Did you know that supply chain emissions are, on average, 5.5 times higher than emissions from direct operations? In other words, for the average company, the emissions of the supplier ecosystem are equal to the emissions of their own offices and facilities. more than five times the Consumers are becoming more aware of sustainability issues impacting the planet and are looking to companies that produce more sustainably produced products. Investors are also choosing companies that put sustainability first to help meet consumer demand and comply with government pressure to tighten environmental regulations. For companies such as consumer brands, being “green” is becoming an increasingly integral part of how they do business.
Contract packagers and manufacturers have a strategic role in minimizing waste in the upstream supply chain and what materials and inventories are in the system to avoid inefficiencies and waste. must be accurately understood.
a A recent report called PMMI Business Intelligence Report 2022 Shaping the future of the packaging business, further showed that “Packagers are aware that they are somewhat behind when it comes to sustainability, and they recognize that they need to catch up. But true industry shifts require technological breakthroughs…”
To maintain profitable efficiency in a tight market while offering higher service standards to brand customers, co-packers are moving from investigating new ways to drive more efficient and sustainable operations. Need to get more..
However, achieving more efficient operations to reduce waste requires increased visibility, efficiency, and collaboration with customers, and a purpose-built digital platform provides such value for these businesses. Here’s what you can do.
- Increase visibility and control on the shop floor:
Digitization with a cloud-based software platform enables co-packers and leading consumer goods companies to accelerate time to market and significantly increase visibility across their operations. By knowing exactly what inventory levels and order requirements exist, users can maximize the efficiency of their packing operations and significantly reduce waste due to issues such as excess inventory, fast delivery, and unused inventory, resulting in more We can provide good service.
2. Enhance collaboration and communication with customers:
Real-time visibility of the production floor using a platform purpose-built for contract packaging operations enables companies to significantly reduce the lag time of production status updates and to notify partners of potential order disruptions and opportunities. increase. Response time to those events.
In addition, a central data platform for co-packers can create a single source of truth about order and inventory status, allowing businesses to work more quickly, clearly and effectively with their brand customers, ensuring greater visibility between all parties. You can build relationships and strengthen trust. .
Ultimately, improved responsiveness and collaboration reduces wasted time and material obsolescence caused by inefficient actions to meet supply chain and demand-related order disruptions. Far beyond their own boundaries, organizations work together (with customers and suppliers) to eliminate the “bullwhip effect” and reduce the impact of supply chain disruptions by synchronizing end-to-end supply chains.
3. Maximize Labor Efficiency:
The digitization of manufacturing sites also eases constraints caused by labor and skill shortages. Between the “great retirement” and the “gray wave” of retirement, companies that digitize their operations will remain productive regardless of the workforce in which they operate.Digitization result It gives co-packers visibility, control and agility while enabling standardized processing, data collaboration and increased efficiency.
In addition, co-packers can prepare for disruptions and surges in demand by using the latest technology to future-proof their operational workflows. These organizations become the ‘supplier of choice’ with more efficient, profitable and sustainable operations.
Copacking Digitization
Efficiency is the key to reducing supply chain waste while maximizing profitability. From providing live access and updates during production, to easy identification and segregation of inventory, or the ability to ensure all components are available in each bill of materials, copacking software minimizes operational waste. limit and maximize overall resource efficiency. work.
Digitizing the shop floor also provides visibility and tools to help contract packaging and manufacturers further reduce their impact by enhancing their ability to manage materials and inventory. Cloud-based software solutions are already creating value, meeting brand and consumer demands for greater sustainability, helping companies innovate and eliminate waste in growing parts of their global supply chains. continue to enable
By enabling data automation on the shop floor, co-packers can leverage improved collaboration with partners, achieve improvements across their businesses, and empower brand customers through more efficient, leaner operations. Helps provide value.
Author biography
Jason Tham is the co-founder of Kellogg’s Packaging, a highly automated manufacturing facility, and is involved in R&D, manufacturing and quality control at Magna International. He graduated with his Bachelor’s degree (Hons). and CEO of Nulogy. Jason brings experience in continuous improvement and management science options from the University of Waterloo.
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