So Logistics Managers Don’t Have to Venture into the Forest for Traceability
In the paper and packaging industry, raw materials are often stored in large, two-meter bales. This presents significant challenges for intralogistics, not only because of the space requirements but also due to the legal obligation to ensure traceability of the materials used. With IdentPro’s Warehouse Execution System (WES) featuring laser tracking and real-time data capabilities, costly searches and empty runs in paper warehouses are eliminated. Supply chains, stock levels, and material compositions can be traced in the system at any time.
The global flow of goods operates at the intersection of economic processes and legal frameworks. Supply chains must be traceable. In Germany, for example, this is governed by the Supply Chain Due Diligence Act (LkSG), which ensures the binding implementation of the United Nations Guiding Principles on Business and Human Rights. Environmental protection plays a central role in these regulations. For the paper and packaging industry, whose primary raw material wood is naturally limited, sustainability has been a key concern long before it became a political priority.

Sustainable supply chains: Knowing from which forest the wood originates
The use of waste paper and eco-friendly production methods can significantly reduce the environmental impact of the resource-intensive paper manufacturing process. Most paper produced globally is made from a mix of primary fibers—derived from wood—and secondary fibers, such as recycled materials. The recycled fiber content in paper products can reach up to 100%. Recycled materials are especially common in the production of newsprint, corrugated cardboard, and tissue paper. In Europe, the overall proportion of recycled fibers in paper products is nearly 80% [source: https://www.bvse.de/papier-recycling-2/recyclingquote.html].
Certificates such as FSC® Recycled or the Blue Angel certify that only recycled paper has been used and that no harmful chemicals have been added. Starting December 30, 2025, the new EU Regulation on Deforestation-Free Products (EUDR) will also require that wood used in production must come exclusively from forests where no degradation has occurred. This regulation mandates proof that no wood has been sourced from rainforests or other endangered areas since 2020.
For wood processing companies, it remains uncertain how they can guarantee compliance without physically visiting forests and inspecting the trees themselves. To avoid such costly diversions, adherence to legal regulations depends heavily on the quality of data available within the warehouse.
Location, origin, composition: Neuralgic zones in the paper warehouse
Intralogistics in the paper and packaging industry faces several challenges related to the traceability of materials and the composition of raw material bales. The pressed raw materials for paper production are typically delivered in large bales, two meters in diameter, with highly variable compositions. Efficiently storing these bales in a way that saves space and reduces costs is just one critical point in the process. Traceability also plays a key role, requiring precise documentation of where the raw materials in each bale originate, whether they are certified, their composition, and where and in what quantities they are stored.
From a sustainability perspective, ensuring sufficient raw materials of the required quality are available is crucial to achieving the desired paper color and thickness. Using defective materials can have costly consequences for both production and the company’s sustainability goals. In some cases, entire bales must be discarded, or chemicals must be added to achieve the desired results during later production stages, negatively impacting both efficiency and environmental responsibility.
Incomplete and error-prone data quality in the analogue paper warehouse
Data quality in analog paper warehouses is often incomplete and error-prone. Many processes are still managed manually and recorded on paper printouts. Readily available IT tools, such as Excel, are also commonly used. Incoming raw materials are verified by employees using delivery notes, and details like product number, quantity, and supplier are entered into a stock ledger or spreadsheet. Typically, only supplier-provided information about the material’s origin is accessible.
The bales are labeled with handwritten tags that include basic details such as product number and quantity. However, the only traceability of the raw materials’ origin comes from the delivery note, supplemented by occasional material sampling. In practice, these methods not only fail to provide a complete record of stock composition but are also frequently inaccurate. In analog warehouses, trucks are weighed upon delivery and again when leaving the storage area to determine the respective quantities of bales. The bales are then stored in designated areas, with placement decisions relying on the experience of warehouse employees. Changes to stock levels are typically recorded manually in the inventory system at the end of the workday. The drawbacks of analog warehouse management in the paper and packaging industry are clear: inventory is prone to manual errors, and the exact location or status of the bales is often unclear. This leads to inefficient processes, extended search times, and delays. Missing withdrawals and double bookings are also common issues.
Beyond these operational inefficiencies, new legal requirements necessitate a shift in approach. Analog systems offer few opportunities to make data-driven decisions for optimizing processes, leaving companies ill-equipped to meet modern demands in compliance and efficiency.
Well packed in the paper warehouse: real-time data ensures sustainable processes
The technical achievements in the course of digitalization today enable more efficient warehousing in the paper and packaging industry: with the introduction of a WES, project managers can track at any time where the delivered raw materials come from, how much of it is stored and in what condition. It enables nothing less than a paradigm shift towards data-driven and transparent warehouse management in real time.
IdentPro’s Warehouse Execution System uses laser sensors to precisely localize and track the delivered bales. These IoT sensors are attached to the vehicles in the warehouse and scan the surroundings to an accuracy of ten centimetres. The recorded data is compared with a digital warehouse map to determine the exact position. The status is displayed in real time in the warehouse’s digital twin. This requires little more than a WLAN connection. The WES then processes the position data in real time and controls warehouse processes such as storage, picking or stock transfer increasingly automatically.
Real-time data in the paper warehouse: Linking the license plate with WES
The bales of paper delivered to the digitized paper warehouse are provided with an identification label (licence plate). This is a unique label that is assigned to the bale and contains all available data such as origin, weight, location and status within the supply chain. This data can be enriched as required, for example with supplier data, quantity or material composition. Based on defined rules, the WES then assigns the bale an ideal storage location and sends the storage instruction to the vehicle. The storage location is no longer necessarily in pre-defined areas, but rather where it is strategically calculated to be most convenient. The system then links the license plate with the storage location during storage and updates the digital twin in real time. From this point onwards, the bale can be tracked in the warehouse at any time. Every movement is documented in the WES by the license plate. These processes can also be carried out using autonomous forklift trucks.
Controlling traceable supply chains based on real-time data
Warehousing can be largely automated with laser localization in real time and decisions can be made optimally based on data. Human errors are reduced, the status of the bales can be tracked at any time, quick identification is possible and the seamless connection to ERP systems, such as SAP EWM, enables a continuous process chain via an interface. Real-time laser localization does not require any additional hardware in the warehouse, which contributes to increased cost efficiency and a fast return on investment of up to less than a year.
IdentPro’s vision is based on two principles: In terms of sustainable warehouse processes, IdentPro has set itself the goal of ending search and empty runs and optimizing the flow of goods. The WES, which links goods with data from their arrival in the warehouse to their departure, also contributes to the sustainability balance: energy consumption for unnecessary processes is reduced thanks to traceable supply chains and data-based decisions. Human and financial resources in the warehouse are conserved and storage capacities are optimally utilized. IdentPro thus also supports compliance with legal requirements: Warehouse employees in the paper and packaging industry know what their raw material consists of at the touch of a button, based on data and in real time. And, depending on the data quality and where necessary, they can trace it back to the forest.