The Digital Product Passport: How to prepare for the upcoming EU regulation
A digital CV for products - the Digital Product Passport (DPP) will soon apply to all products sold in the EU. This will have a significant impact on ensuring sustainability and transparency on the global market. We show you what you need to know about the upcoming EU regulation and how you can now take advantage of this opportunity to strengthen your sustainability commitment.
What is the Digital Product Passport?
Linking digital and ecological transformation: that is the idea behind the Digital Product Passport (DPP). The DPP therefore makes all relevant data on a product available digitally along the entire value chain.
The Digital Product Passport contains comprehensive product data as well as information on the use, disposal, reuse and repair of a product. The aim is to provide customers with the product information that is often still missing in order to ultimately make a sustainable purchasing decision. The provision of this information makes the Digital Product Passport a basis on which sustainable decisions can be made in the future.
The DPP is to be introduced for initial product groups as early as 2026 and then successively by 2030 for batteries (including car batteries), electronics, information technology, plastic articles and textiles. In other words, by 2030 at the latest, the DPP will be mandatory for all products* sold in the EU.
The DPP therefore offers customers considerable added value and will help to reduce resource consumption. For companies, however, the new requirement means a considerable effort that affects far more processes than simply providing the necessary information.
Challenges in preparing for the DPP
For producers
1. Which processes are affected by DPP measures?
In future, transparency must be ensured along the entire value chain and the life cycle of a product - before and long after the purchase of a product. Close cooperation and dialogue with all stakeholders are important for this.
In addition, the requirements of the DPP also affect the materials used and, to a large extent, the design of a product: all parts must be replaceable and recyclable in order to increase the lifespan of an item through repairs and to retain materials in the circular economy. Therefore, changes in production processes are also possible.
2. Technical challenges
There are also technical challenges associated with the implementation of the DPP. This is because the required information must be digitally documented and made available along the entire value chain - for example via websites and apps - and must also be traceable.
Integration of new IT systems: In order to create and manage the DPP, IT systems are needed that record the relevant product information and manage it differently for the various target groups - because public authorities require different information than end customers. If need be, a new IT system has to be implemented in the company's IT landscape.
More effort for SME: Small and medium-sized enterprises (SME) in particular are faced with special burdens due to the additional requirements: Often, they do not have the necessary IT systems yet, which in turn requires adjustments to technical standards or precautions to maintain a higher level of documentation.
3. Data security and compliance
In order to store all DPP information in a secure location and make it available to supervisory authorities at all times, a secure, possibly cloud-based database solution must be found.
A robust system must be established that guarantees access by the supervisory authorities. This includes, among other things, compliance with certain regulations regarding data security and data protection, and flexibility in the selection of data for different target groups. Some must be completed by other stakeholders via an interface, e.g. when the product has been repaired and parts have been replaced.
For retailers
1. Providing product information
Digital platforms: Provide DPP information on digital platforms, such as websites and apps. The information must be easy to find and well structured to enable customers to make an informed purchase decision. This must be made available to them before purchase, for example on the product detail page (PDP).
Data carriers: QR codes or other digital interfaces in physical points of sale help customers to gain direct access to DPP information (e.g. by scanning with a mobile phone).
2. Traceability of all products
Introduction of track and trace systems: Advanced system solutions help you to cover the entire supply chain and make the origin and route of products traceable.
Clear labelling: Each product should be given a unique identifier (e.g. serial number, QR code), which contains all relevant information and documents the entire product life cycle - for example according to GDSN/G S1 standard, as already known from barcodes.
3. High adaptability and scalability
By using automation processes, efficient data integration systems, modern data management and cloud technologies and ensuring data quality and consistency, you guarantee that your systems, data models and processes are agile and scalable.
Implementation of modular and scalable IT systems that are easily customisable and expandable in order to react quickly to changes.
Central data platforms offer a standardised and consistent database. You can use the platforms to efficiently integrate and synchronise data from different systems and thus ensure a high level of data syndication.
Cloud platforms offer scalable and flexible infrastructure to efficiently process and store large amounts of data. This facilitates collaboration and access to up-to-date data from any location.
Implementation of systems that process and analyse data in real time in order to react immediately to changes and minimise delays through reliable syndication.
Building flexible data models that enable new requirements and changes to be integrated efficiently and remain agile and flexible. This is particularly relevant as requirements can change over the years.
Establishment of clear guidelines and procedures to ensure data quality, such as regular data cleansing and checks. This applies to all data provided, which must remain up-to-date long after purchase due to extended availability obligations.
The most important requirements are in the areas of IT, data management, compliance and personnel. They will be particularly challenging for SME, as they will not be able to respond to the requirements either technically or in terms of personnel and will therefore have to expect losses not only in terms of controls, but also in terms of their market position. Those who are prepared can prevent errors. Missing or inadequate data, non-compliant processes, resource overload and difficulties with the integration of product data can be prevented, which in turn gives companies a clear market advantage.
As the DPP will be mandatory in just a few years, companies should tackle the introduction of the necessary processes and systems at an early stage - especially as many partners and customers are already showing great interest in information about the sustainability of a product. Manufacturers and retailers implementing this already now even before the regulation becomes mandatory stand out from their competition. They gain trust and thus retain customers at an early stage.
The importance of support from external agencies
External partners bring in-depth technical knowledge and specific expertise that is crucial for the implementation of new technologies and systems. They help companies to find the right solutions that fit their individual needs.
They not only provide support in making the right decisions, but also, if desired, accompany the complete implementation into existing infrastructures. This reveals the potential for possible process improvements and automation and can also help with implementation.
There is no such thing as "operational blindness" with consultants: innovations and new trends are their daily bread and the longer they have experience, the better they know what companies not only want but also what they need. They advise on the selection of state-of-the-art software tools and platforms that are specially designed for managing and analysing large volumes of data. On-the-job training is also offered for new system implementations.
Our approach
As a full-service digital company, we support you in preparing for the Digital Product Passport. We not only help you creating your digital strategy but also support the development and implementation of solutions that meet your individual requirements and are in tune with today´s market requirements. Our approach includes:
- Health Check with a holistic approach including an audit of current infrastructure, processes and data models
- Assessment of technical maturity in preparation for the DPP requirements
- Individual solutions, like the development of a composable commerce strategy
- Business and technical consultants work together on process and system adjustments to maximise potential
In the DPP area, we place particular emphasis on flexibility and efficiency and the creation of a DPP-compliant architecture and data structure. If required, we also specialise in training staff with the technical innovations to ensure that all changes are implemented sustainably within the company. In the end, this not only boosts the company's growth but also its market position. Take the first steps towards DPP compliance by reviewing your current performance.
Conclusion
With the introduction of the Digital Product Passport (DPP) by the EU by 2030, transparency and sustainability are required along the entire value chain of a product. This offers opportunities for customer loyalty and differentiation in the market, but may require significant adjustments to IT systems, data management and supply chains. Particularly small and medium-sized companies may face major challenges, but can benefit from the involvement of external expertise and early implementation of processes and systems. Efficient data integration and automation are key to successfully implementing the DPP and fulfilling sustainability requirements.
* Foodstuffs, animal feed and medicinal products are not affected by the regulation.
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