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How an ERP plays a critical role in packaging industry?

1 August 2019 5 MIN READ 1

When it comes to packaging, tech isn’t always the first thing that comes to mind. However, technology over the years has made digitization in this sector possible. There is an intense and growing pressure from consumers, retailers, suppliers, to monitor the quality aspect rightly from every standpoint. Packaging, especially plastic packaging is receiving intense attention worldwide from all Government officials particularly in conserving the environment and recycling. So, there has to be a system in place that monitors every aspect of packaging business especially the quality aspect and stage wise costing in the packaging industry. 

In this blog, we shall uncover as how an enterprise-ready ERP can facilitate your packaging business for the better. 

Auto calculation of scrap based on the stand and actual yield

The system calculates the percentage of scrap that occur during packaging. It also takes into account all the errors and flaws that emerge during packaging cycle or assembling of any products. This makes the entire process easier and enables businesses to calculate scrap based on the stand and actual yield value thus avoiding wastage and maximizing profits.  

Ink Management 

SAP Business One helps to track and report in usage. The software shows exactly how much ink will be consumed on a particular job, allowing for more accurate ink tracking and cost estimation. This ensures the smooth functioning of processes and trouble-free operation. The software takes care of planning and scheduling functions and ensures all the business processes run smoothly without interruption. This allows you to achieve a precise inventory lot quickly and precisely. 

Stage wise costing management  

Evaluating packaging cost is a significant factor in pricing a product. The ERP for packaging plays a critical role as it helps determine the cost of various products such as wrappers, laminates,

boxes, polythene, thermocol, papers and other stuff easily. Packaging of a product is an absolute necessity to ensure that the product reaches to the customers in a safe condition. However, this objective is attained easily with stage wise costing and keeping inventory available at all levels. 

Batch costing Management

The batch costing in SAP Business One automatically records the material issued, scrap, labor, and overhead; and calculates the costs for different batches. This helps to determine the cost of finished goods, track WIP status, finished goods and give you complete knowledge of batch and its cost related.  

This reinstates the fact that SAP Business One facilitates packaging business in one way or the other. It empowers the packaging business to play smarter and mitigate their ongoing business concerns now and then. There are many other aspects of ERP that makes it critical for packaging business such as cylinder management, machine wise process planning, auto alert management, standard scrap percentage evaluation and many other value propositions.   

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About the author

Saajan Sharma

Saajan Sharma is a digital marketer and guest blogger with several years of experience in the industry. He likes to help businesses stay informed and up to date with established and emerging technologies like SAP Business One, IoT, AI, Cloud, and others.

Follow me on LinkedIn to stay updated on the latest industry trends & technology update

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