Currently, there is a gap in Fresh Fruit Bunches (FFB) traceability among smallholders until it reached the oil palm mill via dealers. ICT-based intervention at the FFB dealers to record their daily transactions is able to address these issues. The need for this system arises due to the current limitation on getting more accurate and systematic data on the FFB transactions among smallholders. This article presents the development of an information technology (IT) system known as Kebolehjejakan Informasi Pekebun Kecil Sawit (KIPS) phase 2 to address the current gap in collecting data on FFB transactions among smallholders by linking dealer fruit (DF) via technology. Other than that, a case study and survey methodology among 14 Sustainable Oil Palm Grower Cooperative (KPSM) in Peninsular Malaysia was carried out to assess the adoption, challenges and effectiveness of the system as well as the understanding of their current record-keeping practices. KIPS portal system was developed with three user modules of admin, dealer fruit and smallholder. KPSM found KIPS is generally easy to use. However, the limiting factors were the time, performance and productivity in using KIPS which might hinder their attitude and behavioural intention to use KIPS. Lack of time and resources emerges as the main problem in using the KIPS system. Overall, most of the KPSM were able to submit their report through KIPS within the stipulated period. The findings of this study can serve as a basic framework for the development of a traceability system for various related industries.