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CLIENT CASE STUDY


Dutch Sustainable Trade Initiative: Insights into traceability solutions and technologies

Overview

The Dutch Sustainable Trade Initiative (IDH) is an independent foundation that accelerates sustainable trade by building impact-oriented coalitions of front-running companies, civil society organizations, governments and other stakeholders. Funded through a €130 million grant by Dutch, Danish and Swiss governments, it started in 2008.

Accenture Strategy helped IDH undertake a traceability assessment for the Traceability Working Group (TWG) consisting of the key Fast-moving Consumer Goods (FMCG) companies, growers and traders in the palm oil industry.

As a result of their collaboration with Accenture Strategy, IDH and the TWG have a comprehensive overview of how traceability technology solutions can help overcome the challenges associated with implementing traceability in palm oil.

DOWNLOAD DUTCH SUSTAINABLE TRADE: INSIGHTS INTO HOLISTIC TRACEABILITY SOLUTIONS AND TECHNOLOGIES [PDF]

Opportunity

Traceability is a significant challenge in the palm oil industry, given its complex international supply chains, in which the sources of supply are a key to competitiveness and therefore are often a “trade secret” that suppliers are reluctant to share. Compounding the problem, traditional, state-of-the-art solutions are expensive and often rely on information that is not readily available. With a price sensitive customer base, suppliers are divided about the industry’s ability to command premium prices for a sustainable, traceable product.

IDH resolved to undertake a traceability assessment for the Traceability Working Group (TWG), consisting of the key Fast-moving Consumer Goods (FMCG) companies, growers and traders in the palm oil industry.

Outcomes

The Accenture Strategy team interviewed key stakeholders in the palm oil value chain including growers, suppliers and brands, to understand the key traceability issues and business requirements. It was also important to understand the technology requirements for a palm oil traceability solution in order to shortlist suitable options.

The result: a comprehensive overview of how traceability technology solutions can help overcome the challenges associated with implementing traceability in palm oil. In addition, IDH and the Traceability Working Group have a clear assessment of which vendor solutions were adequately suited to their specific needs. This analysis was critical in helping members progress towards the goals they had set to trace palm oil to the mill, and eventually to the plantation, by 2015.