Digital Product Passports, ESG regulations, product traceability — the list of compliance requirements companies must navigate continues to grow. Unfortunately, meeting these requirements isn’t something companies can do on their own. Much of the data and documentation required comes from suppliers, often across multiple tiers of the supply chain.
So, how do you get suppliers to participate without creating even more work and complexity for them? And what roles can AI, industry standards, and supplier networks play in making compliance easier and more scalable? Those are some of the questions I discussed with Brian Carelli, VP, Sustainability and Partnerships at Infor, during a recent episode of Talking Logistics.
The Growing List of Requirements
Our conversation began with a discussion of what’s changing. Brian mentions that digital product passport (DPP) requirements will begin taking effect in the European Union on February 18, 2027, starting with certain types of batteries. The challenge is that much of the data required comes from suppliers. As a result, Brian says customers are mapping their supply chains much more extensively than they were previously. They’re going deeper than tier 2 and tracing goods with greater clarity. For example, companies in the retail and fashion industries are tracing raw materials, such as cotton and wool, all the way back to the farms where they originated. And suppliers are starting to realize this is a core part of their business — they have to provide this data.
Brian also notes that suppliers can no longer simply claim to be in compliance; they have to show proof. As he explained, compliance is shifting from declarations to evidence-based verification. This requires suppliers to gather information and documentation from multiple sources and can be costly, especially when different customers request the same information in different formats. Fortunately, technology has advanced significantly, especially through the use of AI.
And more regulations are coming as well. For example, Brian noted that the food industry will need to trace products down to the batch and lot level across their supply chains in 2028.
Lessening the Burden on Suppliers
Brian points out that one way to lessen the burden on suppliers is for them to be part of a business network. That way, they can upload their data once and share it with multiple customers across the network. “Suppliers want to feel like they own their own data,” Brian says. They want to control which members of the network can access specific information.
Another way to lessen the burden is for the industry to standardize the data and formats requested so that suppliers aren’t continually bombarded with different requests for basically the same data. For example, Brian noted that a contract manufacturer with 20 customers may receive hundreds of different requests for information. Standardizing these requests would reduce the work and costs involved.
This standardization can also improve transparency, allowing suppliers to differentiate themselves based on the information and certifications they provide. As I commented during our discussion, standards are critical because otherwise you end up with the “Tower of Babel” problem that has always existed in supply chain management: one company calls something by one name, another company calls it something else.
I also referenced our 2026 State of Supply Chain Operating Networks Market Report, which highlighted compliance as one of the areas where network-based platforms can help companies share information and documentation in a much more scalable and cost-efficient way.
How Can AI Help?
I next asked Brian how AI can help both suppliers and the companies that use the data provided.
Brian notes that historically, suppliers provided traceability data by uploading documents such as invoices, purchase orders, ASNs, etc., and then a human had to check all of that data. This was typically done for high-value goods or specific materials that needed to be tracked. Now AI can read these PDFs and extract the information to make the data immediately readable and reportable. The next step is for AI to analyze and verify the information, such as checking whether purchase order numbers and addresses match. Brian notes that progress is being made in this area, although the technology isn’t fully there yet.
Brian says the ultimate goal is to trace everything, everywhere, all at once. This requires a more scalable approach than manually uploading and reviewing individual documents. For example, Brian described how Infor’s NexTrace solution uses AI to interpret and map data from supplier reports, reducing the need for costly API integrations. AI can even interpret reports submitted in different languages, such as a spreadsheet uploaded in Vietnamese, without requiring manual translation.
He also explained how lot tracing works across a network. A single production run from a tier-three supplier may flow through hundreds of downstream suppliers and ultimately reach dozens of brands. By collecting and sharing that information once across the network, companies can trace the movement of goods without requiring suppliers to repeatedly submit the same data. AI can also identify gaps in supplier data and reach out to suppliers to request missing information.
What’s the Incentive for Suppliers?
The increased regulations and associated data collection and reporting requirements are putting tremendous pressure and costs on suppliers. I asked Brian what incentives there are for suppliers to participate in this new digital network model.
Brian points out that participating in a digital network can greatly reduce the amount of human effort, and therefore costs, currently required to gather and send vast numbers of PDFs and other documents to multiple customers. AI can help facilitate this across multiple levels of the network by interpreting and mapping data from different systems without requiring traditional API-to-API integrations.
Brian also suggests that suppliers can choose to upload product information as well. This can help tier 2 and tier 3 suppliers make their products known to potential new customers they may not have even known existed. It also allows companies to discover new suppliers and diversify their supply chains. For example, Brian described how a leather manufacturer in Brazil could use its supplier profile to showcase its products and capabilities to potential customers across the network. Meanwhile, a company looking to reduce its exposure to suppliers in a particular country could use the network to identify alternatives.
As I pointed out during our conversation, consumer marketplaces already provide similar capabilities, allowing buyers to search for products, compare suppliers, and review ratings. I believe business networks could eventually offer similar capabilities, helping buyers find new suppliers and helping suppliers attract new customers.
Dealing with Future Regulations
The regulatory environment is certainly not static. So, I asked Brian how standardization and supplier networks can help companies deal with new, possibly more stringent regulations globally.
Brian had some great insights on how companies can prepare for future regulations by collecting information once and using it across multiple compliance requirements. He also discussed how this information could eventually be shared directly with consumers to support product claims and provide greater transparency. Brian shared additional insights, including how these capabilities can help companies improve their businesses, so I recommend you watch the full episode to learn more. Then keep the conversation going with your own comments and questions.
