Overview – ERP for Packaging Industry
According to a report by Mordor Intelligence, the packaging industry is estimated to reach USD 1.33 trillion by 2028, rising from USD 1.10 trillion in 2023, and the expected CAGR is 3.94%. During the forecast period, it is evident that the packaging industry will flourish. But it also implies that there will be several underlying challenges. Besides, strategies that can help the manufacturers overcome these barriers is an intelligent ERP for the packaging sector. This article highlights the urgent need to adopt business management software.
What is ERP in the Packaging Industry?
ERP stands for enterprise resource planning system. It is a business management tool helping all businesses across different industries streamline, simplify and automate their key business process, including the packaging industry. ERP for packaging helps the manufacturers seamlessly manage various production and back office tasks, such as stock keeping, automating production processes, tracking order deliveries and monitoring returns. In addition, ERP solutions can be customised and integrated with various other tools.
Challenges Faced by the Packaging Industry
Four common and ongoing challenges in the packaging industry are:
Increasing Sustainability Concerns: Sustainability is a rising concern in almost all sectors, and the packaging industry is not an exception. Manufacturers are trying to find a balance between greenwashing and finding actually sustainable alternatives.
Poor Product Supply: The supply chain is riddled with bottlenecks, export and import laws and mishandling of products.
Modern Technologies: New technologies like 3D printing, e-commerce fulfillment, etc., are posing new challenges for the packaging industry. Every company has to stay updated to remain competitive.
Increasing Customer Demands: As product variation increases, there is a constant need for different kinds of packaging. Moreover, as the markets are expanding, the demand for standard packaging is also rising steadily.
Role of ERP in the Packaging Industry
Adherence to Local and Global Regulations
An ERP helps the organisation follow local and international environmental laws and ensures the production process does not violate codes of conduct or standards.
Better Inventory Tracking and Supply Chain Management
An ERP for packaging lets the manufacturers monitor the stock levels and track the products at different stages of the supply chain.
Modern Solutions with New-age Capabilities
A modern ERP solution has several new-age technologies built into the system that helps companies stay abreast with new trends and adopt new technology seamlessly.
Precise Demand Forecasting
Predictive analytics and AI in intelligent ERP systems helps in managing order and precisely forecasting the demand so manufacturers can be future-ready.
Looking for Explosive Business Growth? Step Up with ERP Software for Packaging Industry
Feature of ERP for the Packaging Industry
An ERP software for the packaging industry enables manufacturers to achieve their productivity and profit goals through core features like:
Inventory Management: One of the top features of an ERP for packaging is inventory management. It gives the manufacturers a complete view of available raw materials, WIPs and finished goods. Such capabilities also improve the accuracy of inventory planning.
Procurement Planning and Management: An ERP for flexible packaging makes the procurement planning and management process smooth.
Production Planning: An ERP for the packaging industry significantly helps the manufacturers plan production, automate tasks, optimally utilise all resources, reduce wastage and get more output at the same cost.
Quality Control: The quality control module ensures that all products meet the KPIs and quality standards as well as pass quality checks. It helps in ensuring each batch is of the best quality.
ERP for Packaging Industry Benefits
There are plenty of benefits of ERP software for packaging, including:
Centralised Database
ERP software enables manufacturers to create a central data repository by collecting data from different departments, thus eliminating siloed data. Every member with access can access all crucial data on one platform. ERP implementation eliminates the need to maintain multiple software, therefore, saving money.
Enhanced Productivity
Intelligent ERP software reduces errors and automates complex business operations. Hence, the packaging company can enjoy enhanced productivity in less time.
Faster Decision-Making
ERP solutions enable teams to access real-time data from anywhere at any hour. Therefore managers can make faster decisions faster. Data-driven decisions are important for shaping a better future for the company.
Improved Customer Satisfaction
ERP software helps the organisation get a deeper insight into customer data, prepare data-powered marketing campaigns to improve customer relationships and serve them better with touchless transactions, multiple billing, feedback management, etc.
Better Connectivity and Data Sharing
ERP software allows multiple departments to connect through one platform to add, modify and share vital data within minutes. Customising the ERP software can also improve connectivity.
Advanced Data Interpretation
Modern ERP software perform advanced data analysis and displays them conveniently, facilitating data interpretation and equipping them for challenges.
Improved Data Security
Unprotected data stored in legacy systems or manual records can be easily exploited. ERP solutions keep vital and confidential data safe under tight security and offer selective access through access control.
You May Also Like to Read: ERP for Inventory Management Software – A Detailed Guide Challenges, Features & Cost
Steps to Implement Packaging ERP Software
While an ERP implementation may comprise several parts depending on the nature and needs of the business, there are five crucial steps of a successful packaging ERP software implementation. The standard process includes the following essential steps:
Identifying the Need for ERP Software for the Packaging Business
Before starting the ERP for the packaging industry implementation project, it is important to determine the business requirements and goals. Understanding the pain points and how the ERP will solve them can help in selecting the correct ERP solution.
Selecting the Right ERP System and the ERP Partner
After getting a clear picture of the business scenario, the packaging manufacturers need to choose the right ERP solution with adequate capabilities. Selecting the right ERP partner is also crucial as they can help them get the best solution without exhausting the ERP project’s budget.
Planning the Implementation Process
The ERP vendor helps the packaging manufacturers plan and execute the ERP implementation. The blueprint includes milestones, monitoring frameworks, and corrective action plans. The implementation comprises customisations, integrations and data migration.
Training and Change Management Process
The packaging manufacturers start the change management process in the initial stages of the ERP project. While the ERP partners prepare the ERP for flexible packaging, the company starts staff training. Providing comprehensive training sessions to the employees to be well-acquainted with the system will ensure the system’s success.
Testing the System and Going Live
In the final stage, the ERP system undergoes diagnostic tests to find errors and bugs. The ERP for the packaging industry is launched once it passes all tests.
Future of ERP Software for the Packaging Industry:
The packaging industry is rapidly growing, and there is an urgent need to adopt new-age technologies. A modern ERP helps packaging companies leverage emerging tech trends. The future of ERP software for the packaging industry looks promising. Artificial intelligence, machine learning, predictive analytics, and natural language processing will soon become an integral part of the packaging industry. Here are some future trends in the ERP software for packaging:
Cloud-based ERP
Cloud ERP is delivered over the internet, and packaging companies are rapidly adopting it. Per reports by Businesswire, the cloud ERP market will rise to USD 130 billion by 2027. It helps process standardisation so thought leaders can focus on making and executing growth strategies.
Artificial Intelligence
AI lets manufacturers find accurate insights faster from large datasets. It works in the backend and enhances insight generation, preparing targeted marketing campaigns, data collection, customer relations, user experiences and more. Although previously it was an add-on feature, AI currently comes as an ERP’s built-in capability.
Predictive Analytics and Real-Time Insights
To achieve excellent forecast accuracy, new-age ERP solutions come equipped with real-time data insight and predictive analytics. It helps the companies stay on top of the competitors, fulfil demand and meet gaps in the industry.
Mobile ERP
Remote working culture is a part of all industries, and the packaging sector is no different. Currently, it is one of the top ERP software trends. Mobility helps multinational packaging companies connect with their teams at any time from every corner of the world. Mobile ERPs let the users access their tasks from any device that connects to the internet, such as smartphones, laptops, desktops, smartwatches, etc.
Silver Touch- the Most Trusted Provider of ERP Solutions for the Packaging Industry
Selecting the best-selling ERP for flexible packaging is not enough. Its success depends on the efficiency of the implementation partners. Most ERP implementations fail due to a lack of knowledge, skill or expertise. But selecting the right ERP partner ensures your ERP project is in the right hands.
At Silver Touch Technologies, we have a pool of ERP professionals with strong technical prowess and industrial knowledge about the packaging industry. We offer 360-degree services, including selecting the ERP, data migration, ERP implementation, consultation, employee training and more. Want to know more? Contact us today!
Conclusion
The packaging industry experienced exponential growth in the last decades, and it is destined to proliferate in the future. Using outdated systems and siled data can spell disaster for the business. Now is the right time to move to an intelligent cloud-based ERP for the packaging industry. Such systems grant organisations the power to meet growing demands, access real-time data, and ensure accurate, timely and error-free delivery. Players in the packaging industry who want to position their companies for long-term success are rapidly adopting a dynamic business management tool.
FAQs on ERP for Packaging Industry
Packaging ERP software helps the packaging industry in several ways, including:
- Enhancing communication and collaboration
- Better inventory management
- Precise demand forecasting
- Tracking and monitoring product designs
- Improving production efficiency
