Why the Packaging Industry Needs to Embrace Digital Transformation (without further delay)
Why the Packaging Industry Needs to Embrace Digital Transformation (without further delay)
Think of the packaging industry and the ever-flourishing retail sector; you can’t imagine one without the other.
Now, think of the United States and you have one of the fastest-growing packaging markets in North America, with the market size estimated at a whopping USD 200.98 billion in 2024 (Mordor Intelligence Report).
Like any other industry, the packaging industry must evolve and innovate to stay competitive and adapt to ever-changing buyers’ preferences. Also, there’s a pressing need for businesses to embrace eco-friendly practices in the form of reduced paper, plastic, and water usage.
To promote sustainability, industries across the globe are shifting from “traditional” ways of operating to comprehensive “digitalization”, aimed at achieving more efficiency and accuracy while contributing to environmental conservation.
There’s a strong reason why 91% of businesses are engaged in some form of digital initiative today (Gartner).
So, let’s discuss digital transformation and how it has become the need of the hour for the packaging industry.
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What is Digital Transformation?
Digital transformation can be defined as a comprehensive process of incorporating digital technologies into your existing business operations that may include outdated legacy systems or manual, paper-based processes.
Digital transformation aims to make business processes more efficient while delivering value to customers and gaining a competitive advantage in today’s dynamic business environment.
That said, migrating to new-age digital solutions requires organizations to discard long-standing business processes in favor of the latest technologies introduced in the market.
“Digital is a loaded word that means many things to many people.”- Jim Swanson, CIO of Johnson & Johnson |
Why is Digitalization Crucial for the Packaging Industry?
With so many companies across various industries ramping up their “digital game”, how can the packaging industry afford to stay behind?
Business owners are under pressure to improve product cycle times, improve product quality, and keep up with the latest trends in the market.
To stay in the race or competitive game, embracing digitalization is crucial for the packaging industry.
Let’s dig deeper and look at the reasons behind digital transformation gaining widespread implementation across the packaging industry worldwide.
Reduces Waste
Digitalization is among the most effective tools for minimizing waste in the packaging industry. At times, different teams involved in the packaging design operate in silos and are not connected, which can lead to artwork mistakes.
Digitalization enhances team collaboration, which further encourages transparency and plugs information loopholes. Everyone on the same page helps to increase efficiency and accuracy in packaging design, which minimizes the chances of product recalls.
Increases Equipment Uptime
In the manufacturing industry, the average cost of downtime is about $260,000 per hour.
Digital technology in the packaging industry helps businesses with preventive maintenance that provides instant and accurate real-time equipment servicing history and output figures. Operators can identify potential problems and fix them before they occur, leading to prolonged equipment life and optimized uptime.
Improves Operational Efficiency
One of the major advantages of digitalization in the packaging industry is significantly improved operational efficiency. Cloud-based digital solutions, like the Internet of Things (IoT), provide easily accessible real-time equipment health insights to users, which facilitates informed decision-making.
Machine operators can use digital solutions to schedule repair and maintenance programs to ensure maximum uptime, employee productivity, and optimal product quality.
| Global spending on digital transformation can reach $1.8 trillion by the end of 2022 |
Smart Packaging for Enhanced Customer Experience
Smart packaging technologies involve QR codes, scanners, or NFC chips (Near Field Communication) that provide vital product information and connect the customer and the brand. This information educates customers about the product and helps them understand whether it meets their expectations.
Also, smart packaging encourages transparency and helps to establish “trust” between customers and brands while boosting consumer engagement.
Workflow Automation
Workflow Automation helps businesses move away from paper and manual processes, which brings more clarity and efficiency to their unique operational processes. Digital workflow automation predefines all the steps and procedures required to perform specific tasks.
Automating crucial processes helps businesses in the packaging industry save time on repetitive tasks while significantly reducing manual errors and overhead costs.
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The Final Word
Digital transformation can help packaging companies improve their bottom line through streamlined, automated, and efficient daily operations. That said, the term “digitalization” is not a one-size-fits-all approach for every business operating in the packaging industry.
Each business has its challenges and pain points that need to be addressed through unique digital solutions. Therefore, you need to contact an expert technology partner company like Bursys that can analyze your requirements to come up with customized, on-demand digital solutions to propel your business forward while gaining a competitive edge over your competitors.