PXM and regulatory compliance
How to meet the requirements of the EU Digital Product Passport and remain competitive
PXM and regulatory compliance: How to meet EU Digital Product Passport requirements and stay competitive
Introduction
Product Experience Management (PXM) is an approach and a set of tools that significantly supports the management of product information in the context of compliance with EU regulations, including the implementation of the Digital Product Passport (DPP) PXM enables the central management of product data and content, ensuring a consistent and attractive customer experience across all sales channels. It combines the functions of systems such as Product Information Management (PIM), Digital Asset Management (DAM) and Master Data Management (MDM), allowing data to be collected, enriched and distributed in a manner tailored to the context and requirements of the DPP By implementing PXM, companies can more easily meet the requirements of the Digital Product Passport and deliver up-to-date, compliant product content - which supports sustainability and increases customer trust.
The EU Digital Product Passport (DPP) is a key element of the European Union's new regulatory requirements under the European Green Deal and the ESPR regulation The DPP aims to ensure full compliance with EU regulations on product transparency. From 2026, almost every physical product sold in the EU will have to have a digital passport - an electronic record containing data on the origin, composition, environmental impact and sustainability characteristics of the product. This passport, based on a QR code, for example, provides access to complete information in accordance with the Digital Product Passport, covering the entire product life cycle - from raw materials to recycling. This tool is intended to prevent greenwashing and support the PXM strategy focused on supply chain transparency and a circular economy.
The topic of the Digital Product Passport (DPP) is becoming crucial for companies selling in the European Union, as compliance with EU regulations on the DPP will become a prerequisite for market presence The regulations were agreed in 2023 and the first obligations will come into force as early as 2026, gradually covering almost all industries by 2030. Companies - both those operating in the EU market and those outside the EU but exporting to Europe - must quickly prepare to meet the DPP requirements In this context, the implementation of a PXM strategy and PIM/DAM/MDM systems is not only a response to regulatory challenges, but also a tool for increasing the efficiency of product information management For management, product marketing, compliance and IT, it is also an opportunity to build a market advantage through the automation of product data compliant with the DPP, greater transparency and support for sustainable development.
EU Digital Product Passport requirements
The Digital Product Passport (DPP) specifies the set of information that every company planning to sell products in the EU must collect and make available in order to meet the requirements of the Digital Product Passport.
This data includes, among others:
- origin and identification of the product (place of production, manufacturer, raw material sources, identifier)
- Material composition (including information on hazardous substances and recycled materials)
- Environmental impact (CO₂ emissions, resource consumption)
- Documentation and compliance with EU standards
- Circular features (repairability, disassembly)
- Disposal and recycling data
This obligation will affect almost all industries – first, the sectors with a high environmental impact, and by 2030, all products on the EU market. Companies that do not comply with the DPP will lose the opportunity to sell legally in the EU. To prevent this, it is necessary to implement a PXM strategy and product information management systems such as PIM, DAM and MDM to centralize and automate product data in accordance with the DPP.
How PXM can help you meet the DP requirements
The implementation of digital product passports means that huge amounts of product data must be processed and made available to various stakeholders (consumers, regulators, business partners) in a standardized, easily accessible way. For many companies, this is a quantum leap compared to the previous way of managing product information, which is often scattered across different departments and systems (e.g. technical data in the ERP system, marketing data in Excel spreadsheets or in the CMS system, certificates in PDFs on the file server, etc.). Product Experience Management (PXM) provides tools that can make it much easier to meet DPP requirements by centralizing, structuring and automating product data management. Here's how specific PXM technologies can help your company achieve compliance
- PIM (Product Information Management) – Product Information Management is the foundation of PXM and a key tool in the context of DPP. PIM is a central repository for all product data, acting as a “single source of truth” for a product. All information – from technical specifications to logistics data and marketing descriptions – is stored in one place, eliminating the problem of scattered data and inconsistent versions. In the context of DPP, PIM allows you to define and store all required data fields of the digital passport (e.g. ingredients, environmental parameters, certificates) assigned to each SKU. Importantly, a good PIM system enables validation of data completeness - gaps in the required attributes are automatically detected and flagged to users. This allows the company to ensure that a full set of information required by regulations has been collected for each product; if something is missing (e.g. no recycled content entered), the system will indicate that it needs to be completed. PIM also ensures the quality and consistency of data – it enforces uniform formats (e.g. units of measurement, production date format), which is important for data standardization for passports In addition, a central PIM facilitates the updating of data on an ongoing basis - when the composition of a product changes or new regulations require additional data, the information can be updated in the system once, and these changes will be automatically propagated to all channels using this data. As experts emphasize, the key task when implementing a DPP is choosing the place where data will be collected – it is worth considering implementing a modern PIM system for managing product information, which will provide the appropriate organizational and technical background for digital passports.
- DAM (Digital Asset Management) plays a key role in meeting the requirements of DPP regarding documentation and visual materials. DPP is not only about numbers, but also about the obligation to provide operating instructions, certificates of conformity, safety data sheets and product photos. Thanks to the integration of DAM with PIM as part of the PXM strategy, companies can centrally manage all digital assets assigned to a product. The system allows files to be linked to a specific SKU, version control and availability - which guarantees that, for example, the current manual or environmental certificate is always available to the consumer or inspector. The Digital Product Passport containing complete data and documentation from the DAM guarantees compliance with EU regulations and convenient access to information - both for the end user and supply chain partners.
- MDM (Master Data Management) – Product data requirements often go beyond typical product data, e.g. to include information about raw material suppliers, supply chain data or the carbon footprint of the production process. Some of this information may come from various internal systems (ERP, purchasing and delivery systems, PLM for product life cycle management) or from external partners. MDM solutions enable the integration and synchronization of data from multiple sources, ensuring its consistency. In the context of PXM, MDM can link data from the financial system (e.g. country of origin of components or supplier batch number) with data in PIM, so that the passport contains a complete picture of the product from raw materials to the final product Thanks to MDM, if, for example, the supplier of a component changes to another supplier with a different environmental certificate, updating this information in one place (master data) will automatically be transferred to all related products and their passports.
- Integrations and data interfaces – PXM technology is characterized by openness to integrations (APIs, connectors). This can be crucial when implementing the EPD, as companies will need to communicate with the central EU EPD registry and make passport data available via scannable codes Modern PIM/PXM systems offer APIs and modules for the automatic distribution of product data to various channels. Previously used, for example, for syndicating descriptions to marketplaces or websites, they can now be used to feed the DPP register For example, after creating a product passport in PIM, the system can generate a QR code and include it in the product label design. When the code is scanned, the app/phone can retrieve information from the PIM system or the DPP database via API. It is important that good PXM tools ensure compliance with data exchange standards – many of them support, for example, JSON/CSV formats that comply with regulatory requirements or can integrate with GS1 systems, which will facilitate the standardization of information exchange within the DPP In other words, PXM can become the “data infrastructure” that connects a company's internal data world with the external DPP ecosystem in a seamless and automated way.
In practice, the use of PXM technology to meet PPD requirements is already beginning. Companies implementing advanced PIM systems are finding that these solutions simplify PPD compliance while increasing the transparency and traceability of product data throughout the supply chain. For example, a manufacturer of wood products decided to replace a limited, decentralized data management system with a modern PIM SaaS platform. As a result, they gained one integrated data source for all sales channels, which significantly simplified the adaptation of product information to the requirements of DPP (data is only entered once and then used multiple times) Furthermore, the integration of all data enabled automatic updates of information on the website and in catalogs after data changes in PIM, which eliminated manual, time-consuming corrections and reduced the risk of errors. The implementation of PIM has also improved cooperation between teams - the quality, sustainability, marketing and IT departments work on the same data set, with clearly defined responsibilities for its completion and verification, which has increased the organization's efficiency and preparedness for new regulatory requirements. It is worth noting that modern PXM platforms increasingly support the monitoring of environmental indicators (e.g. carbon footprint per product) and can generate reports for internal sustainability analysis. This means that investing in PXM not only helps meet the formal requirements of the DPP, but also provides the company with tools to better manage the environmental impact of the products offered.
In conclusion, PXM technologies – especially PIM systems integrated with DAM and MDM – are a natural support for the implementation of the EU Digital Product Passport. They enable all the necessary data to be collected in one place, its quality and completeness to be checked, and then this information to be easily distributed in the digital passport format In a world where regulatory compliance will require product data to be shared on an unprecedented scale, companies with an efficient PXM infrastructure will be one step ahead, meeting new obligations more efficiently and cheaply.
Business benefits of integrating PXM strategy with DPP requirements
Compliance with Digital Product Passport requirements does not have to be seen as just a costly regulatory obligation. In fact, a strategic approach that integrates DPP requirements into a broader Product Experience Management strategy can bring a number of tangible business benefits to a company. Using the implementation of DPP as a catalyst to improve product information management not only avoids penalties, but also improves internal processes, increases customer confidence and strengthens the competitive position in the European market. Below, we discuss the key benefits of linking PXM strategy with the implementation of DPP:
- Optimization of processes and operational efficiency: Implementing PXM in the context of DPP forces a close look at how product data is collected, verified and shared within the company. Organizing these processes (e.g. centralizing data in PIM, automating updates) leads to significant efficiency improvements. Employees spend less time searching for information in different places or manually retyping data into spreadsheets, and more time analyzing and using it. Company examples show that centralizing product data and automating publication (e.g., on e-commerce websites) reduces labor-intensive administrative tasks and shortens time-to-market for new products. What's more, PIM systems often allow for greater automation of product enrichment processes through business rules or integrations. This means that instead of manually entering the same information in multiple places, we do it once and the system replicates it where needed. All this translates into savings in resources (human and time), and thus reduction of operating costs associated with product information management.
- Improving data quality and reducing the risk of errors: Integrating the PXM strategy with DPP requires setting high standards for data quality – after all, this data will be publicly available and verified by regulators. Investing in mechanisms to control data quality (validations in PIM, acceptance workflows, internal audits) results in an overall increase in the reliability of product information in the company. Better data quality means fewer mistakes in descriptions, specifications or labels. This has a direct impact on reducing costly business errors, such as putting a product on the market with an incorrectly labeled ingredient or parameter, which could result in a batch recall. What's more, more accurate and comprehensive product data increases customer satisfaction, as they receive reliable descriptions and can make more informed choices. For example, a company that improved the completeness and transparency of product information thanks to PIM even saw a reduction in product returns of 30%, as customers were less likely to be disappointed with what they received (the product better matched the expectations based on the description). Fewer returns mean measurable savings (less logistical and administrative handling) and, in addition, environmental benefits, as fewer CO₂ emissions are generated by the transportation of returned products.
- Greater transparency and customer trust: One of the main objectives of the UCP is to provide consumers with access to reliable information about products, which is intended to strengthen their trust and ability to make informed decisions. A company that not only meets these requirements but also proactively communicates full transparency (e.g. by providing extensive passport data on the product page of its online shop) can gain an advantage in the eyes of consumers who are focused on ecological and ethical values. Providing customers with detailed information about the origin, materials or recyclability of a product builds the image of a responsible and reliable brand. Increased trust translates into loyalty - consumers are more likely to buy from a brand that “has nothing to hide”. As studies show, the CPP can become a tool for building a competitive advantage in the area of sustainability, which will increase the value of the brand and set it apart from the competition. In other words, meeting the requirements of the CPP is an opportunity for marketing and PR departments to show themselves as leaders in transparency, a trend that will only gain in importance in the coming years.
- Compliance as a competitive advantage: In the coming years, compliance with the PPG will become a prerequisite for competing in the EU market – non-compliant companies will simply not be able to sell their products in Europe. However, in the short term, before the regulations come into full force, being ready earlier can become an advantage. A company that has already implemented PXM and meets the requirements of the DPP can communicate to its partners and customers: “We are prepared, our products meet the upcoming standards”. This is a sign of professionalism and responsibility that can attract contractors looking for reliable suppliers. Especially large retail chains may prefer to work with suppliers prepared for the DPP to protect themselves from risk. In addition, companies integrated with the DPP can more easily enter new, demanding markets where customers expect detailed information (e.g. Scandinavia, Germany) – the digital passport will make it easier for them to meet local expectations regarding eco-labelling. It is also worth noting that being a pioneer in implementing the DPP can allow you to gather valuable experience and streamline processes earlier than your competitors, which will later translate into more efficient functioning under the full legal regime.
- Better cooperation within the supply chain and business ecosystem: PXM integrating data into DPP facilitates information sharing with B2B partners. Digital passports can be used not only by consumers, but also by suppliers, subcontractors or recyclers - any authorized entity can obtain the desired portion of product data. For example, a component manufacturer can receive feedback from the recipient on how their part performs in the final product (e.g. failure rates), and a recycling company can obtain data to facilitate material recovery. This transparency of the supply chain fosters more effective and resilient partner networks. Companies that manage product information in an organized manner (PXM) and are able to easily share this data (DPP) will be seen as valuable partners. In addition, participation in sustainability programs (e.g. “green supply chain” initiatives) will be easier when we have hard data from passports. This is another soft but real competitive advantage – it is easier to join innovative projects and industry alliances for a company that has organized data and can share it.
In conclusion, the integration of PXM and DPP brings a number of synergistic benefits. Improved processes and data quality increase efficiency and reduce costs, transparency and better data strengthen customer trust and reduce losses (e.g. from returns), and meeting regulatory requirements becomes the foundation on which to build the competitive advantage of a responsible and innovative brand. As an industry report notes, digital passports will enable brands to strengthen consumer trust and differentiate themselves in the field of sustainability, which can increase brand value and give a market advantage. Ultimately, investing in PXM not only minimizes compliance risks, but also maximizes business opportunities arising from the transition to greater transparency and responsibility.
Challenges and best practices of implementing PXM in the context of EU DPP
Although the benefits of combining PXM strategies and DPP requirements are significant, the implementation process brings with it considerable challenges. Organizations must prepare themselves technologically, procedurally and culturally in order to successfully go through the transformation. Below, we discuss the most common challenges encountered when implementing PXM systems to ensure compliance with DPP, as well as best practices to avoid or minimize these challenges.
1. Technological complexity and system integration: Implementing DPP may require the expansion of existing IT infrastructure – a database (register) is needed that can store detailed data about each product and make it available externally via QR code or API. For many companies, especially smaller ones, developing such infrastructure is a major undertaking. The best practice is to use ready-made PIM/PXM solutions available on the market instead of building everything from scratch. Modern PIM platforms in the SaaS model offer scalability, security and ready-made integrations, which reduces the technological entry barrier. It is also crucial to ensure smooth integration of the new system with existing ones - e.g. connecting PIM with ERP, PLM, e-commerce system and other data sources. To this end, it is worth focusing on solutions with an open architecture (API-first) and allocating time in the project to carefully plan the integration (taking into account data mapping, synchronization frequency, etc.). A pilot implementation on a limited number of products or in one department can help to detect integration problems early on and refine the architecture before going full scale.
2. Standardization and interoperability of data: The PPN is intended to be universal throughout the EU, which means that data standards must be adhered to. If a company operates in different countries or uses multiple standards (e.g. its own category codes, different units of measurement), this can lead to problems when aggregating data. The challenge is to achieve a common product description standard that is accepted by all systems. The best practice here is to follow recognized industry standards – for example, using GS1 standards (Global Trade Item Number and related attributes) for product identification and description, or incorporating recommendations from ISO standards on environmental footprint. It is worth following the European Commission's guidelines on data exchange formats for PPIs - adapting the PIM data model to these guidelines from the very beginning will facilitate the subsequent exchange of information with the central register. In practice, this may mean adding specific fields to the PIM system (e.g. compliant with the EU format), adopting specific vocabularies (e.g. list of materials by codes), or mapping your own categories to EU categories. Interoperability tests – e.g. checking whether our data export from PIM can be easily read and interpreted in another system – will help to ensure that we are moving in the right direction.
3. Data security and privacy: The product passport will be publicly available, but this does not mean that all company data can be disclosed without control. Some information (e.g. detailed material recipes) may be sensitive from a company secret perspective. There is also the issue of protecting systems from unauthorized access or data manipulation. Ensuring the security of PIM data is both a technical and procedural challenge. Best practices include implementing strictly defined access policies in the PIM/DAM system (who can edit what and who approves publication), encrypting sensitive information, and using authentication and authorization when sharing data externally (e.g. the DPP system can make certain data available to consumers anonymously, but full data sets only to authorized bodies via API with an access key). It is worthwhile involving the IT security and compliance department at the start of the project to assess which data can be made public and which data requires protection. Perhaps some business data will only be shared in the passport in an aggregated form or not at all (if not required by law). It is also crucial to update business continuity plans and backups - the passport becomes a critical element of the product, so the system managing it must be backed up and quickly restored in the event of a failure.
4. Collecting complete data from suppliers: The Product Data Protocol often requires data that the manufacturing company must obtain from its suppliers and subcontractors (e.g. chemical composition of materials, carbon footprint of components, supplier certificates). This can be a major organizational challenge – the need to standardize and exchange information within a complex global supply chain. Best practice is to involve suppliers in the process of preparing for SPP at an early stage. For example, you can prepare a list of required data for them and ask them to complete it in an agreed format, or provide them with access to your system (e.g. the Supplier Portal module linked to PIM, where the supplier enters data about their component). Some companies are considering making the obligation to provide information to the DPP a condition in new supplier contracts. Educating suppliers is important – explaining why this data is needed and how a lack of it can result in the product being excluded from the market. In global supply chains, it is worth checking whether suppliers have similar regulations in their regions - e.g. if a supplier from Asia will also have to comply with PPM when exporting to the EU, cooperation in this area is mutually beneficial.
5. Resistance to change and team commitment: Implementing PXM and new data collection processes also means organizational change. Teams that have previously worked in their own information silos must learn a new, integrated approach. There may be natural resistance: “Why do we need these additional fields in the system?” “Why do we have to enter so much data when we haven't needed it before?” Education and a change in work culture are essential here. The best practice is to run a training and communication project in parallel with the IT project. The goal should be clearly communicated: “We are implementing DPP because it is required by law and it secures the future of our sales, but it will also improve our work and put us ahead of the competition”. It is crucial to obtain sponsorship from the board of directors and support from management in order to prioritize activities related to DPP. Regular training in the use of the new PIM system, workshops on new procedures (e.g. the flow of information to the passport), and the creation of internal “Champions” (change leaders in departments) can help to overcome initial reluctance. It is worth showing concrete examples of success – e.g. that thanks to the new approach, it was possible to introduce a product faster or avoid a problem with missing data. Gradually, as teams see that the new tools make their daily work easier (and not just generate additional responsibilities), acceptance increases. As practitioners point out, team awareness of the goals and benefits of DPP is key to effective compliance management - people need to understand why they are doing something, not just what they are supposed to do.
6. A phased approach and iterative optimization: Trying to address all aspects of the DPP for the entire product range at once can be overwhelming. The best practice is to take an iterative approach – dividing the implementation into stages. For example: first, focus on products from the categories that will be covered by passports first (e.g. electronics, if the company produces them). For them, build a data model, collect information, test the generation of passports. Then expand to other product groups. This approach allows you to draw conclusions and improve processes gradually. We will avoid the typical “big bang” error, where we would try to make changes at the last minute before the 2026/2027 deadline - a recipe for chaos and stumbling. The implementation plan should include time buffers for surprises (e.g. delays in data delivery by suppliers or the need to modify the system). It is also good practice to monitor regulatory changes on an ongoing basis – delegated acts for individual products can specify requirements, so you need to be ready to modify the scope of data or the way information is presented. A PIM system is by definition flexible (it is easy to add new fields), but internal processes must also be able to react quickly.
In summary, implementing PXM in the context of DPP requires a holistic approach, encompassing technologies, processes and people. The key to success is to start preparing in advance, recognize potential difficulties and apply proven practices: from choosing the right IT tools, through standardizing and securing data, to educating the team and working closely with partners. Companies that proactively address these challenges are more likely to navigate the transformation without major disruptions, while those that procrastinate may face a compliance crisis and a rush to catch up.
Summary
The Digital Product Passport (DPP) in the European Union introduces new standards of transparency and responsibility for manufacturers and distributors. For companies, this means the necessity to collect and share a wide range of data about their products – from origin and composition, to environmental impact, to disposal instructions. Implementing these requirements in practice may seem complicated, but the Product Experience Management (PXM) approach offers an effective solution. Centralizing and structuring product information in PIM/DAM/MDM systems enables efficient fulfillment of DPP obligations while maintaining control over data quality and operational efficiency.
With the PXM strategy, companies can simultaneously ensure compliance and improve their own business. As the examples show, organizing data in terms of DPP translates into better cooperation within the organization, fewer errors and higher quality of product content. This, in turn, leads to measurable benefits – higher customer satisfaction, fewer returns, and ultimately a strengthened competitive advantage. In an era of increasing consumer awareness, companies that meet strict transparency requirements build a reputation for trustworthiness and social responsibility, which can directly translate into financial results. On the other hand, ignoring the PPIs is not an option – non-compliance can lead to exclusion from the EU market and serious legal consequences.
For companies preparing to implement PPIs using PXM, there are several practical tips. First, start with an audit of product data – identify what information you already have, what is missing, and where to get it from. Second, invest in the right tools – a modern PIM system with DAM integration is almost a necessity to handle the volume of data and ensure its quality. Thirdly, involve all stakeholders – from purchasing (contact with suppliers) to R&D (technical data) to marketing (content for customers) and IT (integrations) – PPD is a cross-cutting topic and requires multidisciplinary cooperation. Fourth, train and educate – make sure your team understands the importance of digital passports and is familiar with the new work procedures. Finally, stay up to date – follow EU announcements, industry webinars and documentation (e.g. DPP technical guidelines) as regulations will evolve.
The EU Digital Product Passport is not only an obligation but also an opportunity for the digital transformation of product management. Companies that skilfully combine the implementation of the DPP with a PXM strategy will enter a new business era with better data, more efficient processes and a stronger position in the demanding European market. In short, compliance and competitiveness can go hand in hand if approached strategically and with foresight. Digital product passports are set to be a catalyst for change towards a more sustainable and transparent economy, and it is worth making them part of your advantage today, rather than just a box to check. In this way, we will treat the coming years not as a regulatory burden, but as an opportunity to improve the product experience and strengthen the company in the market of the future.