CBG commercial guide
CBG Feedstock Procurement and Supplier Due-Diligence Guide
Bankable procurement is more than an annual supply letter. It connects verified sources to monthly quantity, quality, delivered cost, logistics capacity and plant acceptance. Start with evidence and pilots, contract the operating details, then manage suppliers against actual accepted supply and plant outcomes.
6 gates
Source, pilot, quality, logistics, contract and performance before scale.
Best fit
CBG developers and operating plants qualifying aggregators, mills, dairies, farmer groups and logistics partners.
Watch closely
Brokered volume without source rights, duplicated supplier claims, vague quality language and contracts that ignore seasonality or rejection.
Ask the supplier
Can the supplier prove source rights, prior deliveries, monthly capacity, quality controls and transport resources?
Qualify the source behind the supplier
Supplier registration should establish where material comes from and whether the seller can legally and operationally deliver it. This reduces double-counting and last-minute substitution.
- Verify entity, tax and bank details, operating locations and authorized representatives.
- Review farmer, mill, dairy or aggregator relationships and disclose existing commitments.
- Map source clusters and compare claimed volume with realistic recoverable supply.
Use pilots as a commercial gate
A pilot should exercise the full chain: collection, loading, transport, weighment, sampling, unloading, preparation and plant use. It creates evidence for price, capacity and contract terms.
- Run the pilot in representative seasonal conditions and use normal equipment.
- Reconcile quoted, loaded, delivered, accepted and consumed quantities.
- Record exceptions and corrective actions before approving scale.
Contract the operating reality
The commercial agreement should translate the approved supply model into measurable obligations. Annual quantity alone does not protect daily plant operation.
- Attach monthly schedules, quality methods, delivery windows, documentation and acceptance rules.
- Define change control for source, feedstock, format, route or subcontractor.
- Set performance reviews, contingency obligations and fair dispute resolution.
Evidence before commitment
Decision and proof matrix
Convert each commercial claim into evidence that procurement, operations and finance can review together.
| Decision factor | Operating guidance | Minimum proof |
|---|---|---|
| Source rights | Verify access to the material and disclose commitments. | Agreements, source roster and field/mill confirmation. |
| Capacity | Approve monthly capacity after a representative pilot. | Pilot dispatches and resource plan. |
| Quality | Attach measurable specification and sampling SOP. | Signed schedule and receiving records. |
| Performance | Score accepted quantity, quality, timeliness and evidence. | Monthly supplier scorecard and corrective actions. |
| Resilience | Prevent single-source and seasonal dependency. | Qualified alternates and disruption playbook. |
Execution checklist
Before this feedstock enters the production plan
Assign an owner and evidence date to every item. A verbal supplier assurance should not close a readiness check.
- 1Complete entity, source-right and beneficial-owner due diligence.
- 2Check for duplicated volume across aggregators and buyers.
- 3Run an end-to-end seasonal pilot before final capacity approval.
- 4Attach monthly schedule, QC and logistics SLAs to the contract.
- 5Pay and score against accepted, evidenced supply.
- 6Review alternate sources and contingency readiness every quarter.
Sources and limits
These sources support sector context and planning references. Figures are indicative, not a supplier guarantee or plant design specification. Validate local supply, laboratory characteristics, process compatibility and applicable legal requirements with qualified professionals.
Continue the decision
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Turn this guide into a plant-specific sourcing plan.
Share plant capacity, location, preferred feedstocks and storage constraints with the URJA SETU procurement team.