Stories: Thought Leader

In the complex world of palm oil supply chains, traceability is a critical differentiator. It is also a challenge.

Here’s how Hero Sanjaya, Head of Supplier Compliance, and his team work to achieve and maintain full traceability for GAR’s supply chains.

Q: Why is traceability so important for GAR and our customers?

Hero: It’s extremely important because it is the first step towards achieving a sustainable supply chain. With traceability, we can identify the origins of the Fresh Fruit Bunches (FFB) all the way back to the plantation and along the way, we can know and understand our suppliers better. This then allows us to support them better on their sustainability journey.

Q: What are the biggest challenges in supplier compliance and traceability?

Hero: There are numerous challenges, but the core issue often boils down to supplier mindsets. For some, sustainability is still regarded as a nice-to-have thing if not a burden. It is our job to help them understand that traceability and sustainable practices are no longer optional – they’re essential for success in today’s competitive palm oil market. In fact, these practices are not just good for the environment, they’re good for business longevity.

Q: What strategies do you use to improve traceability in GAR’s supply chain?

Hero: In general, there are three principles that guide our work:
•   Continuous improvement: There is no such thing as a perfect traceability system. That’s why we’re always looking for new ways to improve and the latest technology to stay ahead. For instance, we’ve added Traceability to the Plantation (TTP) verification to our regular supplier visits so we meet the highest standards while working closely with our partners.

•   Fostering partnerships: We team up with leading organisations for projects like our flagship initiative Sawit Terampil to upskill our smallholders. By pooling our expertise, we build better practices and share knowledge for mutual growth.

•   Empowering through engagement: We stay connected with our suppliers by offering training and making site visits. By helping them learn to manage the system on their own, we all get better at keeping our supply chain transparent and efficient.

Q: Within GAR’s traceability journey, what aspect are you most proud of?

Hero: We believe working hand-in-hand with suppliers to get them on board will fulfill our traceability and sustainability goals. We offer them all the help they need to improve their practices. When we encounter significant compliance issues, suspension is the last resort we have to take. However, we don’t abandon suspended suppliers; in fact, we have a proven track record of helping them get back on track through targeted programmes. These success stories are what make me most proud at GAR. It shows we’re serious about both responsible sourcing and making a real difference in our supply chains.

Q: How do you handle cases where suppliers fail to meet traceability standards?

Q: How do you make sure that the data collected for traceability is accurate and reliable?

Hero: Collecting traceability information is a hefty task and often based on supplier declarations, making data verification the next challenge. Here, technology plays a crucial role.

For Traceability To the Mills (TTM), we use spatial verification to validate mill coordinates with satellite imagery.

For Traceability To the Plantation (TTP), the process is more complex. For certified supplier mills, we validate supplier claims using certification audits from public domains like RSPO and ISCC. For non-certified mills, we do site visits or online verifications. Additionally, we have developed our own sampling methodology and collaborate with buyers or customers during their annual audits. To meet EU regulations, we are developing a blockchain system to trace our product all the way back to the plantation.

Q: What role does technology (e.g. blockchain, satellite monitoring) play in achieving and maintaining traceability?

Hero: Indonesian palm oil farming involves a large number of small, independent growers, so it can be challenging to track the origin of FFBs. Technology helps us bridge this gap.

We teamed up with Koltiva, an Indonesian agri-tech company, to streamline the process of collecting and verifying traceability data. Their tech is helpful, but we also needed buy-in from all the suppliers involved. Koltiva facilitated this by conducting on-site surveys to the source – mills, agents, and smallholders.

Traceability is a stepping stone, not the final goal. Our ultimate objective is sustainable practices, particularly deforestation-free supply chain. Once we know the FFB source, our satellite monitoring from Satelligence keeps an eye on any possible deforestation within our supply chain.

Technology empowers us to connect with suppliers more effectively and efficiently. It also provides valuable insights into what they need to meet our sustainability standards. And more importantly, our own success with these tools builds trust with suppliers and encourages them to follow suit.

Q: How does GAR’s approach to traceability compare to industry standards/peers?

Hero: What sets GAR apart is our focus on being adaptable while staying accountable. Our traceability system gives us the flexibility to work with a wider range of suppliers. We leverage advanced technology and innovative practices, as well as TTP verification during regular visits to our suppliers, to make sure they follow the same standards as we do.

It’s important to note that the palm oil industry is working towards a universal traceability approach. The Palm Oil Collaboration Group (POCG) is currently developing a shared methodology for all industry players, including brands, traders, refiners, and mills. We have joined this process so that our approach aligns with future industry benchmarks.

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Learn how GAR is transforming our palm supply chain with advanced traceability measures. Explore our journey towards sustainable sourcing here.

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