Finding it hard to trace materials in your supply chain? Try the ‘mass balance’ method

Supply chains are undergoing a mass transformation, as regulatory bodies and organizations realize the pressing need for sustainable global value chains. Stakeholders demand the transformation, from investors to consumers to nation-states, and organizations are currently seeking solutions.

One solution is the mass balance accounting method. Mass balance accounting can be defined as:

A system for administratively monitoring the inputs and outputs of certified material/product throughout the supply chain. It allows for mixing of these materials/products with non-certified material at any stage in the supply chain, provided that the outputs of certified material/product do not exceed the inputs of certified material/products.

Mass balance accounting is one of several well-known chain of custody approaches, designed to trace the flow of materials through a complex value chain. It is used in several established, sustainable and responsible sourcing programs, such as the Forest Stewardship Council and the Better Cotton Initiative. The method can be essentially applied to any industry.

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