Case Study: Apollo implements new EUDR compliance technology

Gurugram, India – Apollo Tyres has partnered with Emertech Innovations to establish an integrated compliance and traceability system for its natural rubber (NR) supply-chain under the EU Deforestation Regulation (EUDR).

The implementation covers 56,491 source plots spanning around 150,000 hectares across India and several international sourcing markets, according to an Emertech case-study published 5 Oct.

The plot data, said the technology partner, comprises 43,932 point-based plots and 12,559 polygon-based plots within Apollo's NR supplier network.

The process involves five stages – engage; validate; assess; trace and file – each building on the one before, with an administrative portal that gives Apollo’s teams one view across all of them.

Under the system, NR suppliers submit GeoJSON files, sourcing information, risk evidence and supporting documents through a dedicated supplier portal.

The platform checks submissions for file structure, coordinates, geometry and mandatory plot information, as well as the correct use of points or polygons.

Using a satellite-based deforestation analysis tool, Emertech examines land within the submitted plot boundaries, comparing historical satellite imagery with current forest-cover and land-use information.

The analysis, it said, assesses evidence of changes after the EUDR regulatory cut-off date of 31 Dec 2020 and assigns a risk result to each plot.

The system also flags potentially risky plots which will be “held for review” before being allowed into the compliant supply-chain.

Emertech has “integrated” the compliance platform with Apollo's existing ERP and operational systems, allowing validated supplier and plot information to be linked to all supply-chain documents.

These include purchase-orders, incoming consignment notes, goods receipts, material and batch records, production transactions, finished products and export shipments.

As described by Emertech, the process maintains the connection “from the land where the NR originated to the product eventually placed on the European market.”

For EU-bound shipments, the system consolidates the applicable source-plot information and prepares the relevant due diligence statement.

Furthermore, the platform is integrated with the EU Information System within the TRACES NT environment, allowing statements to be filed directly with the EU system.

Submission status and reference numbers are subsequently returned to Apollo's central “administrative portal,” which provides “one view across every stage for compliance, procurement and operational teams.”

The portal also maintains a record linking all declarations with the suppliers, source plots, risk evidence, production records and shipment concerned.

“EUDR requires a high degree of transparency and traceability across the NR supply chain,” said Shibu George, group head, advanced manufacturing & enterprise application, at Apollo Tyres.

The collaboration with Emertech, he added, had enabled Apollo to bring together “sourcing, traceability and geospatial validation capabilities at scale,” covering a significant NR sourcing footprint.

“This implementation strengthens our ability to establish end-to-end visibility from source to finished product,” concluded George.