Innovating low-cost approaches to improve traceability and supplier information management

Sustainable sourcing of raw materials is shifting from something “good to do” to a matter of compliance to meet legal or market requirements. For many consumer brands, the complexity of the raw material supply chain means that the burden of proof is left to the major traders or refineries that provide the bulk of the raw materials needed for the consumer goods manufacturers. The lack of traceability ultimately means that any corporate sustainability reporting is based on aggregated data provided by the refinery and is at best an approximation.

In 2023, we know that WAGS certified members are connected to approximately 47 palm oil mills in Malaysia (10% of total mills in Malaysia), and many dealers. We know very little beyond this, we don’t know who they are connected to. 

To address this challenge, WAGS is working directly with mills and their dealers to improve their traceability reporting. Through WAGS Trace, we help mills organise their supplier information and volume sales for annual traceability reporting. We help them register their suppliers in a systematic way, and where needed, help verify their NDPE and legal compliances, as well as support them towards meeting sustainable certification standards. In this way, we can build a robust monitoring and reporting system, and ensure accountability in what is reported from the ground-up. 

To date, of the 47 palm oil mills in Malaysia (10% of total mills in Malaysia), we have established working partnerships with 11 of these mills (23%). We have now started to pilot WAGS Trace among this group of mills and there is a significant opportunity to expand our programme, and further our mission to make a substantial impact in making traceable AND inclusive palm oil a reality. 

Find out how key stakeholders within the sustainable palm oil chain can work together to be inclusive of independent small producers in the video below.

Get in touch with us to see how we can support your mills and dealers improve traceability and supplier information management.