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Digital Product Passport: Opportunities and Business Benefits

May 15, 2024

If all you do is focus on being compliant with the upcoming digital product passport requirements, you’ll miss out on a great opportunity. We asked information management expert Ulrik Lilius to map out the business benefits that come with the new EU regulation.

If you’ve missed our previous blog posts on this topic, check out these links to learn more about what the digital product passport is and how businesses can prepare for the digital product passport. In this article, we’ll focus on the business benefits of the DPP regulation.

Easily Share Product Information

At this stage we don’t know exactly how data will be made available as part of the DPP framework. But we do know that detailed product information will need to be shared to resellers, customers and authorities in a structured and standardized way.

As such, the Digital Product Passport (DPP) will help the industry to develop easy and cost-efficient processes for sharing and obtaining information. Organizations will experience huge savings in time and resources.

Raise the Bar of Product Information

The DPP will help businesses to provide a high-quality minimum level of product information. This is an excellent opportunity to serve customers and end-consumers with improved buying experiences. When all product data is standardized, comparing and evaluating products will be much easier.

You’ll also be able to offer complete traceability throughout the production chain. For example, if a quality issue is detected you can identify exactly which production batch was affected. Because the DPP will likely include a batch number you can identify exactly which products you need to recall instead of dealing with a major communication effort and removing all products from the market.

Facilitate Procurement and Upsell

Responding to RFPs and dealing with thorough procurement processes will be much easier when all your product data is standardized and easily shareable. You may even feed your product data directly through to the customer’s procurement system. Forget about RFP questionnaires in Excel format or through emails!

Plus, when your product data is structured, you can ensure compatibility and connect relevant products in your data models. This way you can improve your service to customers by suggesting relevant add-ons and promote new accessories that are compatible with products they’ve previously purchased. Good for your customers, great for your business.

Strengthen your Brand

Consumers want more transparency. In particular when it comes to the climate footprint of the products they buy. And this is not just what they say, they also show it through their buying decisions. In fact, according to a joint study by McKinsey & Company and NielsenIQ, “products making ESG-related claims averaged 28 percent cumulative growth over the past five-year period, versus 20 percent for products that made no such claims”. Gathering, storing and sharing detailed data about your products will help you strengthen your brand position in the minds of the customers and hence build a competitive advantage.

Boost Circularity

When all data about a product, its components and origin are available through the DPP it will be easier to determine if and how the product or a specific component can be reused to extend the lifetime of products and materials. For example, if a building is being renovated or reconstructed there may be material, or even parts of the construction, that can be reused for another building project. As such, the DPP will help drive circular business models and sustainability initiatives.

Do you want to explore what benefits the Digital Product Passport can bring to your business? Contact us and we’ll be happy to set up a meeting with our information management experts.