In the evolving landscape of sustainability and transparency, the Digital Product Passport (DPP) is a critical tool for brands to comply with the EU's new regulations and provide consumers with key insights into their products. But how do brands take raw data from their supply chains and convert it into a structured, regulatory-compliant DPP?
What Data Is Collected in the Supply Chain?
At its core, a DPP is a digital representation of a product’s sustainability journey, including its environmental and social impact. The data required to generate a DPP comes from various stages of a product’s lifecycle, from sourcing raw materials to manufacturing, shipping, and disposal. Here’s what the data usually includes:
Materials Sourcing: Information about where and how the raw materials (cotton, leather, etc.) are sourced. This includes details on sustainability practices, ethical sourcing, and environmental impact.
Manufacturing Process: Energy use, carbon footprint, water consumption, and waste generation at the factory level. These are critical indicators of the product’s environmental impact.
Transportation & Distribution: The carbon emissions and energy consumption associated with shipping the product across different stages of the supply chain.
End-of-Life: Information about how the product can be recycled, repaired, or reused at the end of its life cycle, including partnerships with recycling services.
Technologies Behind Data Collection
To gather this data efficiently, brands are increasingly turning to automation and technology:
IoT Sensors: Sensors installed in factories, transportation hubs, and other supply chain points track real-time data like energy use and emissions.
Blockchain for Transparency: Blockchain is becoming an important tool for ensuring transparency in supply chain data. This technology provides an immutable ledger that ensures data is reliable and traceable, enhancing trust between suppliers, brands, and consumers.
APIs and ERP Systems: Many companies rely on Enterprise Resource Planning (ERP) systems to gather internal data, which can then be integrated into the DPP using APIs. These systems manage everything from production schedules to supplier data.
Data Integration and Automation
Data collected from these various technologies is integrated into a centralized platform like Wedge, which automates much of the work. This automation is critical because:
It ensures data consistency and reduces errors.
It speeds up the process of data collection and reporting, reducing manual input.
It allows for real-time data aggregation, so brands can quickly respond to sustainability challenges.
How is This Data Used for the DPP?
Once collected, the data is standardized and formatted to comply with regulatory requirements for the DPP. This includes ensuring that the data addresses key environmental metrics like:
Carbon Footprint
Water Usage
Waste Generation
Recyclability
The DPP is then generated in a format that consumers can access, often via a QR code on the product. This QR code gives buyers full transparency into the product’s environmental and social footprint, which in turn builds consumer trust.
Conclusion: Why Data Collection is Key to DPP Compliance
Converting supply chain data into a DPP is a complex, multi-step process that requires the integration of various technologies. However, with platforms like Wedge, brands can automate the process, ensuring accurate, timely data collection and compliance with the latest sustainability regulations. This not only helps brands meet regulatory requirements but also builds a more sustainable, transparent supply chain that resonates with modern consumers.
Frictionless data collection with Wedge!
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