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Interview with Stephan Läderach – Business Consultant for Data Management

This is still underestimated by many in Switzerland in particular, as it is initially “merely” an EU requirement: The Digital Product Passport (DPP) is coming – and will be mandatory for the first product groups from January 2027. The aim is to make all information relevant to a product quickly and easily available to all parties involved: from the product’s origin and manufacturing conditions to the individual components it contains, repair options and information on proper disposal. In order to make this complex topic tangible and, above all, to be able to better assess your own situation, our data management expert Stephan Läderach provides a compact all-round overview with specific recommendations for action and an exciting change of perspective in this interview. The information is aimed in particular at companies in Switzerland, for whom the Digital Product Passport will also have a major impact.

Stephan, within the aclevion team you are the expert for the Digital Product Passport – so let me ask you directly: Why is it so important to deal with this topic? After all, this is an EU-specific measure. Is there any need for action at all?

In any case! After all, the Digital Product Passport ultimately affects all companies that sell in any way to customers in EU countries. It’s not just about end products, but about all products within the supply chain, because the relevant information for the DPP has to be passed on here. And even if I operate my business exclusively within our national borders, a constructive discussion is important. After all, there is a high probability that Switzerland will follow suit with regulations – which is probably even the easiest for everyone involved, because uniform procedures will then also exist across national borders. Hence the clear recommendation: all companies in industry and commerce really should address the issue in order to be prepared accordingly.

The Digital Product Passport affects all companies that sell in any way to customers in EU countries. All companies in industry and commerce really should address the issue in order to be prepared accordingly.

Stephan LäderachSenior Business Consultant

2027 – that’s a timeframe in which a lot can still change. Shouldn’t we wait and see how things develop first?

It is definitely the case that not all the details are known yet – for example, what information exactly needs to be included in the DPP for each product group. And of course we don’t know whether there will be one or two special features that we can’t foresee at the moment. But the main features are known and instead of remaining in a waiting position or even suppression and then possibly panicking shortly before the deadline because time is pressing, the smartest approach is to proactively deal with the Digital Product Passport. Especially as this is ultimately about the exchange of data and therefore about the well-known topic of digitalization. Either the basic prerequisites are already in place – as is the case with almost all of our customers, who already have extensive, granular product information available via a corresponding PIM solution. In this case, the next steps with regard to the DPP are relatively easy to plan and implement. Or, for whatever reason, a company has not yet reached this point in the digitization process, in which case it makes sense to bring its own processes and data up to date anyway. Not just for the digital product passport, but to remain competitive and meet the increasing demands of the market in the long term.

Why do we need the Digital Product Passport at all?

The DPP has its origins in the EU’s Ecodesign for Sustainable Products Regulation (ESPR) – as an important contribution to a functioning circular economy, which is becoming increasingly important in Europe. Not only on the legislative side, but also among consumers: ecological aspects can have an impact on purchasing decisions and the need for information on repair or proper disposal or recycling is increasing. With the Digital Product Passport, companies will in future have the opportunity to present such information and thus the environmental footprint of a product in a transparent manner – for example through statements on CO2 emissions, resource efficiency and recyclability. We should not see this as a “burden”, but as an opportunity to present our products to the end customer in an even more far-reaching way. Especially as there are exciting opportunities beyond sustainability aspects that have a long-term impact on customer loyalty and sales figures – if we know how to use them.

I assume that the view of products will change massively in the long term. The Digital Product Passport provides us with an additional communication channel that we can use in many different ways. Once initiated, the possibilities are almost endless.

An interesting idea that many companies probably haven’t even considered yet. To what extent does the Digital Product Passport also offer business-related opportunities?

Well, let’s look at the DPP independently of regulations and think about why we should make a conscious decision to introduce it. Keyword marketing: Suddenly we have an additional communication channel at our disposal that we can use in many different ways. The DPP contains information on numerous product components that can be linked to suitable service offers. For example, with regard to repair and maintenance: the stored information can be used to view the condition of a product and then integrate maintenance services that are precisely tailored to the actual use and usage history of a product. The same applies to upgrades and the reconditioning of products: Manufacturers can use the DPP to gather information about a product’s components and condition to offer more cost-effective upgrades or refurbishment, benefiting customers and companies alike. In addition, personalized offers for accessories, software updates or services can be integrated that are specifically tailored to the customer’s usage history and preferences.

In general, the extended product information leads to a better customer experience and therefore to greater brand identity and customer loyalty: Via the Digital Product Passport, customers can access detailed information that goes beyond the classic label – for example with explanations of product features, application tips or advice on energy-efficient use. In addition, there are exclusive offers and more; ultimately, this channel allows continuous interaction with the customer.

Once initiated, the possibilities are almost endless. I assume that the view of products will change massively in the long term. It makes sense in every respect to think about this development as early as possible and make the appropriate preparations.

Okay, necessity, sense and opportunities have become clear. How can the whole thing be implemented technically?

First of all, of course, a solid database is important: in other words, having comprehensive product data in good quality and in all languages relevant to the company – in digital form and in such a way that this data can be viewed, prepared and further processed without major effort. Suitable software solutions – above all PIM systems – help companies to achieve this goal. Modern PIM solutions have the advantage that they also provide the necessary interfaces for automated data exchange. This provides a good infrastructure for all other processes relating to the digital product passport.

It is also important that each product is given a unique digital identity, for example through a GTIN, which is stored in the product passport. This product identifier enables the product to be linked to its data. So that the consumer can then access the DPP, a so-called data carrier is attached to the product. This can be a QR code, but there are also other solutions. A so-called resolver is called up via the data carrier, which in turn establishes the connection to the DPP of the corresponding product.

To get to the point once again: Sophisticated concepts already exist to make the Digital Product Passport a reality. Ultimately, companies now need to prepare their own data accordingly and determine which form of data carrier is appropriate for their own products and which resolver should be used.

To what extent can you support companies in their preparations? And why do you see the PIM solution as the linchpin on the software side – and not the ERP system, for example?

First of all, of course, we provide support with our core services: consulting and implementation of system solutions for managing product data. We are particularly well positioned in the area of PIM systems and can support the next sensible steps in line with a company’s development status in this area – whether it is the initial introduction of PIM software, the replacement of an existing system or the optimization of the existing data model with a view to the requirements of the DPP.

As far as the superiority of PIM solutions as the basis for the Digital Product Passport is concerned, they are simply ideally suited to the requirements of the DPP because they are built precisely for this purpose. In other words, bringing together a wide variety of product information and exchanging it via appropriate interfaces. ERP systems, on the other hand, are primarily designed for internal processes from day-to-day business. Where I also have to think about it: Do I even want such far-reaching connections in connection with sometimes very sensitive data?

In addition, PIM manufacturers are already very actively involved in the debate with the DPP. They are working flat out to make it as easy as possible for customers.

Let’s say I would now like to tackle the topic: What are my first concrete steps?

As already mentioned, a solid database is important. Therefore, the first step is to create the prerequisites for managing your product data centrally – for example via a PIM system. The next step is to check this data for “suitability” for the DPP. Pay particular attention to information relating to:

  • Identity and origin of the product
  • Composition and properties
  • Environmental impact
  • Repairability and recyclability

And if you are already ready: Make sure that your products have a product identifier and a data carrier so that you are well prepared and can wait for further details on the DPP with peace of mind. “It’s all very simple” would certainly be too much of a promise. But all these requirements can be implemented and your proactive approach will pay off in the long term. After all, it is a sensible investment in the future viability of your company.

Of course, you are welcome to contact us so that we can support you in all matters relating to your product data. After all, this is precisely where our strengths lie. Our customers and selected contacts also have the opportunity to take part in the aclevion Exchange in Zurich on February 6, 2025. The DPP will play a central role there – including a corresponding presentation by Dr. Uwe Rüdel from GS1 Switzerland – and you can also exchange ideas with managers from other companies. Please contact me if you are interested in attending.