From Complexity to Clarity: How to Save 90% on Data Expenditure

While regulatory measures like the European Union Deforestation Regulation (EUDR) have been delayed, they underscore the challenges faced by organizations sourcing commodities from diverse global regions. The complexity of these supply chains—coupled with a constant influx of new technological solutions—can lead to decision paralysis.

Forward-thinking companies recognize that taking action, despite these uncertainties, is crucial for getting a head start on a rapidly changing regulatory landscape. FLINTpro recently collaborated with one such company aiming to understand deforestation exposure within its beef supply chain.

Challenge‍

One multinational food manufacturing company needed to assess deforestation and conversion risks across its extensive sourcing regions. Although some global assessments had categorized certain areas as “low-risk,” increasing scrutiny on tree-cover loss associated with beef production required a more nuanced, localized analysis. The company also sought to understand potential links with indigenous-owned and managed lands, requiring a granular, region-specific approach.

Solution‍

This multinational food manufacturing company partnered with FLINTpro due to the depth of our expertise in assessing deforestation risks, and our knowledge of unique environmental data.

Our Approach Involved:

Enhanced Data Granularity:
‍FLINTpro used a combination of data on forest-cover-loss drivers and temporal data sources to distinguish between different types of tree-cover loss, such as first-time clearing versus re-clearing. This allowed for a more detailed analysis, separating deforestation events from mere tree-cover loss—which may not indicate land-use change. Critically, the assessment also separated natural drivers like forest fire, which can create highly inaccurate risk assessments if not properly accounted for.

Risk Scoring System:
‍We developed a comprehensive risk scoring system, providing the company with a detailed heat map indicating risk levels across various regions and suppliers. The risk scores were informed by production rates, deforestation events, and indigenous-land considerations.

Prioritization of Efforts:
‍By demonstrating that the majority of regions had immaterial deforestation risk, the company could focus on gathering additional data on smaller areas of risk, ensuring efficient resource allocation.

Outcomes‍

FLINTpro’s work with the multinational food manufacturing company highlights the importance of localized, detailed analysis in mitigating environmental risks; you can’t manage what you can’t measure.

Cost Efficiency:
‍The detailed risk assessment conducted by FLINTpro reduced future data expenditure by more than 90%. Without this assessment, the company would have had to conduct extensive and costly evaluations across all sourcing regions—many of which would have been unnecessary.

Improved Traceability:
The insights gained from FLINTpro analysis are expected to drive improved traceability within the company’s supply chain. By understanding where the biggest risks lie, the company can engage with suppliers more effectively to mitigate those risks.

Strategic Decision-Making:
The risk assessment has provided the company with a clear understanding of deforestation risks, allowing for more informed decision-making regarding its sourcing policies. The company is now better equipped to align its policies with sustainability goals, particularly in regions where risks were previously underestimated.

Sustainability Starts with Precision‍

By leveraging FLINTpro’s expertise and advanced data-integration capabilities, the multinational food manufacturing company was able to significantly reduce costs while enhancing its sustainability practices. This demonstrates the value of targeted risk assessments to support sustainability efforts—particularly in complex supply chains.

‍Prioritize your supply-chain dependencies across sourcing regions.

See how FLINTpro Data is Different. Contact us at flintpro.com/contact

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