How to Shape Your Digital Product Passport (DPP) Strategy

Choosing the right level of granularity for your business

As sustainability regulations like the EU's ESPR begin rolling out, businesses must decide how granular their Digital Product Passports (DPPs) need to be. Get it right, and you streamline compliance while delivering traceability and value. Get it wrong, and you risk excessive cost, poor data quality, or being left behind.

To help, we’ve developed a tiered pricing and strategy model that aligns with four levels of product granularity — from Stock Keeping Unit (SKU) to Customer Order level. Here’s a step-by-step guide to shaping your DPP strategy.

Step 1: Start with Your Business Goals

Before choosing your DPP level, ask:

• Are you aiming for basic compliance or leadership in transparency?

• Do your customers ask for traceability?

• How complex is your supply chain?

• What are the cost and data capture implications?

🔸 Step 2: Choose Your Starting Level

Use the table below to understand the pros, cons, and cost of each level:

Stock Keeping Unit Level

Example: One passport for all rolls of White Fabric.

Best for: Businesses new to DPPs, seeking a low-effort entry point.

✅ Pros:

• Easiest and fastest way to start

• Low operational complexity

• Good for static stock items

⚠️ Cons:

• Doesn’t reflect product variations

• May not meet future compliance detail

• Limited downstream visibility

SKU Batch Level

Example: One passport for each new roll of White Fabric.

Best for: Suppliers needing basic chain-of-custody traceability.

✅ Pros:

• Stronger traceability

• Establishes data from a specific batch

• Enables transparency without full item-level tracking

⚠️ Cons:

• Risk if downstream data isn’t captured

• Still too coarse for high-compliance scenarios

Manufactured Batch Level

Example: One passport for every 1000 T-shirts made.

Best for: Midstream manufacturers with stable batch production.

✅ Pros:

• Affordable and scalable

• Suitable for growing compliance needs

• Enables consumer engagement (QR code access, story, materials)

• A balance of visibility and simplicity

⚠️ Cons:

• Not ideal for premium products or customisation

• Some transparency limitations for end buyers

Customer Order Level

Example: One passport for each T-shirt.

Best for: Brands offering individual transparency and customer-facing data.

✅ Pros:

• Highest traceability

• Enables consumer engagement (QR code access, story, materials)

• Fully ready for upcoming EU regulation detail

⚠️ Cons:

• Higher data input needs

• Less suited for low-value/high-volume products

🔄 Step 3: Plan Your Progression

Start simple, then move to detail. For example:

1. Phase 1: Start with SKU or Batch level (Bands A or B)

2. Phase 2: Move to Manufacturer Batch (Band C) as data improves

3. Phase 3: Scale to Customer Order level (Band D) for premium or regulated lines

🧩 Step 4: Mix and Match by Product

Not all products need the same passport level.
Use SKU-batch level for bulk fabrics, Batch-level for internal supply flows, and Order-level for final goods or exports to the EU.

📞 Ready to Shape Your Strategy?

At Pathway, we help businesses choose the right level and grow over time — without overcommitting early.

👉 Book a free DPP strategy session
👉 See our MVP demo and sample passports
👉 Email us to find our more