We attended inriver's PIMpoint, and in this blog, Jonas Prosell shares what this regulation will mean for you and how an expanded and sustainable service commitment can create profitability
Read more about our digital services hereIn this blog post, we reflect on the benefits of preparing for the new regulation expected in a couple of years. We also discuss how PIM (Product Information Management Systems) and other technologies can help create profitable solutions that encompass the entire value chain, including reparability and other important characteristics for circular models.
The EU's digital product passport should not be seen in a negative light. Sustainability is already high on the agenda for most companies. We see that EU's digital product passport promotes and opens opportunities for profitable and sustainable consumption and production. The central importance of product information for sustainability was actively discussed during this year's PIM Point, hosted by inriver. The emphasis was set from the opening speech and remained the guiding and inspiring theme throughout the event that took place at Slagthuset in Malmö on May 9th.
Business-to-business (B2B) digital trade has evolved to encompass higher values and more complex products, which means that professional buyers now have higher demands for detailed product descriptions and specific criteria to make critical business decisions. It is essential for customers to find the right product as erroneous purchases can lead to serious consequences. To support the purchasing process, we need to build a model for product information that provides support throughout the buyer's journey. This includes not only the customer's decision-making process but also support, service, and guidance in the crucial aftermarket.
Customers' need to assess the sustainability of a product, in combination with the new EU regulation, puts increased pressure on companies to provide detailed and traceable product information that discloses the environmental impact of the products and their components. Product information becomes an even more crucial and critical resource to meet these requirements.
In various B2B industries, machines, tools, and equipment are utilized for extended periods. By creating an efficient and user-friendly model and process to relate articles to each other, it becomes easier to find the right spare parts and related products. This contributes to improved conditions for streamlining usage and extending the lifespan of products.
A strong trend we see among our industrial customers is that this, in turn, facilitates the launch of service offerings and new types of commitments and pricing models. This is called servitization, where the company shifts from solely selling products to selling a complete service commitment.
In addition to efficient product information management, industrial companies often develop solutions that involve a combination of technologies, such as using sensors connected to machinery and IoT (Internet of Things) technology to transmit data for analysis. By utilizing well-developed algorithms, they can set up service reminders or perform proactive maintenance to extend the lifespan of products and reduce unnecessary waste or part replacements. Here, we see significant opportunities to create sustainable and profitable solutions.
Furthermore, consumers and companies that use these products often face time constraints, which hinder them from conducting their own research to make environmentally conscious choices. By providing information on product sustainability and reparability, awareness of product sustainability can increase. It is likely that companies that succeed in clarifying environmental information also have the potential to positively influence demand. By facilitating wise purchasing decisions for customers, we can create leverage that further promotes the development towards sustainable consumption.
Our conclusion is that the EU's digital product passport and customers' demands for sustainability increase the pressure on companies to provide detailed and traceable product information, creating opportunities for sustainable and profitable solutions. By utilizing PIM, IoT, efficient data structures, algorithms, and other technologies, we can achieve better and more efficient use of products, reduce waste, and promote sustainable consumption and production. So let's think about how we can take advantage of this development and contribute to creating a more sustainable future.
If you need to discuss the possibilities of developing more sustainable models for your products, please contact us at Tietoevry.