Navigating the sustainable future: the crucial role of PIM in circular business models

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Shop ‘til you stop: As we look to be more sustainable, there has been a notable shift in purchasing habits ( Provided by Inriver)

inriver is a Business Reporter client.

In today’s dynamic and sustainability-focused retail landscape, businesses are at a crossroads. With consumers increasingly prioritising eco-friendly choices and new regulations reshaping the industry, organisations must strategically plan and act to remain both compliant and competitive. This article explores the imperative shift towards circular business models and underscores the pivotal role of product information management (PIM) software, such as that developed by inriver, in driving sustainability efforts.

The retail paradigm shift

As sustainability takes centre stage, consumer behaviour is undergoing a notable transformation. Over a third of surveyed shoppers have reported a shift in their purchasing habits, with nearly 30 per cent opting for sustainable products more frequently. This shift is not merely a trend but a reflection of a broader movement towards ethical and environmentally conscious choices.

To thrive in this evolving landscape, businesses must embrace long-term thinking, especially concerning transparency in manufacturing. Decision-makers are now tasked with making choices about materials, components and production processes that align with circular principles, emphasising reuse, repair and recycling throughout a product’s life-cycle.

The circular product journey and the role of PIM

At the core of this transformative process lies the product information journey. Every stage, from ideation to end-of-life, demands recalibration to meet the demands of a circular product life-cycle. This is where product information management (PIM) emerges as a lynchpin.

PIM drives circularity at each stage of a product’s journey – from initial design and sourcing to manufacturing practices, distribution, customer acquisition and, crucially, beyond the point of sale. Understanding the importance of product data is just the starting point. The next critical step is transforming this data into clear, actionable and comprehensive product information that delivers value across the entire life-cycle.

The regulatory landscape

There has been a slew of sustainability regulations introduced globally in recent years, from the European Union’s Waste and Electrical Equipment (WEEE) directive to California’s Proposition 65 and France’s Repairability Index. However, the impending Digital Product Passports (DPPs) as 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 encompassing production, transaction and sustainability data throughout a product’s life-cycle. This information, including details about relevant parts and components, is accessible to end-users via a QR code or a similar identifier attached to the physical product.

The strategic value of Digital Product Passports

Beyond enabling regulatory compliance, DPPs are a potential game-changer for businesses. Transparency in supply chain data not only positions companies to meet current regulations but also prepares them for future, more stringent requirements. There are potential cost implications and business risks for companies lacking a transparent supply chain.

DPPs are hailed 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 turn regulatory requirements into a framework for transparent manufacturing practices. This fosters greater accountability towards a sustainable future in a collaborative manner.

Winning with PIM – the inriver advantage

Central to this transformative journey is product information management (PIM) software, and inriver emerges as a solution designed to meet the evolving needs of enterprise brands and manufacturers. A PIM system that can centralise, standardise and syndicate complex product catalogue data, inriver represents a shrewd business investment, particularly for enterprise-level entities.

inriver’s strength lies in its focus on flexibility and extensibility, attributes critical for supporting complex product attributes and relationships. The software was built with these capabilities long before sustainability use-cases emerged. Moreover, inriver is committed to continuous development and innovation in response to the evolving needs of businesses, 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 sourcing to end-of-life and recycling is no longer a luxury but a necessity. Introducing PIM can revolutionise product data governance, support DPP compliance and transform marketing and sales strategies to align with sustainability goals.

Businesses should consider PIM not as a future investment but as a strategic move to be initiated today. To future-proof operations, an extensible product data platform capable of accommodating and adapting to new product attributes in a scalable and automated fashion is paramount.

Navigating the future

Businesses need to be able to navigate the sustainable future successfully. Circular business models, regulatory compliance and the transformative power of PIM are central 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, businesses that invest in sustainability, transparency and flexible data models today will be better positioned to thrive in the unpredictable future that lies ahead.

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For more information, please visit www.inriver.com.