Future-proofing with Digital Solutions
RFID technology has become a familiar term in our industry. But how can we fully leverage the opportunities it offers? And how can you future-proof your business with a Digital Product Passport? Andreas Heegaard Dam, our expert in variable data, provides insights to help us understand and utilise the complex concepts in this field.
A recap of the terms
What is RFID?
Radio Frequency Identification is a smart feature to add to products to enable unique product tracking. Basically, it is a mini chip and an antenna combined in a label, sticker, or similar that enables scanning without line-of-sight.
What is DPP?
Digital Product Passport is a digital record that provides detailed information about a product's origin, materials, production process, and lifecycle, promoting transparency and sustainability. It allows consumers and stakeholders to easily access and verify essential product data via a simple scan or online lookup.
What does 'digital solutions' cover?
STUDIO 9's digital solutions cover all products that are induced with variable data. The physical products are care & content solutions, price stickers, and RFID inlays. The digital products are Digital Product Passports, our own Product ID platform, and our order portal, which structures all data and items for our customers’ orders.
How is data collected and shared with RFID? And when does this data sharing begin and end?
There are multiple ways to integrate and track RFID throughout its life cycle. An RFID chip can be integrated into a care & content label, placed in a sticker, or sewn directly into the clothing. Traceability begins when the chip shares information as it is scanned the first time. From there, every movement can be tracked as it is scanned again and again.
You will be able to trace an item’s journey from shipment by the supplier to arrival at the logistics centre and, finally, its delivery to the warehouse and retail stores. With RFID technology, which doesn't require direct line-of-sight scanning, warehouses can be equipped with scanners to register all inbound and outbound goods automatically. This streamlined method of tracking items as they enter and exit warehouses, stores, or other locations is far more efficient than manual handling, significantly reducing the time required and minimising human errors.
Additionally, in-store stock counting can be performed daily instead of weekly or monthly. This ensures products remain available for customers and facilitates easy restocking solutions. Every store can function as a mini-warehouse for e-commerce, enhancing overall efficiency and customer satisfaction.
Does it mean that consumers can be traced by the RFID?
No, there are ways to ensure that consumers will not be traced after the purchase of RFID products. When an item attached with RFID is bought, the RFID antenna will be either switched off, meaning that it will no longer be active/traceable, or you can turn the active area of the antenna down to a very short scanning distance, meaning that it will need to be touched by a scanner to reach the data.
How does the Digital Product Passport (DPP) enhance the customer experience?
Digital Product Passports enhance customer experience by providing transparency and building trust through detailed product information, including origin, materials, and authenticity verification. They enable personalised recommendations and tailored experiences based on customer preferences and past purchases.
DPPs also improve product knowledge with digital manuals, usage instructions, and maintenance tips, helping customers maximise their product's lifespan and performance. They address sustainability and ethical considerations by providing information on environmental impact and ethical practices, appealing to socially conscious consumers.
Post-purchase support is streamlined with easy access to warranty information and repair services, and customers can track product history for high-value items. DPPs simplify returns and resale processes, enhancing resale value with comprehensive product documentation.
Overall, DPPs create a more informed, transparent, and personalised customer journey, enhancing trust, engagement, and satisfaction. At STUDIO 9, we have developed a platform that we’ve named Product ID which will showcase information about the DPP. To enter the platform, consumers simply use their phones to scan a QR code or NFC tag (known from credit cards and key chips) placed on the product’s trims.
How do these digital solutions contribute to sustainability and traceability?
With this internal and external traceability, you become more aware of your processes and choices. The more open you are as a company, the more sincere it appears in the eyes of the consumers. It proves your stance and willingness to be transparent, underlining that you have nothing to hide. The digital solutions enable brands to actually back up their sustainability claims by showing case certifications and traceability.
What future innovations do you foresee in this field?
I believe that Product Passports will gain more importance than we can even imagine. The benefits that we can integrate at this point are just the beginning, and they will evolve with many new opportunities.
The DPP will also nudge companies to make better choices for their production. This could, for example, mean using fewer compositions of higher-quality raw materials to encourage reuse, as consumers will compare and consider these choices during the buying process.
I also think the future holds digital wardrobes for private items, making it possible to shop and be offered matching products. In stores, we will see more advanced smart mirrors in the fitting rooms that can show all information about any item and be used to ask for another size or colour. The same goes for smart shelves that can provide live stock-tracking to the sales associates. We will likely add those types of products to our future digital solutions.
