From training workers to narrow down the skills gap, understanding the economic uncertainties that 2021 brought, and the ever-growing costs of operations are just some challenges facing case packaging companies in 2022.
While undoubtedly, some of these challenges will still hold true, 2023 will bring new opportunities and hurdles to overcome. Before we go into predictions for the future, let's see how the industry has been doing for the last 12 months.
While, inexplicably, the phrase "goblin mode" was chosen as the 2022 Oxford word of the year, in the case packing industry, the word "automation" definitely deserves the top spot.
Many different-sized companies are trying to partially or fully automate their packaging lines. Some are even trying to automate entire warehouses.
We've all seen what the pandemic can do to the supply chain. So it's not surprising that many businesses are looking to automate their operations as quickly as possible to be ready for any potential world-changing event.
The new, fully-automated case packaging robots have built-in computers, allowing operators to program them on the fly. While these machines still need workers to operate and maintain them, they still create substantial savings in labor costs, time, and ultimately the bottom line.
To succeed in business, you need to listen to the consumers. And if there's been anything the last few years have taught us, consumers are demanding more sustainability from companies.
As Forbs reports, here's why the consumers are pushing so hard for sustainability:
Both small companies and large enterprises joined the call for sustainable packaging to meet consumer demands. Many have even developed their sustainability programs, ensuring they are certified to show customers what they are doing.
Of course, this transition wasn't seamless. Some companies committed to switching from plastics to cardboard and paperboard containers. However, the problem with this is that a switch on a major scale would negatively impact the environment in other ways, such as increased emissions from the transportation of heavier packaging materials.
Nonetheless, the commitment to sustainability is only growing stronger, and companies are adapting to the changing demands of their customers.
Finding ways to automate and reduce costs while staying sustainable will remain the top priority for many companies for the next few years. But with every new year, new challenges also arise.
The industry is constantly changing, and case packaging companies must be ready for anything. But with careful analysis, hard work, and a bit of creativity, these four challenges can all be overcome in 2023:
With global supply chains becoming more interconnected than ever before, case packaging companies must find ways to keep up with the influx of last-minute orders.
While last-minute orders generally mean more business - and a better bottom line at the end of the day - they still mean more stress and stricter deadlines.
Typically, the last-minute deadline comes at the end of the day, announced, having to be addressed as soon as possible. While you have less time, your customers' expectations remain the same. They want their orders shipped in the same time frame as usual.
To manage these orders, companies need high-speed machines and an efficient supply chain to handle the additional pressure.
The power dynamic in the packaging industry has shifted dramatically in the last few years. Customers now have more control and are increasingly ordering smaller quantities of items.
A customer can order 20 or 2,000 items, expecting the same level of service. This can become a problem for companies that use machines optimized to fulfill orders in large batches or are used to working with minimum order quantities.
To do this, they must invest in more flexible machines, such as robots and automated systems that can quickly adapt to the customer’s needs.
The employees must also be well-trained to handle more orders in a shorter time. Sometimes, companies may need to hire temporary workers to assist with the additional orders.
The cost of labor, maintenance, and, most importantly, materials is rising. Companies are now expected to produce more, with fewer resources and lower costs.
Since the beginning of the year, the price of raw materials has grown roughly 40%. With the recent European crisis, prices are expected to continue to rise.
Sourcing cost-effective materials like recycled paperboard and corrugated cardboard are one way to offset these rising prices. Investing in new technologies, such as automated systems, can also help reduce costs in the long run.
When working with suppliers, it's important to establish strong relationships and trust. If a company wants to stay competitive in the market, they need the suppliers' expertise, experience, and resources to reach its goals.
A successful manufacturer/supplier partnership model requires a lot of transparency and communication. Companies must ensure that all parties are on the same page and know what to expect from each other.
To migrate risks like increases in material costs or shortages, companies and suppliers need an intuitive way to communicate and exchange data. A secure platform to share and manage information can help both parties stay organized and ensure the success of their joint efforts.
In 2023, case packaging companies will have to work harder and smarter to remain competitive. But with the right strategies and technologies, they can overcome these challenges and win.
With BluePrint Automation, you can transition to robotic packaging machinery for primary, secondary, and end-of-the-line packaging. We offer tailored solutions to help you stay ahead of the competition and capitalize on the ever-evolving industry.
Our expertise and resources can assist you in becoming a more agile and innovative company. Contact us today to learn how we can help you embrace the future of case packaging.
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