# Track timber supply chains using chain-of-custody records

> The organisation Preferred by Nature launched a pilot project using blockchain technology to verify timber supply chains and strengthen chain-of-custody documentation. The platform is designed to make traceability records tamper-proof and facilitate compliance with forestry due diligence requirements. Participating timber traders and processors can thus demonstrate the lawful origin of their wood products transparently.

**Sector:** Primary sector · **Industry:** Forestry · **Organisation:** Preferred by Nature · **Maturity level:** Pilot

Canonical URL: https://www.sapientblock.com/en/use-cases/preferred-by-nature-holzlieferketten-chain-custody-nachverfolgen

## Documentation status

- **Project status:** Pilot
- **Evidence:** Evidence medium
- **Editorial review:** pending

## Description

Preferred by Nature conducted a blockchain pilot project to secure international timber trade through immutable chain-of-custody data. In global timber supply chains, reliable traceability has often been endangered by incomplete or forged paper documents. The blockchain solution enables all involved actors to transparently view and securely verify origin and transport data.

The non-profit organisation Preferred by Nature tested a blockchain-supported platform for tracing timber products in 2021 together with a timber trading company. The pilot project's goal was to significantly strengthen the integrity of chain-of-custody certification compared to traditional methods. Through decentralized logging, every handover point in the supply chain is recorded tamper-proof and promptly. This facilitates importers and traders in demonstrating due diligence according to international legal requirements. Although no detailed technical specifications or quantified metrics were published in the initial announcement, the project demonstrates the significant potential of distributed ledgers for the forestry sector.

## Benefits

- Faster verification of chain-of-custody certificates
- Reduced reputational and sanction risks in timber trade
- Higher credibility of certified timber products
- Increased tamper resistance of origin proofs
- Complete transparency along complex supply chains
- More efficient fulfilment of legal due diligence obligations
- Relief from manual document verification
- Structured and uniform data collection

## Challenges

- Effort required to connect existing inventory management systems
- Ensuring correct assignment of physical timber batches to digital data records
- Willingness of all supply chain actors to participate in the system
- Need for training to operate new interfaces

## Technology foundation

Distributed ledger technology for tamper-proof logging of chain-of-custody events and accompanying documents along the timber supply chain. The cryptographic linking prevents any subsequent alteration of proof of origin.

## Sources

- [How blockchain is placing one timber trader ahead of the curve](https://www.preferredbynature.org/news/how-blockchain-placing-one-timber-trader-ahead-curve)