ERP Systems in Packaging: Why It’s Time to Think Beyond Traditional Solutions
While regulatory changes happen rapidly and collaboration is crucial, many IT leaders still believe that their Enterprise Resource Planning (ERP) systems are the answer to everything. While ERP solutions for packaging do exist, this mindset creates significant barriers for packaging, marketing, and supply chain leaders who are left without effective solutions. ERPs are undoubtedly powerful tools for managing core business processes, but they fall short when it comes to handling the specific and dynamic needs of packaging data. If you’re a packaging leader, a marketing manager, or a supply chain professional frustrated by the lack of tailored solutions, this article is for you. Here’s why relying on ERPs for packaging data management is a limitation that could be holding your company back:
ERP Systems Are Not Built for Packaging Data
ERPs are designed to handle broad business functions—finance, HR, inventory, supply chain, and the like. They excel at integrating these functions into a single system, but they were never designed with packaging in mind. Packaging data is unique: it requires detailed specifications, artwork management, compliance tracking, and an ability to adapt quickly to industry changes. Traditional ERP systems are not equipped to handle the granular, highly specialised data that packaging demands.
Lack of Adaptability for Packaging Needs
Even when companies attempt to adapt their ERP systems to include packaging data, they often find themselves bogged down by the need for extensive development and significant investment. Customising an ERP to manage packaging data involves complex coding, prolonged development cycles, and ongoing maintenance—none of which are cost-effective or efficient.
The consumer packaged goods industry is facing constant change, particularly in regulatory requirements. ERPs, with their rigid structures and lengthy update processes, simply cannot keep pace. ERP modification takes considerable time. By then, another change may have already occurred, leaving companies perpetually playing catch-up.
Limited Collaboration Capabilities
One of the most significant drawbacks of using ERP systems for packaging is their inability to facilitate effective collaboration. This impacts both internally and with external partners. Packaging projects often require close collaboration between various departments. Design, marketing, and compliance, as well as external studios involved in design and artwork. On top of that, some of the stakeholders who need access to packaging data the most are supply chain partners. Retailers must also report under EPR regulations.
ERPs typically operate as closed systems where only internal stakeholders can input and access data. This lack of external collaboration capability is a severe limitation. For example, if a packaging manufacturer needs to provide data or updates directly into the system, they are unable to do so, leading to communication bottlenecks and potential errors.
Inability to Keep Pace with Regulatory Changes
The packaging industry is under constant pressure to comply with a growing array of regulations. Each is more complex than the last. From Extended Producer Responsibility (EPR) in the UK and across the EU to state-specific packaging laws in the U.S., companies must be agile in their responses. ERPs, with their cumbersome update processes, are not equipped to handle the pace of regulatory shifts. This can leave companies at risk of non-compliance. It may lead to fines, product recalls, or worse, damage to brand reputation.
The 4Pack Advantage: A Solution Designed for a complex set of challenges
Unlike ERP systems, 4Pack is built specifically for CPG and F&B businesses. These face significant packaging challenges every day, across multiple divisions, and geographies. It offers a solution that integrates seamlessly with existing processes. While providing the flexibility and collaboration capabilities that packaging demands. With 4Pack, you can:
- Manage Packaging Specifications and Artwork: Keep packaging data centralised, accurate, and up-to-date. Without the need for extensive customisation or development work.
- Adapt to Regulatory Changes Quickly: 4Pack is designed to be flexible, allowing you to update and manage data in real-time, ensuring compliance with the latest regulations.
- Facilitate Collaboration Across the Supply Chain: Enable third-party manufacturers and suppliers to input data directly into the system. Then everyone can work from the same source of truth.
ERP systems are invaluable for many business processes. But, they fall short when it comes to the specialised needs of packaging data management. 4Pack is a purpose-built solution that address these limitations and needs, providing agility, collaboration, and compliance support.
