Manufacturers are doubling down on circular supply chains for their ability to reduce costs while meeting sustainability requirements and driving innovation. Over 75% of manufacturers already prioritize them, and by 2027, that number will reach 95%. Yet, execution remains a challenge. This is because most supply chain systems lack visibility across the entire product lifecycle and aren’t designed for circularity.

Most Enterprise Resource Planning (ERP) and Product Lifecycle Management (PLM) systems track products only through production and sale, not reuse, refurbishment, or recycling. This fragmentation causes material loss, inefficient remanufacturing, slow reverse logistics, and compliance failures.

So, in a circular economy, product information or product catalogs need to be more detailed, up-to-date, and transparent to facilitate product life extension and resource optimization. Here’s how effective product catalog management supports a circular supply chain:

Enabling Product and Component Traceability

Most manufacturers struggle to track components beyond production. Traditional systems don’t capture real-time, end-to-end visibility across a product’s lifecycle. Thus, desirable, valuable materials become untraceable due to growing data silos, and the challenge is reduced to blind guessing. Moreover, following the increase in regulations such as Digital Product Passport (DPP) and Extended Producer Responsibility (EPR), traceability became the foundation of the circular economy.

Through the use of IoT-connected smart labels and blockchain integration, manufacturers are empowered with real-time visibility in sourcing, production, and reuse. Detailed and consolidated product catalog information builds a structured digital record of all components, including material composition, supplier details, serial numbers, and lifecycle data. Thus, tracking product origin, sourcing practices, and supply chain movements becomes easier.

Facilitating Reuse and Remanufacturing

In remanufacturing, it is cumbersome to figure out how to efficiently bring the used components back into the supply chain. Manual sorting and classification of parts take time, and misjudging a component’s condition can mean either discarding something valuable or mistakenly reusing a faulty part.

Centralized catalog management fastens the process of material grade evaluation and reuses potential by automating material assessments using AI and historical performance data. Moreover, by establishing a product data hub, all necessary product details on each component based on its usability can be linked to the right remanufacturing process.

For example, AI-driven catalog management in the electronics industry can determine the state of components, how components are supplied and integrated into existing product models, and trigger automated repair workflows. Using AI, product teams can replace a circuit board's manual check and classify whether it is repaired or recycled, increasing turnaround times and reducing waste material.

Supporting Reverse Logistics and Returns Management

Online purchases have an even higher rate of return, which is three times more than in-store purchases, resulting in inventory inefficiencies and margin compression.

Handling returns for refurbishment, resale, or recycling is complex, costly, and data-intensive. In fact, manual sorting of the product based on its conditions, manufacturing dates, and warranty periods for accurate return eligibility checks is quite cumbersome.

Manufacturers can streamline return and reverse logistics processes through centralized product information and automated workflows. Automated workflows and reverse logistics partners integration provide data-driven insights into whether a returned good will be repaired, resold, or tossed into the recycling loop, minimizing waste and maximizing its recovery value.

Ensuring Regulatory and Sustainability Compliance

Regulations like the DPP, EPR, and Scope 3 carbon reporting require real-time, auditable product data. Yet, many manufacturers continue to use fragmented systems that make compliance a reactive process.

A single and trusted source of product catalogs embeds compliance attributes directly into product records, automating tracking, sustainability certifications, and reporting frameworks. With blockchain-backed verification, companies can prove circularity claims instantly, reducing audit risks and streamlining regulatory processes.

Integrating product catalog management solutions with AI-driven sustainability dashboards supports manufacturers in automatically assessing compliance gaps. It reduces the risk of non-compliance burdens and helps with reporting in a global regulatory context. Rather than chasing compliance deadlines, manufacturers can turn data-driven insights into a business differentiator and ensure compliance with international data privacy laws, protecting brand reputation.

Enabling Circular Business Models (PaaS, Refurbished Sales)

Manufacturers shifting to Product-as-a-Service (PaaS), buyback programs, and refurbished sales require precise tracking across multiple lifecycle stages, but most product data systems weren’t built for this.

Product Catalog Management (PCM), particularly, with the help of a Product Information Management (PIM) system, facilitates multi-condition product versioning, AI-driven pricing, and automated resale workflows, thus furnishing scalable product lifecycles. It guarantees that the returned product can become an asset that can be reintroduced in the market.

Predictive lifecycle analytics in a PCM/PIM system can forecast a product's residual value over time and thus allow manufacturers to determine the best time for its recovery, remanufacturing, or recycling. As 97% of manufacturers are embedding circularity for resilience and cost efficiency, PCM turns sustainability into a circular supply chain optimization strategy. It reduces raw material dependency and enhances supply chain predictability.

Enhancing Customer Experience with Circular Product Data

With 85% of consumers prioritizing sustainability and willing to pay nearly 9.7% more for sustainable products, manufacturers must maintain detailed material composition data for sustainable product lifecycle management.

Modern consumers go beyond the product itself—they seek open, honest, and transparent information. They are interested in the sustainability of a product, how repairable it is, and how to dispose of it in an environmentally friendly way.

PCM and PIM systems help provide accurate, consistent, and enriched product information, fostering trust, loyalty, and engagement. Moreover, it enables dynamic QR codes, digital labels, and consumer portals that offer real-time repair guides, refurbishment options, and environmental impact data.

Best Practices for Managing Product Catalogs in a Circular Supply Chain

The circular supply chain is a scalable and commercially viable strategy, so integrating PIM into manufacturers' digital infrastructure is key to managing product catalogs of any type and size.

• Integrate PIM with PLM, ERP, and IoT: Real-time data lineage for live material tracing
• Standardize product data formats: Stops traceability inconsistencies and enables precise reuse classification
• Enhance digital labeling: QR codes point to sustainability data, refurbishment options, and recycling information
• Leverage AI-powered PIM: Automates component assessment, resale grouping, and predictive maintenance
• Embed compliance features: Future-proof operations by embedding DPP, EPR, and Scope 3 in product records

In Conclusion

Circular supply chains thrive on structured product data, intelligent tracking, and seamless integration. Manufacturers who optimize product catalogs at every lifecycle stage unlock cost savings, regulatory compliance, competitive advantage, and better customer loyalty.

Integrating the PIM system with the right tech stack, supply chain collaboration, and aligned with the specific use case can add exciting capabilities for enabling circular product data experiences.