inriver is a Business Reporter client.
In the current dynamic and sustainability-focused retail landscape, companies find themselves at a crossroads. With consumers placing increasing importance on eco-friendly choices and new regulations reshaping the industry, organizations must strategically plan and act to remain compliant and competitive. This article explores the imperative shift to circular business models and highlights the pivotal role of Product Information Management (PIM) software, such as that developed by inriver, in driving sustainability efforts.
The paradigm shift in retail
As sustainability takes center stage, consumer behavior is undergoing a notable transformation. More than a third of surveyed shoppers reported a shift in their buying habits, with nearly 30% opting for sustainable products more frequently. This shift is not just a trend, but a reflection of a broader movement towards ethical and environmentally conscious choices.
To thrive in this evolving landscape, companies must adopt a long-term mindset, especially when it comes to transparency in production. Decision-makers now have the task of making choices about materials, components, and production processes that align with circular principles, emphasizing reuse, repair, and recycling throughout a product’s lifecycle.
The product’s circular journey and the role of PIM
At the heart of this transformative process is the product information journey. Every stage, from conception to end of life, requires recalibration to meet the demands of a circular product lifecycle. This is where Product Information Management (PIM) comes in as a central axis.
PIM drives circularity at every stage of a product’s journey – from initial design and sourcing to manufacturing practices, distribution, customer acquisition, and most importantly, beyond the point of sale. Understanding the importance of product data is just the starting point. The next critical step is to transform this data into clear, actionable, and comprehensive product information that adds value throughout the entire lifecycle.
The regulatory landscape
There have been a number of sustainability regulations introduced globally in recent years, from the EU’s Waste Electrical and Electronic Equipment (WEEE) directive to California’s Proposition 65 and France’s Repairability Index. However, the impending Digital Product Passports (DPPs) are the most comprehensive legislative intervention to date.
The DPP is a unique “digital twin” for each physical product. It serves as a secure digital record that covers production, transaction, and sustainability data throughout a product’s lifecycle. This information, including details about relevant parts and components, is accessible to end-users through a QR code or similar identifier attached to the physical product.
The strategic value of digital product passports
Aside from enabling regulatory compliance, DPPs are a potential game-changer for companies. Transparency in the supply chain data not only positions companies to meet current regulations but also prepares them for more stringent future requirements. There are potential cost and business risk implications for companies lacking a transparent supply chain.
DPPs are lauded for their ability to enable traceability and responsible practices. By providing consumers with information about the environmental impact of their purchases, brands and manufacturers can transform regulatory requirements into a framework for transparent manufacturing practices. This promotes greater accountability towards a sustainable future collaboratively.
Gaining with PIM – the inriver advantage
At the core of this transformative journey is Product Information Management (PIM) software, and inriver stands out as a solution designed to meet the growing needs of enterprise brands and manufacturers. A PIM system that can centralize, standardize, and distribute complex product catalog data, inriver represents an intelligent business investment, especially for enterprise-level entities.
The strength of inriver lies in its focus on flexibility and extensibility, critical attributes to support complex product attributes and relationships. The software was developed with these features long before the emergence of sustainability use cases. Additionally, inriver is committed to continuous development and innovation in response to evolving business needs, making it a strategic choice for companies looking to stay ahead in the rapidly changing retail landscape.
The essential business investment
For enterprise brands and manufacturers, a PIM capable of consolidating product information from origin through end-of-life and recycling is no longer a luxury, but a necessity. The introduction of PIM can revolutionize product data governance, support compliance with DPP, and transform marketing and sales strategies to align with sustainability goals.
Companies should consider PIM not as a future investment, but as a strategic move to be initiated today. For future-ready operations, an extensible product data platform is crucial, capable of accommodating and adapting to new product attributes in a scalable and automated manner.
Navigating the future
Companies need to be able to successfully navigate the sustainable future. Circular business models, regulatory compliance, and the transformative power of PIM are key to this, and inriver stands out as a solution tailored to meet the complex challenges of the modern retail landscape. As retail continues to evolve, companies that invest in sustainability, transparency, and flexible data models today will be better positioned to thrive in the unpredictable future that lies ahead.
For more information, please visit www.inriver.com.