Technology for operational efficiency in the packaging industry
On Tuesday, November 24, 2020, at 5pm (Paris time), a webinar was held on the subject of technology for operational efficiency in the packaging industry.
Organized by the PackIOT team, moderated by the excellent Adam Peek and featuring speakers Cristiano WUERZIUS, CEO of PackIOT, Sergei CIACHIR, CEO of Open Packaging Network and our CEO, Thomas OTHAX, it brought together no fewer than 40 manufacturers based all over the world: USA, Latin America, Europe, India, Africa.
The topic: technology for greater operational efficiency for packaging manufacturers
Gaining efficiency in day-to-day operations is an endeavor for everyone in the industry. It's on the menu of every working day.
And yet, new technologies offer new ways of boosting operational performance, because they enable us to solve problems that cannot be solved "humanly", by automating, simplifying and streamlining certain operational tasks. And this applies to every department in the company: marketing, sales, pre-production, quotation, design, production, logistics and even support functions.
The aim of this webinar was to offer an open, relaxed and informal discussion on this topic, and to address a few questions related to the day's theme.
What are the main obstacles to digital transformation digital transformation aimed at greater operational efficiency?
This was the first question posed by Adam Peek during this webinar. If it's accepted that digital tools help to gain operational efficiency, what is it that causes many manufacturers to have reservations and not launch their digital transformation?
Here are some key points suggested by Cristiano WUERZIUS, Sergei CIACHIR and Thomas OTHAX:
- Fear of not mastering new technologies, particularly software and digital tools. In fact, when you're a printer, you may be less apprehensive about integrating new printing technologies, because they involve business expertise, than new technologies for workflow optimization, for example. Paradoxically, they are far more complex to grasp, and require far greater investment than software and other optimization tools. This fear is the first obstacle to change.
- The mindset lacks agility. The packaging industry seems to be one of the most conservative and least accustomed to so-called "agile" processes. Indeed, speakers stressed that implementing new technologies to maximize operational efficiency should not be done in long, costly V-cycles. It is perfectly feasible to proceed in stages, through successive iterations, in order to test solutions in real-life situations as quickly as possible and at the lowest possible cost. This practice, which is not widely used in "traditional" industries, is nonetheless a good way of starting a digital transformation.
- Is the will to change strong enough? The packaging industry, unlike the print industry, is a higher value-added industry. It's more difficult to compare prices, and projects are more complex to develop. The webtoprint wave has not yet hit the packaging industry. But for how much longer? Speakers emphasized the importance of anticipating market evolution, and the generational shift that implies new uses. All agreed on the need for General Management to lead this change in processes and technologies with strength and conviction.
Transparency and data: risk or opportunity or opportunity?
As we all know, the introduction of new technologies is structuring the company around "data"; in other words, data collection and exploitation are becoming key business elements.
But do we really want to know everything, tell everything, be transparent both internally and externally?
Cristiano WUERZIUS, presenting PackIOT's solutions - machine sensors to collect and analyze the performance of machines and machine operators - underlined two important points:
- Gathering information is not a new phenomenon. Many operators have to fill in time sheets "by hand". It's simply tedious and error-prone. A digitized, automatic process, on the other hand, simplifies low value-added data entry.
- Data is passed on to departments (industrial, general), but rarely down to operators. Providing digital tools that enable operators to track their performance, deviations from forecasts and self-assessment is a formidable source of motivation and empowerment.
Thomas OTHAX pointed out that he often hears the remark: "I don't want to display my prices online".
This fear has many consequences:
- Not offering an ecommerce experience is inconceivable today, given that 25% of B2B orders are now placed online, with annual growth of 16% in value!
- opacity on how a price is calculated creates mistrust on the customer's side. They may feel they've been cheated and are paying too much.
When you consider that a B2B buyer is first and foremost a B2C consumer, now accustomed to the use of digital technology and ecommerce, sourcing and comparing prices from a smartphone, always seeking greater transparency from retailers and brands, how can it be any different in its professional relationship with its suppliers?
What are the 2 biggest challenges you face you face when implementing your digital digital solutions?
Our CEO, Thomas Othax, mentioned the "5-legged sheep" excuse and the challenge of knowledge management.
The "5-legged sheep" excuse seems fairly standard in industry to justify a complexity that can only be managed humanly. It's true that in custom manufacturing, complex projects sometimes need to be managed with a specific study. At Packitoo, when HIPE was created, over 7 million data sets in the folding carton converting industry were analyzed, and it emerged that only 20% of the data actually referred to what some call "5-legged sheep". In other words, 80% of the information analyzed corresponded to manufacturing processes that can be understood and apprehended in a digital system, such as HIPE.
Last but not least, the packaging industry is a highly technical one, and very often the trade is learned in-house. Knowing that the generation of "know-it-alls" is closer to retirement than to the beginning of their career, and that the new generation is fickle and doesn't capitalize on long experience within organizations, how can we preserve and share in-house know-how?
Digital tools play their part. It's important to include business know-how, because digital tools don't forget anything, and offer collaborative solutions that simplify knowledge sharing.
In the end, the webinar didn't deal so much with the subject of increased operational efficiency thanks to new technologies, but this open and informal exchange did shed light on resistance to change, and the transparency of data as a new issue, both internally and externally. Further articles and discussions more closely related to the webinar's topic are now worth organizing.