The Future of Commerce: Integrating Digital Product Passports with Code Scanners in the Retail Industry
Integrating Digital Product Passports (CPPs) with code scanners opens up new opportunities for retailers and consumers alike. This innovative technology has the potential to radically change the way we shop, manage product information and make consumer decisions. In this article, we take a closer look at how this integration is shaping the future of retail.
"Border control"
The Digital Product Passport (CPP) is a data set that contains comprehensive information about a product, from its origin to its composition, production methods and environmental impact. This data is stored digitally and can be easily accessed by scanning the product code. Code scanners, whether dedicated in stores or smartphone apps, serve as a gateway to the information contained in the CPP. Thanks to them, consumers can access detailed product data at a glance, significantly influencing the purchasing decision-making process. CPP is a key element in the drive for greater transparency and sustainability in commerce, and code scanners enable the practical use of this information in everyday shopping situations
All about the products
Integrating CPP with code scanners means that consumers have instant access to a wide range of product information. Imagine a situation where a customer, standing in front of a grocery shelf, can scan a code and instantly learn about the origin of ingredients, the production process or the product's carbon footprint, among other things. This ease of access to information not only facilitates informed purchasing decisions, but also promotes transparency throughout the supply chain.
Improving the purchasing process
Integrating CPP with code scanners can significantly improve the shopping process. Customers can quickly compare products, check their availability in different sizes or colors, and even make purchases without standing in checkout lines. Imagine a store where a customer can scan a product code, add it to a virtual shopping cart, and then pay for purchases through a mobile app, bypassing traditional checkouts.
Such a solution is currently being developed by the Kaufland store chain. The K-Scan service allows customers to scan products themselves while shopping. With K-Scan, you can save time and conveniently pay for your purchases without having to take out the products at the checkout.
The K-Scan service is a great way to save time and conveniently pay for purchases without having to take out the products at the checkout.
To use K-Scan, customers need to download a scanner at the entrance to the sales floor, or launch the K-Scan service in the Kaufland app, and then scan the barcodes of selected products on the fly using the scanner. After finishing shopping, the customer using the service should go to the self-service checkout to finalize the transaction. To complete the payment, scan the QR code pasted on each cash register, followed by the code that will be displayed on the scanner. Wanting to use the scanner on your phone, after installing the app, you need to fill out a registration form, accept the terms of use and confirm your current location. Subsequent stages of the process follow the same procedure.
The service is available in many Kaufland stores in Poland, including Warsaw, Krakow, Wroclaw, Katowice, Poznan and Lodz. The system was introduced in September 2022 and is very popular with customers.
The system is also available in a number of stores in Poland.
Increase transparency in the supply chain
One of the key aspects of CPP is the ability to track a product from production all the way to the store shelf. This feature is of great importance to consumers, who are increasingly interested in the origin of the products they buy. With CPP, the customer can check the place of origin of raw materials, factories or farms involved in production, transportation routes and intermediaries in the supply chain.
According to the GS1 organization, the introduction of CPP is a significant step toward increasing transparency and traceability in supply chains. GS1 stresses that CPPs will play a key role in reducing counterfeit goods by ensuring that each product can be uniquely identified and tracked throughout its journey. This increased transparency will discourage counterfeiting and encourage more ethical business practices.
Sustainability support
Integrating CPP with code scanners also plays a key role in promoting sustainability. With easy access to information about a product's environmental impact, consumers can make more informed purchasing decisions. They can check a product's carbon footprint, the use of water resources in production, the type and origin of packaging, and the product's recyclability or reusability. This information allows consumers to choose products that are more environmentally friendly, and according to this year's edition of the "EKObarometer" survey, conducted by the SW Research institute, it is important to two-thirds of consumers (66%) that the products and services they use are created with respect for the environment. This, in turn, motivates manufacturers to implement more sustainable practices.
Personalization of offerings
The data collected by code scanners during customer interactions with products is also a valuable source of information for retailers. Barcode scanners, which can integrate with CRM (Customer Relationship Management) systems, play an important role in this process. The scanners allow product information to be quickly and accurately entered into the system. In the context of CRM, this can mean easier tracking of customer purchases, order history or product preferences.
By analyzing this data, stores can better personalize offers, promotions or product recommendations. For example, a store can send personalized notifications about promotions on products in which the customer was previously interested. The system can also suggest alternative products that better match the customer's dietary or ethical preferences. In addition, the store can adjust the layout of products based on analysis of customers' shopping behavior, helping to increase consumer satisfaction and loyalty.
Technological challenges
Implementing CPP integration with code scanners also involves some technological challenges. Stores need to invest in appropriate barcode scanners that are capable of reading different types of codes (1D and 2D, including QR codes). In addition, it is necessary to create and maintain an extensive IT infrastructure to store and manage CPP data.
Another challenge is to ensure the compatibility of systems between different participants in the supply chain. Manufacturers, distributors and retailers need to work together to ensure a seamless flow of information from source to consumer.
The CPP is an important part of the supply chain.
Future trends
Integrating CPP with code scanners is just the beginning of the transformation in retail. In the future, we can expect full automation of shopping processes, where code scanners will automatically register products in the customer's shopping cart and make payments without going through the checkout. Integration with augmented reality (AR) systems will allow customers to see additional product information superimposed on a real image via smartphones or AR glasses. Developments in artificial intelligence will enable analysis of data from CPPs and code scanners to predict shopping trends and optimize inventory management. In addition, increased interactivity will allow consumers to not only read information from CPPs, but also add their own reviews, comments or suggestions directly to the digital product profile.
Collaboration with potential
Integrating Digital Product Passports with code scanners in retail has the potential to significantly change the consumer shopping experience. This technology not only increases the transparency and efficiency of store operations, but also promotes sustainability and enables more informed shopping decisions. While there are some challenges to implementing this technology, the benefits for consumers, retailers and the environment are significant. As the technology continues to evolve and become more widespread, we can expect to see further innovations that will shape the future of retail.
Statistically, the integration of CPP with code scanners is a step toward a more transparent, efficient and sustainable commerce system that will benefit everyone in the value chain - from manufacturers to retailers to consumers.
