"Supplier approval is a thing of the past"

“In today's highly interconnected and fast-paced world, the food industry relies heavily on global supply chains to supply consumers with safe, high-quality products. Therefore, food traders have a crucial role in ensuring that food is safe and complies with regulatory requirements. However, ensuring compliance and managing risk in a complex supply chain network can be a daunting task. This is where the supply chain approval process comes into play.”

“Traditionally, the focus has been on supplier type-approval; however, it is increasingly important to adopt a more comprehensive approach that is not limited to direct supplier type-approval but encompasses the entire supply chain. Supply chain approval ensures that all suppliers in the supply chain comply with the supplier's requirements and regulations, thus protecting consumers from potential health risks and ensuring the integrity of the food supply. Agriplace is creating a new product category by allowing its users to monitor direct suppliers as well as the entire supply chain.”

But why is supply chain approval so important?

“First of all, it is a requirement for the next supply chain legislation in the European market. This new legislation will oblige companies to monitor compliance with human rights and environmental standards throughout the supply chain.”

“It has already been adopted by some markets and it will be adopted across Europe in 2024 thanks to the European Due Diligence Act.”

“Second, Supply Chain Approval provides a company with a holistic view of the entire supply chain network it relies on to supply its products or services. This includes not only direct suppliers, but also all other participants in the supply chain, such as farmers, collection centers, and specific products from these farmers.”

By ensuring the compliance of the entire supply chain network, a company can identify any weaknesses or bottlenecks that may affect the overall security and integrity of the supply chain. “In addition, Supply Chain Approval helps a company mitigate the risks associated with its supply chain down to the parcel level. By informing suppliers and allowing them to inform their sub-suppliers, you can help prevent risks and ensure that the product obtained conforms to your customers' requirements.”

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