How the digital product passport is transforming internal processes

From compliance project to efficiency driver

Many industrial companies initially view the Digital Product Passport (DPP) as a regulatory obligation. However, those who see it solely as a compliance project are underestimating its potential. When implemented correctly, the DPP becomes a driver for process automation, increased efficiency, and structural modernization.

The crucial question is: Do you use the Digital Product Passport only to fulfill your obligations—or as a strategic lever?

Automated data collection along the supply chain

Industrial companies in mechanical engineering or component manufacturing work with complex parts lists, numerous suppliers, and a wide variety of variants. Sustainability indicators, material data, and origin information are often scattered across different sources.

The digital product passport requires this information to be systematically recorded and made available in a structured manner. When suppliers are connected via defined interfaces, automated data collection is created along the entire value chain.

The result:

• Less manual coordination
• Reduced susceptibility to errors
• Greater transparency regarding material and sustainability data

Reduction in manual maintenance efforts

In many companies, product data is maintained multiple times – in the ERP system, in Excel spreadsheets, in marketing, in service. This redundant data storage causes effort, inconsistencies, and delays.

A central data platform, such as a PIM system (Product Information Management, i.e., a central platform for managing all product data), creates a “single source of truth.” Information is recorded once in a structured manner and played out across systems.

The digital product passport acts as an accelerator here: What is required by regulation leads internally to clearer processes and fewer media breaks.

Faster new product launches

Time-to-market is a decisive competitive factor, especially for technical products with a wide range of variants. When sustainability and product information is available in a structured form, the coordination effort between development, purchasing, quality assurance, and sales is reduced.

Instead of compiling information manually, it is available automatically. New product launches become more predictable and documentation requirements are fulfilled more quickly.

Sustainability thus becomes an integral part of efficient processes rather than a hindrance.

Transparent communication as a distinguishing feature

Business partners and customers increasingly expect reliable sustainability information. Those who can provide transparent, valid data strengthen trust and market position.

In mechanical engineering or the industrial supply industry, the digital product passport can become a competitive advantage:

• Verifiable material transparency
• Clear CO₂ information
• Structured service and repair data

Transparency thus becomes a distinguishing feature rather than a regulatory requirement.

Sustainability as an operational efficiency factor

The greatest added value is created when the Digital Product Passport is understood as a transformation project. Companies that consolidate their data architecture and automate processes benefit from:

• Lower administrative costs
• Better data quality
• Higher process speed
• Scalability for future regulatory requirements

The DPP thus becomes a catalyst for a modern, integrated system landscape.

Conclusion for management

The digital product passport is much more than a compliance tool. It forces companies to take a structural look at product data, supply chains, and sustainability information – and at the same time opens up considerable potential for efficiency gains.

Those who take a strategic approach to the Digital Product Passport not only increase compliance but also operational performance. Especially for industrial companies with complex products, it becomes a lever for process automation and competitive advantages.

Let us examine the efficiency potential that lies dormant in your product data landscape.