It goes without saying, but new things are really scary in business and especially so when they are mandatory. And that’s okay. Fear is what keeps us alert and up to date on what’s new. In this case, EUDR.

If you’ve heard about it, but don’t have the slightest idea what it actually is, we have a 1-minute TLDR on just that – go check it out.

Now that we are all on the same page, it’s time to discuss the pitfalls you are inevitably going to face if you try to tackle EUDR with no preparation whatsoever. Or, God forbid, let AI chatbots do it for you – they really aren’t as good at it as we all wish they were.

Here are the top 5 mistakes we’ve seen companies make.

1. Relying on Outdated or Insufficient Data

• Mistake: Assuming that existing data is good enough.
• The Pitfall: The EUDR’s geolocation requirement is unprecedented. Vague country of origin data or even batch-level traceability will not cut it. You must have precise, plot-level coordinates (single points or polygons) for every production site. Many companies assume that their suppliers, especially smallholders, have this data readily available. The reality is often far from it, and a “just-in-time” request will lead to an operational bottleneck.
• How to Avoid It: Proactively work with all your suppliers—large or small—to capture and verify geolocation data. This is a multi-month process that requires clear communication and often a technological solution to streamline data collection.

2. Over-Reliance on Certifications

• Mistake: Believing that a third-party certification (like FSC or RSPO) makes you automatically compliant.
• The Pitfall: While certifications are valuable and can support your risk assessment, they do not replace due diligence. The EUDR has specific, non-negotiable requirements, such as the December 31, 2020, cut-off date and plot-level traceability, that many certifications do not fully cover. Relying solely on a certificate is a fast track to a rejected Due Diligence Statement (DDS).
• How to Avoid It: Use certifications as one piece of evidence, but always cross-reference the data provided by your suppliers with the EUDR’s specific requirements. Ensure you have the underlying geolocation data and proof of legality to back up any claims.

3. Underestimating the “Risk Assessment” Step

• Mistake: Thinking that collecting data is the same as conducting a risk assessment.
• The Pitfall: The EUDR requires a formal, documented risk assessment (Article 10) to determine if there is a “negligible risk” of non-compliance. This is not just a box to tick. You must analyze the data you’ve collected in the context of the country’s risk level, the prevalence of deforestation in the area, and the complexity of your supply chain. Simply having geolocation data is not enough if a satellite image shows recent deforestation on that very plot.
• How to Avoid It: Integrate your data collection with a robust risk assessment methodology. Use a system that let‘s you cross-reference geolocation data with satellite imagery and other risk indicators to provide real-time alerts.

4. Mismanaging Supply Chain Complexity

• Mistake: Assuming your supply chain is transparent.
• The Pitfall: Many companies have multi-tiered, complex supply chains with intermediaries and aggregators. The EUDR holds you responsible for every link in that chain. A single non-compliant plot of land can render an entire shipment non-compliant, especially with commodities that are often mixed, such as soy or coffee.
• How to Avoid It: Get an end-to-end view of your supply chain, from the final supplier back to the farm or forest plot. Establish clear contractual terms with all direct suppliers, requiring them to provide the necessary data and cooperation.

5. Siloed and Manual Processes

• Mistake: Attempting to manage EUDR compliance with spreadsheets and emails.
• The Pitfall: EUDR is a data-intensive, ongoing process. Managing it manually across different departments—procurement, sustainability, and legal—creates fragmentation, data errors, and a high risk of missed deadlines. A single audit request for a specific shipment could take weeks to fulfill, leaving you vulnerable to penalties.
• How to Avoid It: Implement a centralized solution. A platform that acts as a one-stop shop for data collection, risk assessment, and DDS generation can bridge the gap between teams and ensure all data is audit-ready and easily accessible.

At n’entropy, we’ve seen these mistakes firsthand and designed our software to prevent them.

Our platform provides the seamless integrated solution you need to go beyond simple compliance and build a truly resilient and sustainable supply chain. With n’entropy, you can avoid pitfalls, streamline your operations, and turn EUDR from a regulatory burden into a source of competitive advantage.