The Digitalization of Packaging
This week we launch the results from our FuturePrint & Pack Survey in partnership with Ricoh. On October 14, we host a special webinar to feature some of the results, if you would like to attend register here - every delegate will get a copy of the PDF report.
But why is this report so important right now?
The packaging sector according to many sources, has continued to grow during the last 18 months despite the impact of COVID. But this is not to say that the crisis has had no adverse impact at all. As we approach the sectors busiest season, reports of several combining factors are causing problems up and down the supply chain. This demonstrates that there remain many supply chain problems that the huge packaging sector continues to be challenged by. These are unlikely to go away anytime soon. There are shortages of resources, due in part to spikes in demand caused by changes in buying behaviour, online retail growth, supply problems due to a lack of people to drive HGV’s, rise in energy costs and shortages of CO2, and for the UK, the impact of Brexit.
Back in March of this year, Supply Chain Management reported that DS Smith, one of the largest packaging converters in the UK said “online shopping and lockdowns had created more home deliveries but householders were running out of space to recycle cardboard. Recycled cardboard is needed to make packaging. DS Smith said research showed half of UK households (49%) ran out of room in recycling bins, with a quarter saying this happened every two weeks or more frequently.
More recently, Nestle sent out warnings that they are challenged by shortages for the supply of their famous brands in the run-up to Christmas. There is also the fallout from Europe’s energy crisis is also ending fresh shockwaves through the U.K. food sector, after online grocer, Ocado Group Plc stopped supplying frozen products to customers and the meat industry warned that businesses could “grind to a halt” within two weeks.
The latest shock to the industry comes from a sudden shortage of carbon dioxide, used to stun pigs and chickens for slaughter, as well as in packaging to extend shelf life and the ‘dry ice’ that keeps freezer items frozen during delivery. Now, disruption to carbon dioxide supplies is adding to the pressure. The British Meat Processors Association warned that CO2 supplies could run out within two weeks, forcing slaughterhouses to close.
While some of these issues may be felt more in the UK, it is clear that disruption continues in packaging across the world. Many respondents to this survey believe that the solution is digitalization which affords more control for the producer at locations closer to the customer while adding flexibility, efficiency, agility and responsiveness into production to meet demands and avoid challenges that remain out of anyone’s control.
But what is Digitalization?
According to Gartner: “Digitalization is the use of digital technologies to change a business model and provide new revenue and value-producing opportunities; it is the process of moving to a digital business.”
Respondents to this survey are bullish about the future and that the need for digital solutions has risen far higher up the agenda than before COVID. Faced with challenges impossible to predict and that are fast-moving, digital technology is being given greater focus due to necessity. Digitalization, and in particular digital inkjet technology is now needed to enable the packaging sector to meet the challenges of today. Digital technology will enable production to meet the challenges of tomorrow and the Net Zero targets that have become even more important to achieve. The pressure is on, and the digital inkjet technology is primed, ready and willing to help.
Register here for the FREE Oct 14 Webinar
Sources:
https://www.gartner.com/en/information-technology/glossary/digitalization