series, in collaboration with business consultancy firm Horváth, we unpacked what “being ready” really looks like: governance you can execute, processes buyers can actually use, and the data foundation to make it all flow. Here’s the full recap with practical steps you can apply to ensure EUDR readiness.

What Does Operational Readiness Look Like for the EUDR?

Operational readiness for the EU Deforestation Regulation (EUDR) is not a single milestone, it’s a structured transformation project that embeds compliance into everyday workflows. In the second part of our EUDR webinar series, Dr. Stefan Weber, Senior Project Manager for Green Transformations at Horváth, outlined that EUDR readiness rests on three fundamental pillars.

Pillar 1 – Status Quo Assessment: Understanding Scope and Impact

Every EUDR journey starts with one essential question: Are we even in scope?

This is the foundation for all subsequent action, and it begins with an impact analysis — mapping your product portfolio against Annex I of the regulation.

1. Conduct the impact assessment
   Export your product list from SAP or any another ERP system and include HS codes. Match each code to Annex I to determine whether the product category falls under the EUDR.
2. Assess your goods-flow scenarios
   Companies can apply the following logic to identify direct and indirect EUDR exposure:                                                                                                                         
   • Not listed in Annex I → Not EUDR-relevant.
   • Listed in Annex I and imported into the EU → Direct impact, automatically in scope.
   • Listed in Annex I and purchased within the EU → Depends on purpose, e.g.:
     • Internal use only (e.g., coffee for company offices) → Not in scope.
     • Further processed into a non-Annex I product (e.g., rubber tire on a finished car) → Not in scope.
     • Further processed into an Annex I product → In scope.
     • Product placed on the EU market or exported → In scope.
       
       Many firms choose a simplified approach: If a material is listed in Annex I, they treat it as in scope for due diligence. This conservative method saves complexity but can inflate the workload.
3. Verify data availability
   Most companies find that they don’t yet store HS codes for all materials. Populating these codes across ERP systems takes time, so businesses should tackle this early. It’s the key prerequisite for any software tool that will later automate EUDR due diligence.

Pillar 2 – Organizational Readiness and Risk Analysis

Once the scope is clear, the next step is to anchor EUDR requirements in your organization by defining ownership, governance, and cross-functional collaboration.

1. Build awareness and internal buy-in
   The EUDR might look like just another sustainability acronym, but it’s far more operational. Unlike disclosure-based frameworks such as the CSRD, EUDR compliance is largely transactional.
   Every purchase order involving an Annex I material must meet deforestation-free criteria. That means every buyer, logistics planner, and customs officer needs to understand their role.

2. Define organization and governance
   Different setups can work depending on the company structure:

Centralized governance with decentralized execution is usually the sweet spot: sustainability defines the framework while the various business functions deliver.

3. Integrate EUDR into processes
   Once roles have been defined, EUDR requirements must be integrated into core business workflows. This means identifying where EUDR steps intersect with procurement, logistics, sales, and data management processes.
   
   Key process questions to ask:

• Do we have mechanisms to separate compliant and non-compliant materials in logistics and warehousing?
• Are EUDR criteria included in RFPs and supplier selection?
• Do our supplier contracts include obligations to provide geolocation and compliance data?
• Are there KPIs and tracking measures to monitor risk and reporting deadlines?

4. Establish risk analysis workflows
   Risk assessment sits at the heart of operational readiness. The standard process chain looks like this:
   
   

   Impact Analysis → Supplier Data Requests → Risk Assessment → Mitigation Measures & KPIs → Documentation → Reporting.
   
   Within the risk assessment stage, relevant subprocesses include:

• Data validation and analysis: checking supplier-provided geo-coordinates, shipment data.
• Risk scoring and evaluation: country benchmarking, commodity-specific exposure.
• Mitigation measures: supplier engagement, alternate sourcing, satellite verification.

Pillar 3 – Anchoring the EUDR End-to-End

Operational readiness becomes real when EUDR requirements move from policy to practice and when they are embedded directly into procurement, logistics, sales, and supplier management. The table below summarizes what this integration looks like across key functions.

Building the Digital Backbone of EUDR Readiness

Operational readiness doesn’t stop with process charts, it relies on a solid data architecture and automation.

Key components of digital readiness:

• Early IT involvement: Bring your IT teams in at the start. EUDR requires data from ERP, SRM, procurement, and sustainability systems to flow seamlessly.
• System mapping: Identify which internal systems manage supplier data, order information, and HS codes. Define which ones will interface with the official EUDR platform.
• API and integration strategy: Decide early whether to build integrations in-house or adopt pre-built connectors (e.g., for SAP or Celonis).
• Data preparation:
  • Collect and map HS codes.
  • Consolidate product data (mass, volume, origin, etc.).
  • Clean up supplier master data – even collecting email addresses often takes weeks.
  • Identify pre-existing due diligence statements (DDS) in your systems.
• Supplier capacity building: Many small suppliers lack EUDR knowledge. Provide templates, tutorials, and multilingual guidance to help them gather and submit geolocation (GPS) data correctly.
• Automation readiness: Once core data is clean and systems are mapped, automation becomes the engine that scales compliance – connecting supplier inputs, risk checks, and reporting.

Digital enablement ensures that EUDR processes don’t live in Excel sheets or one-off emails but in connected, traceable systems that can withstand audits and scale with regulatory evolution.

How IntegrityNext Powers End-to-End EUDR Compliance

IntegrityNext turns EUDR readiness into action, automating due diligence from supplier onboarding to EU portal submission.

What our EUDR solution delivers:

• End-to-end automation – from supplier outreach and multilingual onboarding to risk analysis (including AI and satellite imagery analytics), risk verification, and direct DDS submission to the EU Information System.
• Seamless integration – data flows via RESTful APIs through IntegrityNext, to and from the EU system, and back to your internal systems such as SAP and Celonis, so that your internal teams never have to leave their business environments.
• Supplier enablement at scale – access to 2M+ onboarded suppliers, built-in training materials, multilingual support, and dashboards to monitor data quality and completion rates.
• Ongoing compliance – automatic updates as EU rules evolve, dedicated project support, and periodic risk assessments to keep due diligence data current.

The result: A faster, scalable, and fully traceable EUDR compliance process that runs seamlessly in the background — turning complex regulation into an integrated part of daily operations.

The End Goal: EUDR Embedded in Daily Operations

Operational readiness means that EUDR tasks are no longer a separate project — they’re part of business as usual.

Purchasers check compliance as naturally as price and quality considerations, logistics teams segregate materials, IT systems exchange validated data automatically, and suppliers understand expectations and deadlines.

When these elements align — governance, processes, data management, and supplier collaboration — a company achieves true EUDR operational readiness:

• Clarity on scope and risk.
• Control through structured processes.
• Confidence through automated, verifiable data.

Want a deeper dive? Explore our EUDR solution overview and white paper for process checklists, integration patterns, and land-plot verification details.

Disclaimer: The information in this article is for general guidance only and does not constitute legal advice.