By Carrie Tallett, Senior Product Manager at Forterro’s Orderwise
New Extended Producer Responsibility (EPR) rules have come into force in the UK and they will have a significant impact on retailers and brands of all sizes. EPR aims to shift the environmental and financial burden of packaging waste onto the businesses that create it, and forms part of a much broader trend toward sustainability and transparency in supply chains.
But for many retailers, particularly the smaller and mid-sized stores, figuring out what EPR means in practice is challenging. What does EPR mean for retailers and how can technology ease the burden?
What Is EPR?
EPR is a government initiative that places the responsibility for the entire lifecycle of packaging on the businesses that put it into circulation. That includes design, distribution, collection, and disposal.
It’s about corporate social responsibility and environmental traceability. If a business uses or supplies packaging in the UK, it is now obligated to know exactly where that packaging comes from, how much is being used, and how it’s dealt with at the end of its life.
While this isn’t an entirely new concept in Europe, it’s a significant change for UK retailers, particularly those who rely on third-party suppliers, use multiple packaging types, or operate without detailed supply chain tracking systems.
Challenges for smaller retailers
Perhaps the biggest challenge for smaller retailers is around data. For many such businesses, particularly those without sophisticated systems in place, EPR reporting can seem impossible.
We often speak to owners of mid-sized businesses looking to introduce ERP software, who are still using carbon paper or Google Sheets to track deliveries. Expecting them to gather and submit detailed packaging data is a big ask. Furthermore, there hasn’t been much guidance from the government around EPR.
The very smallest businesses do not fall under EPR rules, but this situation is unlikely to be permanent. Regulations like this tend to trickle down, so businesses of all sizes should be looking at EPR now.
ERP to address EPR
For businesses using the right ERP solution, EPR becomes far more manageable. For example, Orderwise is transactional by nature. From the moment an item enters a business, they have all the relevant data: when it arrived, who booked it in, what packaging it came in, what supplier it came from. That traceability is crucial.
Even if a retailer hasn’t been tracking packaging data explicitly, most of the relevant information is already stored in the system – it just needs organising. In this instance, a data health check and then mapping what you’ve got to the government’s reporting templates is a smart move.
ERP and managing costs
EPR also comes with both upfront and ongoing costs. Businesses must pay a registration fee (around £200 for small organisations and more than £1,500 for larger ones) and may also face indirect costs as packaging suppliers pass on their own compliance costs.
Some suppliers will increase prices to cover their EPR overheads, which means you may see higher costs on your end. An ERP solution allows you to track and distribute those costs across your product lines, so you can see where margins are shrinking and adjust prices accordingly.
That means instead of applying a blanket price increase across all products, retailers can make smart, data-driven pricing decisions. If your flat-pack boxes have gone up 2.5% in cost but your smaller mailers haven’t, you don’t need to raise prices on everything, and can be targeted and strategic.
The road to fully sustainable packaging
While EPR doesn’t mandate switching suppliers or packaging materials, many retailers may see this as an opportunity to go greener. It makes sense to work with suppliers who are already EPR-compliant. Some businesses are even treating EPR certification like a trust badge, much like B Corp certification.
This builds on earlier government initiatives like the Plastic Packaging Tax, which has already nudged many brands toward using recycled and recyclable materials. The groundwork has already been laid for fully sustainable packaging – EPR is just the next step—and it won’t be the last.
EPR also dovetails with future regulatory moves, like the introduction of Digital Product Passports (DPP) in the EU. These tools will require even deeper product traceability, something only well-integrated systems can support.
For retailers, it all adds up to one thing: data is no longer optional. Without the systems in place to track packaging and cost changes, compliance will get harder and more expensive. If retailers are working with smart ERP solutions, then not only will they stay on the right side of regulation, but they will also gain a clearer view of the business and overall environmental impact.
EPR may feel like another regulatory burden, but for forward-thinking retailers, it’s a chance to modernise operations, strengthen supply chains, and build consumer trust. Retailers who prepare now will be in a far stronger position when the next wave of regulations hits, and the ones who embrace technology will find this much easier than they might think.
