Limitations of ERP Systems in Packaging - 4Pack
Limitations of ERP Systems in Packaging

Limitations of 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. 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.

Additionally, the packaging industry is characterised by rapid changes, particularly in regulatory requirements. ERPs, with their rigid structures and lengthy update processes, simply cannot keep pace. By the time an ERP system is modified to meet a new regulation, 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—both internally and with external partners. Packaging projects often require close collaboration between various departments, such as 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 key supply chain partners, who also have to report under ERP systems.

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 more complex than the last. From Extended Producer Responsibility (EPR) requirements in the UK and across the EU to state-specific packaging laws in the U.S., companies must be agile in their response to these changes. 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, leading 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 the CPG and F&B businesses who have significant packaging challenges to face every day – across multiple SKUs, divisions, and geographies, offering a solution that integrates seamlessly with your existing processes while providing the flexibility and collaboration capabilities that packaging demands. With 4Pack, you can:

  • Manage Packaging Specifications and Artwork: Keep all your 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, ensuring everyone is working from the same source of truth and minimising errors.

While ERP systems are invaluable for many business processes, they fall short when it comes to the specialised needs of packaging data management. 4Pack offers purpose-built solutions that address these limitations and needs, providing agility, collaboration, and compliance support to do business better.

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