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ERP and the Evolution of Packaging

Posted on 18 November 2014 by Meryl Malcomess

meryl_the_evolution_of_packagingOptimizing supply chain processes is essential for managing a business in the midst of a changing industry. A dynamic industry dictates that companies must re-evaluate their processes with a focus on operational efficiencies and strategic use of technology.  

This is where it is imperative for enterprise resource planning (ERP) software to step in. 

The packing industry in particular is characterized by constantly changing market conditions, technological advancements, relentless competitive pressure, seasonal and regional variations as well as fluctuating costs for both raw materials and business operations.  

Evolving pressure 

Packaging manufacturers in particular face challenges such as creating packaging for perishable goods going to regions around the world with varying climatic conditions and regulatory standards.  

Add to that the pressure of protecting the environment both in the manufacturing of products and the recycling thereof, and you can start to get a glimpse of the multifaceted nature of this sector. 

Businesses in the packaging industry are under immense pressure to stay at the top of their game. They need to have a firm grip on every single process in their operation while remaining flexible enough to shift their strategy and outputs at any given time. 

 

Software catalyst 

ERP is a valuable asset for companies that need a highly detailed and dynamic business process modelling instrument. It can assist them in fully understanding every aspect of their business – giving the necessary perspective required to know where there is room for change and improvement.  

It is essential for companies in the packaging industry to choose a software solution that has the ability to both support and catalyze their evolution. 

SYSPRO has more than a decade of experience in providing comprehensive, custom ERP solutions to companies across multiple verticals, including the packaging industry - offering full traceability of materials throughout the supply chain from purchase and inspection right through to manufacturing, stocking, sales and delivery. 

Packaging proof 

Customers around the globe have used the SYSPRO solution to fine-tune their packaging operations. For example, manufacturer of steel and plastic strapping in the USA, Samuel Strapping Systems , successfully reduced its inventories by $2 million while still meeting customer demand. 

Illustrating the impact of ERP implementation on a business, Samuel Strapping implemented  Material  Requirements Planning (MRP) using SYSPRO’s Requirements Planning software [http://www.syspro.com/product/requirements-planning] in one of its two plastic plants and did a comparison of the operational efficiencies of both plants. The plant using Requirements Planning was better able to maintain inventory levels and meet customer demands despite fluctuations. 

In another example, packaging company, Bags and Boxes II (BBII), has seen a significant jump in productivity after implementing SYSPRO across its operations. The company has been through three system upgrades and has recorded a marked improvement in productivity after each subsequent upgrade. Its sales order turnaround time has been halved and average inventory is significantly lower than before – primarily due to the ease of purchasing through the system.  

 What these examples illustrate is clear – choosing an ERP solution that fully understands the unique demands and fluctuations of the industry can help packaging companies position themselves at the forefront of innovation and productivity. 

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Topics: ERP systems, Supply Chain Management


Meryl Malcomess

Meryl is Managing Director: SYSPRO Africa. She has been with SYSPRO for more than 18 years and is involved in determining the strategic direction of its marketing activities.

By the age of 21 Meryl became both the first female and the youngest Financial Manager at a large financial company. Since her early beginnings, she has accumulated experience in commodities and advertising sectors, including a stint running a trucking and airfreight business.

Meryl consistently achieves success by monitoring market forces, including customer behavior patterns and trends highlighted by industry analysts. She also liaises closely with SYSPRO group marketers world-wide.

 

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