With the EU introducing the new EUDR which will require all businesses in the EU, and selling into the EU to identify products which may cause deforestation, and subsequently provide evidence that their production has not caused deforestation prior to sale can Microsoft provide functionality which handles the obligations natively.

We would need a way of identifying products as being EUDR risk products

Enable batch level restrictions and tracking of due diligence references, from both the supplier and the onward selling company

Stop the sale of goods that have not been certified to the EU (or at least specified countries) until a reference has been obtained from the EU and applied to the specific batch of the product

Allow suppliers to complete due diligence questionnaires, and submit files/data against POs at product batch level

Allow access to the relevant tables for reporting and audit purposes on goods purchased & sold

Our current workaround for this regulation requires a new item model group which would be applied to EUDR products, this would allow us to specify a batch disposition code to stop the sale in the first instance. The use of batch dispositions though are not as clear at 'on-hand' level so we also need to setup a batch job to convert the stock status to a new status for this purpose. We would also need to create a custom field on the InventBatch to keep a record of our Due Diligence Reference, and use the supplier batch field as method of capturing the suppliers DDR. We are then having to create a batch job to monitor and update the stock status/batch disposition status of batches which have been given a DDR.

Whilst this will allow us to stay compliant, it is a clunky approach which I feel could be made considerably better with some small extensions from Microsoft to the current compliance functionality within the released products. I would be happy to discuss if required.

https://green-forum.ec.europa.eu/deforestation-regulation-implementation_en