Traceability and Chain of Custody models
Supply chain traceability allows companies to track products from source to consumer. It connects all steps of a supply chain with each other. Regarding traceability, there is a range of different Chain of Custody models. Each model represents a phase of the supply chain’s development towards sustainable sourcing. One of these models is called Book & Claim.
How does Book & Claim work?
In the Book & Claim model, physical products are mixed and sold as non-sustainable. The right to claim “sustainable sourcing” is traded on a separate online market in the form of sustainability credits. A central authority of the supply chain monitors the sustainability claims made by brands and retailers and ensures they match with the number of credits issued and traded.
Book & Claim and it's impact
So if a sustainability claim is not tied to a physical product, how can this lead to more sustainable production and practices? By buying credits via a marketplace, companies directly reward farmers and producers for their sustainable practices and products. This will stimulate production of these sustainable materials, supporting the farmers in their livelihoods and over time will increase the availability and quantities of sustainable products.
Use cases
ChainPoint is a software platform that supports all Chain of Custody models, including Book & Claim. We proved this with our work for the Round Table of Responsible Soy and THE Impact Incentives platform for multiple commodity trading.
Round Table for Responsible Soy
The Round Table on Responsible Soy is an international multi-stakeholder initiative that promotes the use and growth of responsible soy production through the commitment of the stakeholders of the soy value chain and through a global standard for responsible production.
How does the Impact Alliance work?
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Our platforms are capable to centrally register, monitor and control certified product volumes and credits throughout the supply chain.
Its integrated Certificate Trading Platform facilitates transactions between certified producers and retailers or brands and automatically prohibits the overselling of credits.
Do you want to know more about book & claim, traceability and how ChainPoint can support you in this? Contact us now for more information.
