{"id":9890,"date":"2021-11-23T08:58:27","date_gmt":"2021-11-23T16:58:27","guid":{"rendered":"https:\/\/www.qad.com\/blog\/?p=9890"},"modified":"2021-12-10T14:10:45","modified_gmt":"2021-12-10T22:10:45","slug":"digital-manufacturing-for-the-packaging-industry","status":"publish","type":"post","link":"https:\/\/www.qad.com\/blog\/2021\/11\/digital-manufacturing-for-the-packaging-industry","title":{"rendered":"Digital Manufacturing for the Packaging Industry"},"content":{"rendered":"<p>[vc_row][vc_column][vc_single_image image=&#8221;9891&#8243; img_size=&#8221;full&#8221;][vc_column_text]<span style=\"font-weight: 400;\">During our next installment of <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/tomorrow-namer\" rel=\"noopener\"><span style=\"font-weight: 400;\">QAD Tomorrow<\/span><\/a><span style=\"font-weight: 400;\"> on December 1, 2021, we\u2019ll focus on how manufacturers adopting digital solutions are future proofing their operations. For the packaging industry, digital manufacturing solutions must help manufacturers produce the right stuff at the right time as optimally as possible and then support the decisions of what to produce next. Simplistically speaking, that might boil down to three sets of information: material availability, equipment\/labor status, and the up-to-date order priority in context with all the possibilities.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Having real-time information, or \u201cone version of the truth,\u201d across all relevant departments about materials, equipment\/labor and order priority is critical for strategic decision-making. Digital manufacturing solutions share real-time <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2021\/04\/data-is-the-new-gold\" rel=\"noopener\"><span style=\"font-weight: 400;\">data<\/span><\/a><span style=\"font-weight: 400;\"> and integrate all departments, from planning and scheduling to quality and shop floor control, to reduce costs, achieve good quality and deliver exceptional customer experiences. The ability to plan, execute, monitor and adapt is improved by digital solutions.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Challenges Facing Packagers<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The reality in the <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/industries\/packaging\" rel=\"noopener\"><span style=\"font-weight: 400;\">packaging<\/span><\/a><span style=\"font-weight: 400;\"> industry is often this: the planning department has a view of what needs to happen on the factory floor to satisfy demand around the current customer and channel priorities. The operations department has that same view, however, it often gets lost in a spreadsheet that is only updated once a week during a meeting. Technology and the adoption of<\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/digital-transformation\" rel=\"noopener\"> <span style=\"font-weight: 400;\">digital transformation<\/span><\/a><span style=\"font-weight: 400;\"> mean decisions are based on reality and facts \u2013 \u201cone version of the truth\u201d \u2013 rather than gut feelings or doing what was always done in the past.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Outdated legacy solutions create stumbling blocks for manufacturers seeking optimal decision-making. So often they have competing versions of \u201cthe truth\u201d. For example, material status and inventory levels are only available from a disconnected warehouse system. Manual processes for recording equipment status and active order status on paper documents occur at the end of the day or shift rather than in real time. Spreadsheets are only updated for the weekly production meetings and don\u2019t reflect the changing priorities. The results?<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Wasted resources prepping machinery and labor without the necessary raw materials or components<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Way too much work in progress inventory<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Over or under production of orders that don\u2019t really line up with customer needs<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">As we\u2019ve written before,<\/span> <a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2021\/09\/disruption-is-nothing-new-for-packaging-manufacturers\" rel=\"noopener\"><span style=\"font-weight: 400;\">disruption is nothing new<\/span><\/a><span style=\"font-weight: 400;\"> for the packaging industry. Packaging manufacturers are expected to be innovative with new and customized product offerings while being sustainable and able to customize quickly. Even without the pandemic, the packaging industry faces a constant flood of new SKUs, a strong demand for sustainability that can overwhelm supply chain resources and logistics, storage and transportation issues, and the whimsy of customer demands and fads. By investing in digital solutions, packaging manufacturers can improve information flows and real-time data, promote collaboration and achieve better decision-making. Digital connectivity equals real-time visibility of every piece of manufacturing operations, from inventory and incoming shipments to production, finished product inventory and outgoing shipments.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">A Good Time to Be in Packaging<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Despite the constant challenges the industry is accustomed to facing, now is an excellent time to be in the packaging industry. Demand is constant and those manufacturers with sufficient capacity can respond favorably to the demand. Also, the industry has seen a recent trend of being able to pass along price hikes from packaging made of high-priced oil-based materials to consumers \u2013 not always the case in the past.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In their<\/span><a target=\"_blank\" href=\"https:\/\/www.capstonepartners.com\/insights\/packaging-october-2021\/\" rel=\"noopener\"> <span style=\"font-weight: 400;\">Packaging Industry Update for October 2021<\/span><\/a><span style=\"font-weight: 400;\">, Capstone Partners investment banking firm projects that packaging manufacturers will continue to experience strong demand from consumer online shopping, rising per capita income and growing industrial production. At the same time, those packaging manufacturers serving certain market segments or developing sustainable solutions will continue to attract buyer interest, further fueling significant merger and acquisition activity in the industry.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">What\u2019s Next?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">To ride the wave of success the packaging industry is currently enjoying, manufacturers need to look to digital transformation, which not only provides \u201cone version of the truth\u201d but also optimizes decision-making and future planning. For asset-rich packaging manufacturers, the goal is to have aligned operations, using the right balance of resources, energy and labor.<\/span><\/p>\n<p><b>To learn more about the benefits of digital manufacturing, register for<\/b><a target=\"_blank\" href=\"https:\/\/www.qad.com\/tomorrow-namer\" rel=\"noopener\"><b> QAD Tomorrow: A Digital Manufacturing Broadcast<\/b><\/a><b> on December 1, 2021.<\/b>[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[vc_row][vc_column][vc_single_image image=&#8221;9891&#8243; img_size=&#8221;full&#8221;][vc_column_text]During our next installment of QAD Tomorrow on December 1, 2021, we\u2019ll focus on how manufacturers adopting digital solutions are future proofing their operations. For the packaging industry, digital manufacturing solutions must help manufacturers produce the right stuff at the right time as optimally as possible and then support the decisions of what [&hellip;]<\/p>\n","protected":false},"author":20,"featured_media":9891,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[182,197],"tags":[],"class_list":["post-9890","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-innovation-and-technology"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Digital Manufacturing for the Packaging Industry | QAD Blog<\/title>\n<meta name=\"description\" content=\"Digital manufacturing solutions can help packaging manufacturers promote collaboration, improve information flow &amp; optimize decision-making.\" \/>\n<meta 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