How Will Digital Transformation Evolve The Packaging Industry In 2024?

Can you think of one sector where there have been no technological upgrades? From the perspective of B2B or B2C, major sectors have adopted a massive automation drive. Well, why would the packaging industry be left behind? Plus, digital transformation has only improved customer connectivity and service over time. 

Most packaging industries are adapting to data exchange, tech solutions, and business process automation. Also, with real-time data access, companies can make informed decisions. 

Let’s dive deep and talk about trends and the impact of digital transformation in the packaging industry. 

Current Trends Observed in the Packaging Industry

• The demand for customisation of branding materials for packaging purposes has increased. 
• With rising e-commerce buying trends, there has been a change in consumer behaviour.
• To establish real-time data exchange, there is a need to break silos. 
• There is a rising trend in the print-on-demand business model with an increase in agile production capacity.
• Increase demand for better-integrated solutions such as packaging demand software processes, digitalisation, and order management systems. 
• Increase in the need for sustainable packaging products. 

Impact of Digital Transformation on the Packaging Industry

Efficiency and Process Automation

Agile approach and adoption of collab industry value chain 

There is no integrated system in the packaging industry, which makes things difficult at a higher level. Moreover, companies that rely on new digital solutions face errors with orders. 

At times, these tech solutions may act as silos without cyber-physical solutions. However, AI technology can help break the silos, providing an integrated digital ecosystem for data exchange. 

Automation in order management 

Automation increases transparency and flexibility in the packaging industry, especially with order management systems. As packaging is a B2B industry, managing orders online can be complex. With an automated order management system, customers can track their orders and timelines, leaving no chance of errors. 

Sustainability and Emphasis on Waste Management in Production

Sustainability

With climate change or purchasing power, sustainability has become a powerful tool for most brands. Today, most companies adopt a sustainable approach to stay in business. 

The food industry, eCommerce, and luxury brands have shifted to sustainable packaging. Plus, incorporating sustainable packaging is the need of the hour. 

That’s why the demand for sustainable packaging has increased over time. 

However, the packaging industry needs IoT, IIoT, and cognitive technologies to cut waste in the production part and pitch a minimal-waste product to consumers. 

Data analytics and remote monitoring for waste management 

Most packaging industries face the issue of data-driven decision-making capabilities. However, with automation and job workflows, they can optimise equipment performance, reduce unexpected downtime, and increase productivity and remote monitoring. 

In addition, integrated systems can facilitate data exchange between stakeholders. Automation can also help in policy framing with data-driven decisions. 

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Digitalisation for Customer Service

Customisation in the packaging industry 

Customisation has become the backbone of the customer service industry. With an increase in brand significance, there will be a change in how it is adopted. 

Ideally, social media trends and customers have made packaging a vital aspect of branding. For instance, there is a trend for unboxing followed by most influencers, increasing the need for attractive packaging. 

Apart from the packaging, marketers are using better packaging materials to communicate their brand message with potential customers. Most companies integrate QR codes to connect with customers. 

Because of packaging trends, the need for customisation has increased, which is why the industry has a high demand for design software for packaging. 

The best part is that the package design tool can digitise the product design process. Also, Design software helps to optimise the design process. With the help of print-on-demand, you can improve the design cycle, ensuring faster go-to-market with limited resources. It empowers end-customers to design their packaging and choose bulk print orders. 

Artificial intelligence for packaging and product offering 

The customization trend has picked up in business processes, so it’s not a trend followed by only the packaging industry. Customers are more than willing to share their data for personalised recommendations and suggestions.

Even companies are adopting cognitive technologies and artificial intelligence for customer service to enhance the customer experience. With the integration of AI, companies can provide better products and optimise sales. Ideally, automated marketing is also one advantage of using the technology.

Downtime Limit

Digital technology in the packaging industry can reduce machine outages, thanks to the IoT sensors that gather information on machine health. 

Using the technology can provide information about machines, which prevents downtime. Beyond this, you can use smart sensors in a pneumatic packaging machine to keep track of different variables, pressure, and airflow. 

More so, even people with limited knowledge can obtain real-time data to make the right decisions. Once the error is detected, you can switch from routine maintenance to predictive maintenance. 

Wrapping up

Like any other industry, digital technology can enhance the packaging industry. However, the way companies use the technology is significant. 

Also, incorporating a suitable technology into the workflow depends on long-term objectives. You can keep track of progress depending on the workflow. The most significant factor is how much money can be spent on such upgrades. Also, before integrating with the technology, consider the equipment location to maximise safety and productive output.

Lastly, consider the need to invest in packaging technology to make a profitable return on investment. 

Author’s Bio:

Harikrishna Kundariya is the Co-founder, Director, & Marketer of eSparkBiz Technologies – an excellent Software Development Company. Also, a notable IoT, ChatBot & Blockchain-savvy Developer.