Many business owners seem to think that funding from investors is what they need to master the business operations. Well, It’s true, but it’s also not enough.  

The corrugated packaging industry is projected to reach USD 80.8 billion by 2026, growing at a CAGR of 3.6% (MarketsandMarkets). This growth is driven by increasing demand for e-commerce packaging, rising disposable incomes, and several other factors.

However, with this rapid expansion comes the need for significant operational upgrades and effective workforce management. Moreover, maintaining high levels of customer satisfaction remains critical to staying competitive in this fast-paced environment.

But, Is your business operations capable of handling all these manually? 

Are your current systems capable of meeting the growing expectations for speed, customization, and sustainability?

Let’s understand the importance of efficient operational systems in the corrugated industry in detail. 

Overview of Corrugated Industry:

470 million – that’s the estimated number of online shoppers in India in 2023 (Euromonitor International). 

Now, imagine receiving a package where the packaging style leaves you dissatisfied. Instantly, your trust in the marketplace is questioned, and they risk losing your business.

What’s to blame? Often, it’s the corrugated packaging. 

Whether due to poor raw material sourcing or substandard packaging design, the impact of inadequate packaging extends far beyond just aesthetics. 

It can damage a brand’s reputation and bottom line. 

Now, at all times, first impressions matter more than ever, corrugated packaging plays a pivotal role in ensuring customer satisfaction and brand loyalty.

Understanding Business Workflow in Corrugated Industry: 

The Corrugated Packaging encompasses multiple processes, starting from procurement of raw material to manufacturing, printing and distribution. This may seem simpler, but there are several operational workflow challenges, making it essential for proper systems.

List of Workflows: 

• Raw Material Procurement: The primary material used is kraft paper, which is derived from wood pulp. Sourcing high-quality raw materials at competitive prices is essential for maintaining the integrity and cost-efficiency of the production process.
• Manufacturing Process:

Corrugating: This involves combining linerboard with a corrugated medium (fluted paper) to create the corrugated sheet.

Cutting and Shaping: Once the corrugated sheets are produced, they are cut into the required dimensions, shapes, and folds, which involves die-cutting and slotting processes.

Assembly: The pieces are assembled to form boxes or other packaging structures.

• Customization and Printing: Many customers require custom branding, labels, or product information printed directly onto the packaging. Flexographic printing is the most common method used here.
• Quality Control: Testing for durability, strength, and consistency at various stages of production is vital to ensure that packaging meets industry standards.
• Distribution and Logistics: Packaging needs to be delivered in a timely manner to meet customer demands. This requires efficient inventory management, scheduling, and transportation.

Some Common Challenges in the Corrugated Industry:

Challenges are inevitable in all the industries, but owners in the industry face more problems in their daily operations. They find it difficult to do everything manually  without the use of technology and  some of the common problems are: 

1. Supply Chain Disruptions: Fluctuations in the availability of raw materials, rising costs, and transportation bottlenecks can impact the production process.
2. Inefficient Inventory Management: Overproduction or underproduction of packaging materials due to poor forecasting or demand management can lead to excess stock or delays.
3. Customization Complexity: Handling custom orders (different sizes, designs, printing requirements) can add complexity to the manufacturing process, often leading to bottlenecks.
4. Waste Management: Corrugated manufacturing generates waste, and without a proper recycling system, it leads to inefficiencies and increased costs.
5. Quality Control Issues: Inconsistency in production quality can cause customer dissatisfaction, product returns, or damage to goods during transit.
6. Regulatory Compliance: Compliance with environmental regulations and maintaining sustainability standards adds additional layers of complexity to operations.

Some of the problems are in control with manual efficient operations but most of the other problems can be reduced with the use of technology in their workflow on a daily basis.

Functional Systems role in reducing Problems in Corrugated Industry:

Development of technology doesn’t make you lose your job, but without upgradation it’s hard to be in this competitive industry.

Inclusion of systems is mandatory in the upcoming decade to be in a good position, let’s understand its functional efficiencies. 

ERP Systems for Process Automation and Optimization:

• Streamlined Operations: An Enterprise Resource Planning (ERP) system can automate and integrate the various functions, including procurement, manufacturing, and distribution, ensuring seamless communication between departments.
• Inventory Management: ERP systems enable real-time monitoring of inventory levels, predicting when new materials need to be ordered, reducing overstocking or stockouts.
• Demand Forecasting: Using past data, ERPs can help predict future demand, allowing manufacturers to optimise production schedules and reduce waste.
• Customization Handling: The system can manage custom orders more effectively, tracking specifications and managing printing requirements, reducing errors and delays.

 Most of the common problems are managed with ERP systems in this Industry and yet choosing the best ERP in place holds the major concern for business owners. 

How Does PPTS CBS Automate Operational Processes Effectively?

PPTS CBS enables companies to efficiently manage and track critical processes such as production planning, inventory management, sales and customer relationship management, finance and accounting, and supply chain management. Some of the advantages of the system are as follows, 

• Controlled product management
• Automated board grade management
• Automated & smart BOM (Bill of Materials) routing for WIP (Work in Progress) and FG (Finished Goods) products
• Combination matrix based on variants for quick view of on-hand quantities
• Ideal support for trim optimization
• Seamless delivery process
• Multi-level quality controls
• Batch management
• Machine & production routing customization
• Logistics routing
• Integration with other systems. 

By leveraging PPTS CBS, corrugated packaging manufacturers can enhance productivity, improve operational efficiency, reduce costs, and make more informed business decisions based on real-time data and analytics.