What the Home Goods (Furniture/Furnishings and DIY) Industry Needs to Know About Supply Chain Mapping and Traceability

The home goods sector has accelerated adoption of end-to-end supply chain mapping and traceability in the past two years in response to increasing regulation of upstream supplier practices. The industry is beginning to achieve economies of scale in mapping, now that companies on both sides of the Atlantic are requiring transparency from suppliers. However, there are still important hurdles to overcome before companies in North America and the EU can comply with existing and coming laws. 

Below are some key challenges facing the home goods industry in the adoption of end-to-end supply chain due diligence and ways your business can tackle these today, based on your key products.

Wood with Respect to EUDR

Despite long being regulated and certified, wood remains one of the least-transparent raw materials. Fortunately, the existing EU Timber Regulation and the US Lacey Act mean that home goods companies already have established programs with their suppliers to ensure their products do not contain banned species. These supplier relationships serve as the backbone for mapping and tracing wood under the new EU Deforestation Regulation (EUDR) and Corporate Sustainability Due Diligence Directive (CSDDD).

While existing certification schemes do not provide the GPS mapping required by EUDR, they do facilitate the legality assessment, through online databases of certificates that can be cross-checked with mapped forests and operators.

Home Textiles with Respect to EUDR

Some existing textile certification schemes, notably Preferred Fibers and Materials (PFMs), provide for traceability to textile raw materials producers required by US forced labor and EU due diligence laws. However, certification does not always include GPS mapping of production sites, nor are transaction documents collected apart from those issued by the certifiers themselves. Add to that the fact that home goods often contain a number of non-certified (conventional) textiles, and it becomes clear that establishing mapping and transaction traceability programs with textile suppliers early is critical to ensure that they have capacity and the willingness to collaborate.

Construction Materials with Respect to EUDR

Recent high-profile detentions by US Customs have put the spotlight on construction materials and companies, including retailers. Many retailers are putting the responsibility of supply chain due diligence on manufacturers themselves. The construction industry looks favorably on home goods manufacturers that can provide enhanced transparency of their supply chains, especially in 2024 when the practice is not yet widespread. There is no better time for home goods companies to stand apart by providing mapping, traceability, and additional assurances that due diligence has been performed on the end-to-end supply chain.