The European Union will soon require certain products sold in the EU market to have a digital product passport.
A digital product passport (DPP) is a digital record of a unique product’s complete life cycle, storing key traceability data about the product. This data aims to support the circular economy, decarbonization, and sustainability.
Digital product passport in practice
Putting DPPs into practice requires a technical solution to collect all data about manufactured and distributed products. Digital traceability technology is key to deploying DPPs at an enterprise level. All physical components and materials have unique digital identities (UIDs). Any time something happens to a product during its supply chain journey, a DPP collects data associated with the UID.
Internally, branded goods companies have long wanted more granular traceability, and technology has matured enough to enable this granularity. The direction is clear: full traceability for a detailed understanding of the value chain is a must-have. As such, companies can start (and have started, in many cases) to prepare for what is coming, while getting a return on their investment along the way.
Added benefits of traceability
Critical to making the Digital Product Passport concept work is the need to establish more centralized data repositories to consolidate all the traceability data that will be required to report to the EU. Companies also gain additional business benefits from traceability, which is why many companies are starting today.
Download this white paper to learn more about the added benefits of traceability, and why companies should start preparing today to meet the upcoming regulations with your own DPP checklist.