A Digital Thread that Weaves Every Stage of the Product’s Journey
As the bar for substantiating sustainability commitments continues to rise, Product Lifecycle Management (PLM) systems are going to play a critical role in helping brands and manufacturers meet the requirements of the upcoming Digital Product Passport (DPP) regulations. These regulations, which focus on providing full transparency across a product’s lifecycle, are going to demand that brand and retail businesses have systems capable of tracking and documenting key data so that they can then disclose it afterwards. This means data across the full, extended, product lifecycle – material development, colour management, sourcing, environmental impact, production processes, and much more.
When I look at the regulations that are crystallising (and at how consumer sentiment is evolving), I’m convinced that PLM solutions are going to be the best fit for the growing list of companies that need a solution to centralise and act on that data. Just PLM has been the information backbone for product design and development, I now see it as filling the same role when it comes to collecting and managing essential product data such as the Bill of Materials (BOM), and the Bills of Processes (BOP), which will be used to measure the CO₂ impact of products and operations, and which companies will need in order to comply with DPP requirements.
How PLM Supports DPP Compliance
To better understand how PLM helps in meeting DPP regulations, let’s break down the digital product journey, showing how the digital thread can connect each critical step and help unlock traceability, support proactive ecodesign strategies, and create accountability across them all.
Design & Development:
At the earliest stages of product design, PLM systems can support green design processes by helping teams to select materials and subsequent processes that offer the lowest environmental impact. This data can flow seamlessly from the design phase into CAD/CAM systems, 3D and digital product creation (DPC) tools, and ultimately into the BOM, which will include extra details on material yields, waste, and supplier certifications. As a result, brands can make informed decisions that support sustainability goals while maintaining traceability from the beginning to the end of a given product’s lifecycle.
Sourcing & Manufacturing:
While the focus of PLM initiatives is sometimes on design and development, the right PLM system can also continue to track key metrics during sourcing and manufacturing. By assisting with the capture, consolidation, and use of real-time or near-real-time updates on energy use, water consumption, emissions, and other environmental factors, companies using PLM are likely to have a strong footing when it comes to ensuring compliance with the Ecodesign for Sustainable Products Regulation (ESPR). The right PLM platform will also integrate critical data across the entire value-chain – including the sourcing and production stage – feeding it directly into a DPP compliance reporting engine.
Production & Distribution:
Throughout production, PLM systems should be able to ensure that data on labour standards, ethical sourcing, and environmental impacts are consistently updated and shared across the value-chain. This level of transparency will support DPP reporting requirements by enabling continuous tracking of a product’s lifecycle from raw material to consumer – and ultimately to the end of life of the product.
Consumer Transparency:
Once a product reaches the brand, retailer and eventual consumers, PLM, properly implemented and used, supports the DPP requirements by providing full visibility into a product’s lifecycle, from material origins and production processes to CO₂ footprints. This information can be made accessible through QR codes or blockchain technology, giving consumers clear insights into how the product was made, how to care for it, and what to do at its end of life. PLM also serves as a central hub, ensuring that the data is always up-to-date and shared in real-time across all stages of the value-chain.
When it comes to considering what information goes into a consumer-facing label, standard, or system, having this kind of process and data coverage will provide the most adaptable foundations.
Critical Data Points in the Digital Thread
To meet the coming DPP regulations, it is important not just to select any PLM solution. Fashion companies should be looking for PLM systems that are capable of tracking and reporting on the following critical data points:
- Material Origins: Information about the sources and sustainability certifications of the materials used.
- Environmental Footprint: Data on emissions, energy usage, water consumption, and waste generated during processing and production stage.
- Ethical Compliance: Details on fair labour practices, factory certifications, and adherence to ethical sourcing standards.
- End-of-Life Instructions: Guidance on how to recycle or responsibly dispose of the product, supporting circular economy goals.
Why the Digital Thread and PLM Matter
While PLM has been around for a long time in fashion – something I know from first-hand experience! – the timeline for action today is short. As DPP regulations under the ESPR become mandatory starting from 2026, businesses in the fashion, footwear & textiles industry must prepare to comply. By 2030, most fashion brands and retailers (all sizes) operating in or exporting to the EU will need to have systems in place to manage product data, including origin, composition, recyclability, labour, and environmental impact.
Non-EU businesses aiming to export to the EU will also need to adopt PLM systems to manage these data requirements. While there is no equivalent DPP regulation right now in the U.S., growing global trends toward supply chain transparency and sustainability mean it’s wise for American brands and retailers to start preparing now. As consumer demand for sustainability grows, brands will need to respond with verifiable data.
How PLM Facilitates Compliance and Future-Proofs Businesses
Based on my own experience, and projecting forward from what I know about how the fashion industry has adopted PLM, these systems are going to be integral to managing the large datasets required by DPP regulations. I believe they are the only systems are that can fully encompass every aspect of the product journey, from design and development to manufacturing, testing, and distribution. While ERP systems play an important role in handling financial transactions and supply chain management, it is the PLM system that will be most effective in ensuring end-to-end DPP compliance.
The right PLM platform can also enable brands to expand their value-chain visibility from raw material suppliers to garment factories, dyeing, certifications, energy usage, and labour conditions. This level of visibility is crucial for not just meeting regulatory and consumer expectations for sustainable, ethical fashion, but also identifying opportunities for brands, retailers, and supplier to actually differentiate themselves from the competition based on provable standards of sustainability.
Call to Action for Fashion Brands & Retailers
Given the urgency and scale of the challenge, it’s my firm belief that fashion businesses must act now – investing in PLM systems capable of managing the critical data required for DPP compliance, and getting ahead of both legislation and an increasingly competitive landscape. This digital transformation will not only ensure future compliance with regulations but also position brands as leaders in responsible, transparent fashion.
“In the coming years, the digital thread that connects PLM to DPP regulations will become essential in weaving sustainability and compliance into the very fabric of fashion.”