FEATURE TIMBER SUPPLY
Timber Chain in Action
Anna Roberts, head of business development at iov42, reflects on how this gamechanging, technology has been transforming the supply chain, from sawmills in Eastern Europe, to the tropical hardwoods of Peninsula Malaysia, to warehouses in the UK.
I
n 2021, iov42 launched an innovative blockchain-inspired
and the debate surrounding what constitutes due diligence. In this sense,
timber supply solution, in partnership with Preferred by
Timber Chain can act as a vehicle for exporters to hold their information, so
Nature: Timber Chain. Specifically designed to tackle the
that each importer can use as much or as little of it as is necessary to fulfil
notorious challenges and risks that have defined the timber
EUTR (or equivalent) obligations.
industry, including corruption, lack of transparency, and
This is proving to be revolutionary for the timber industry. Digital due
ever-evolving regulations, Timber Chain was quickly embraced by Carl
diligence tools can support the importers in the auditing process, saving them
Ronnow, a global wood trading company of over 30 years.
a huge amount of time (months, in some cases) by allowing them to select
The tracking of complex supply chains within the timber industry
relevant information in real time without having to request it separately.
has always been problematic, regardless of the size of the supplier, as
Timber Chain is also making it easier for importers to see all the stocks that
any market built around the growing of produce will undoubtedly face
a shipment comprises, and all the documents associated with those stocks;
difficulties. Unpredictable weather, political volatility and the merging
a feat which would otherwise be extremely difficult and labour intensive,
and disbandment of traders have all historically challenged the timber
enabling improved and more accurate data standardisation and validation.
sector. But what impacts supply chains the most is the mismanagement
Having experienced the benefits of this time-saving tech, one UK importer
of material due to a lack of clarity. This is where DLT, or distributed ledger
commented: “We were getting this level of information infrequently in the past.
technology, can help. It’s a system of recording information in a way that
Solutions like Timber Chain allow us to push back on our suppliers and hold them
makes it impossible to change or cheat the system. It’s also able to assist
accountable. If they choose not to engage to the same extent as a company like
traders with meeting new changes in regulations and shipping policies.
Carl Ronnow, then we can simply decide not to trade with them. As a result, we
Having recognised the importance of increasing levels of transparency
now put Carl Ronnow at the top of our list of Malaysian suppliers.”
and security, Timber Chain was curated to equip traders such as Carl
Given the initial success with Carl Ronnow, Preferred by Nature
Ronnow with a much-improved means of meeting their commitment
and iov42 plan to expand the service to accommodate other forest and
to providing comprehensive, real-time due diligence for their buyers,
agriculture commodities across Preferred by Nature’s areas of expertise.
supported by third party audits and verification. All data is stored and
Through ongoing trials and testing, iov42 and its partners will continue to
secured by iov42’s distributed ledger technology, ensuring complete data
improve the usability of the tool with the ambition of further improving
integrity and confidence.
the data sharing process between the exporter and importer.
The capability of blockchain-inspired technology to ensure regulatory
Reducing the time taken for exporters to input data will remain a key
compliance is even more valuable for the timber industry ahead of the
focus given its value to the sector in, for example, allowing for a smoother
upcoming EU regulation around deforestation-free products. Such regulation
exchange of data between sawmills and exporters. iov42 also hopes to step
will inevitably need to be syndicated across other territories (including in the
up its collaboration with governments to enable improved efficiency of
UK through the Environment Act 2021), so wood enterprises will need to
government document issuing and enforcement checks.
adjust accordingly if they wish to continue trading as normal. Timber Chain
Timber Chain is an example of what is possible when technology is
has been able to provide Carl Ronnow with the confidence that they’ll be
developed to address a real-world issue: in this case, the transparency,
able to adapt to any changes quickly and easily, due to its ability to verify that
efficiency, and resiliency of international timber markets. Integrating identity-
organisations are compliant with set certification and verification criteria.
centric, trust-building technology with expertise in certification has set a new
Unlike conventional methods, blockchain-inspired tools such as Timber
standard for supply chain management – one which is only set to go higher.
Chain allow importers to have a complete set of shipment data, which More at www.iov42.com
in turn equips them to navigate uncertainties around interpreting EUTR, Timber Construction Magazine
Summer 2022
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