Globant and CMPC Deploy AI‑Powered Supply‑Chain Traceability Platform to Meet EU Deforestation Rules – a joint effort that leverages SAP Clean Core and SAP Business Technology Platform (SAP BTP) to slash manual compliance work from days to minutes, delivering near‑real‑time reporting for the European Union’s Deforestation Regulation (EUDR).
Globant, the digitally native consultancy known for turning AI research into enterprise‑grade solutions, announced the rollout of an AI‑driven traceability and compliance system for CMPC, a multinational pulp, paper and packaging producer operating in more than 45 countries. The platform extracts data from invoices, shipping manifests and sensor feeds, then applies machine‑learning models to validate each batch against the EU’s strict anti‑deforestation criteria.
The solution sits on SAP Clean Core principles, meaning the core ERP remains untouched while extensions run on SAP BTP. By automating document ingestion and rule‑based verification, the system reduces the average validation time from up to 12 days to roughly three minutes—a 99.9 % speed improvement that translates into real‑time regulatory reporting.
“Regulatory compliance is no longer a back‑office function — it is a strategic capability,” said Santiago Noziglia, CEO of Globant’s Consumer Goods & Manufacturing AI Studio. “By integrating SAP Clean Core with AI‑driven automation, we helped CMPC turn regulatory pressure into operational advantage.”
How the Technology Works
- Data Capture – Optical character recognition (OCR) and natural‑language processing (NLP) parse unstructured PDFs, emails and IoT sensor logs.
- AI Validation – Custom machine‑learning classifiers compare product origin data against satellite‑derived deforestation maps and EU‑approved timber‑tracking registries.
- Workflow Automation – SAP BTP orchestrates approvals, flags anomalies and pushes compliant records into CMPC’s ERP for instant visibility.
- Regulatory Reporting – Pre‑built dashboards generate the required EUDR disclosures, ready for submission to EU authorities.
The architecture is deliberately modular: the AI models run on SAP’s cloud‑native runtime, while the core ERP remains insulated from frequent updates, preserving the “clean core” integrity that SAP and its ecosystem champion.
Why It Matters
The EU’s Deforestation Regulation, effective from the start of 2024, imposes mandatory traceability for commodities linked to forest loss. Non‑compliance can trigger fines up to 4 % of global turnover, according to a recent European Commission briefing. For a global supplier like CMPC, the cost of manual verification—both in labor and risk exposure—has been a strategic bottleneck.
By automating the end‑to‑end verification loop, CMPC can now guarantee that every pallet shipped to Europe is backed by verifiable, deforestation‑free provenance. The speed gain also enables the company to respond to market demand faster, a competitive edge in the increasingly sustainability‑focused packaging sector.
Industry Context and Competitive Landscape
Globant’s approach mirrors a broader shift toward AI‑augmented compliance platforms. Competitors such as Microsoft’s Azure Purview and Amazon Web Services’ (AWS) DataBrew offer data‑cataloguing and transformation services, but they lack the tightly integrated, industry‑specific rule sets that SAP BTP provides out of the box.
Furthermore, while pure‑play AI vendors like Palantir and C3.ai deliver powerful analytics, their solutions often require extensive custom integration with legacy ERP systems. Globant’s “clean core” methodology reduces integration risk, a factor Gartner notes as a primary barrier to AI adoption in supply‑chain functions—71 % of executives cite integration complexity as the top obstacle (Gartner, 2023).
Implications for Enterprise Marketing Teams
Marketing departments can now leverage the compliance data as a tangible proof point in sustainability messaging. Real‑time audit trails enable brands to issue verifiable “deforestation‑free” claims on product packaging, digital ads and B2B sales decks. According to a McKinsey survey, 68 % of B2C consumers say they would switch to a brand that can substantiate its environmental claims, underscoring the commercial upside of transparent compliance.
Moreover, the platform’s analytics layer surfaces trend data that marketers can translate into storytelling—highlighting, for example, the percentage of raw material sourced from certified forests over the past quarter. Such data‑driven narratives strengthen brand equity and can be repurposed across social media, investor relations and ESG reporting. Marketing teams gain a new lever to differentiate in a crowded marketplace.
Market Landscape
The supply‑chain compliance market is projected to reach $12 billion by 2028, driven by tightening ESG regulations worldwide. IDC forecasts that AI‑enabled automation will cut compliance‑related operational costs by up to 30 % for large manufacturers. SAP’s ecosystem, bolstered by partners like Globant, is positioning itself as the de‑facto platform for regulated industries, competing directly with Microsoft’s Sustainability Manager and AWS’s Compliance Center.
For enterprises, the key decision factor is the balance between integration effort and regulatory coverage. Solutions built on a clean core—where the ERP remains untouched—offer faster time‑to‑value, a critical advantage in markets where regulatory deadlines are non‑negotiable.
Top Insights
- Speed to compliance: AI automation reduces traceability verification from 12 days to ~3 minutes, delivering a 99.9 % processing acceleration.
- Clean core advantage: Leveraging SAP BTP preserves ERP stability while adding AI capabilities, lowering integration risk versus pure‑play AI platforms.
- Market pressure: EU’s Deforestation Regulation threatens up to 4 % of global turnover in fines, making rapid compliance a financial imperative.
- Marketing leverage: Real‑time provenance data enables brands to substantiate sustainability claims, influencing 68 % of consumers who prioritize eco‑friendly products.
- Industry growth: AI‑driven compliance tools are set to capture a $12 billion market by 2028, with IDC estimating up to 30 % cost reductions for adopters.
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