ERP packaging industry what is? The analysis ERP important & selection criteria

As practice shows, many enterprises packaging still operated by Excel or other software, discrete, causing data scatter difficult to control cost, according to each order. The lack of accurate information about prices, inventory, as well as production capacity in business, slow response to market volatility, increasing risk, single hole, delay progress, and use resources less efficiently.

In the content below Lac Viet Computing will analyze in detail the peculiarities administration of the packaging industry, the analysis ERP core along the actual benefits that ERP brings to the business manufacturing packaging in the process of converting numbers.

1. ERP packaging industry what is?

1.1. The concept of erp system packaging

ERP packaging industry is system resource planning business (Enterprise Resource Planning) is built to solve the problem operate the peculiarities of business manufacturing packaging. This includes the type of packaging, paper, carton, plastic, flexible packaging and packaged products related.

Speaking in an understandable way, ERP is a software master help link business activities, as well as the production on a data platform sole. When deployed in the packaging industry, this system not only data management, but also connected, coordination of operational processes, from production scheduling to progress tracking, materials management, reports business results.

With the packaging industry, ERP should be designed for models produced according to the order in which each unit can differ in size, material, technical request. This creates the particular requirements that the management software, common, difficult to meet, if not in depth customization.

The difference compared with the ERP common:

Thus, the erp system packaging not only the tools, data storage, which is the solution to help businesses understand the costs of production capacity, as well as the ability to meet the market every order.

1.2. ERP industry, other packaging nothing compared to software management discrete?

In fact operate in many business packaging production, the management by Excel or software single still popular. Each department can use a tool private: accounting use accounting software, storage management tools, inventory, production, use Excel or software private function. This leads to the condition:

• Data inconsistency between the parts
• False data, duplicate work
• Information doesn't update in real-time, make decisions slow response with fluctuations
• Difficult to track overall progress orders

In contrast, the erp system packaging packaging operation according to the principle:

• Data focus: all information related to orders, raw materials, production, inventory, sales and finance are stored on a common database.
• Updates real-time: as a parts change plan (for example, adjust the levels for paper order), the system automatically updates the related data in other modules.
• Contact information the entire process: from stage bid, production planning, inventory control to financial statements.

Illustrative example: When the business re-adjust the level of paper for a single, specific row, instead of having to update this data in multiple worksheets or different software, ERP system will:

• Automatic recalculation needs to buy raw materials according to the new norm
• Update the cost price of your expected order
• Immediately reflected on the report management, production planning, general

This allows the leaders and the parts related decisions quickly and accurately based on actual data, not estimated or collated manually.

2. Peculiarities of governance makes the packaging industry really need ERP

With specially produced many variations according to orders, process control craft no longer fit. So, ERP, packaging industry has become the solution required for businesses to operate efficiently as well as good cost control.

2.1. Materials management complex, volatile prices strong

In the production of packaging, cost of raw materials such as paper, plastic film, laminating, printing inks accounts for a large proportion and sharp fluctuations in the market. If the business is still managed by Excel or software, discrete, plans, prices, as well as the price easy to quickly obsolete. As a consequence, quotes, teen, exactly, the profit margin practical difference compared with the original estimate.

An ERP system packaging helps to link data from:

• Forecast the demand for raw materials based on production plan
• The number of existing inventory
• Purchase orders are open, forming a picture only data and updates in real time.

This helps decrease the risk of price fluctuations of raw materials, improve the ability to maintain cash flow as well as control operating costs.

2.2. Production according to orders, many versions – way rules

Other with mass production, the packaging industry, most manufacture “under orders”. This means the same products, packaging may differ:

• Size
• Material
• Ask printing or surface treatment according to customer's requirement.

If management by manual methods or software discrete business to meet the following issues:

• The level of use of raw materials is discrepancy between the unit.
• Production schedule delay due to information transfer slow.
• Difficult to determine the cause when an order is anal.

Meanwhile, the erp software industry packaging has the ability to:

• Standardized product information according to each specification,
• Tracking orders as a “project of the independent production” with the private
• Automatically update the production plan when there are changes.

This approach help businesses reduce errors and improve the delivery schedule, and improve reliability with customers, thereby creating competitive advantage sustainable in the market.

2.3. Hard to control prices & waste

In the production process packaging there are many stages in a row, from printing – laminating – cutting – paste to the finishing packaging. At each step are incurring costs, the ability to wastage of raw materials.

 For example:

• Paper, plastic is broken due to technical error
• The material is porn of installed norm is not correct
• Printing errors need to do it again.

If the business does not have tools to measure the cost in each stage, the cost of this is “hidden” in the total cost of production and is not clear analysis to indicate the cause. This leads to:

• Waste not controlled
• Loophole in the process continue to exist
• The profit margin products is reduced.

An ERP system packaging industry allows businesses at the same time price comparison of reality with the price of the norm was planning, from which analyzes the causes of discrepancies costs at each stage of production, as a basis for the control, improved operational efficiency.

Thanks to that, the business can determine the exact points that need improvement, control and reduce production costs. Operational efficiency is enhanced to contribute to improving directly the profit margin after tax. At the same time, the business limit the risks hole in the order complex as well as actively build strategies get new menu based on the actual cost.

3. The analysis ERP important for business packaging industry

In the process of operating a business manufacturing packaging, the activities related to sales, purchase of raw materials, production, inventory and financial attached to each other. An ERP system packaging efficiency will link throughout these operations to create value actual operation, instead of every parts to work independently.

3.1. ERP, sales management, packaging industry

The sales management in erp software packaging industry not only as tool storage order as the traditional software, but also support board business:

• Quote flexibility based on many factors fact: In which the level of production (material, size, size), the price of raw materials at the time of quotation. This helps to ensure that the prices given do not suffer losses due to neglect fluctuations in input costs.
• Track the progress of orders in real time, i.e., any changes in the production or delivery are also updated timely, helping the sales department proactive communications with customers.

Actual value ERP bring business packaging shown in the shortened time quotes, customer feedback. To limit errors due to fluctuations in the price of raw materials has not been updated promptly, at the same time enhance the ability to commit to and meet delivery schedule.

3.2. ERP purchase order management & inventory

One of the biggest challenges of the business of packaging is to control raw material, inventory not to excess but also no shortage cause disruptions to production.

Purchase, inventory in the erp system packing help:

• Auto-suggest buying raw materials based on the production plan has been established, inventory levels, safety. This avoid buying it when the price is high or shortage of raw materials when needed folding.
• Traceability of raw materials, i.e. business can clearly identify the shipment, the time to enter, supply unit, related to each investment. This is especially important when customers require quality certification or traceability.

Enterprise value received, including reducing the cost of capital, storage, capacity, quality control, raw material inputs in order to limit risks disruption of production due to shortage of supplies.

3.3. ERP production management, packaging

Packaging manufacturing consists of many steps coordinate: printing, laminating, cutting, gluing and finishing. Each stage is related to the time, quality as well as cost separately. The production management in the erp system packaging support:

• Production planning according to the capacity of machinery orders: avoid scheduling conflicts with running machine or stage.
• Track progress in each stage, ensuring every step is done right order and on time, reduce risk, delay progress overall.
• Time recording machine stops (downtime) & evaluate machine performance (OEE) to help businesses understand the effective use of assets, identify points for improvement.

Actual value achieved is the ability to control the production schedule transparency, the optimal level of mining equipment as well as minimize defective product or late delivery against commitments.

3.4. ERP calculate the price of produce packaging

The determination of prices of production, accuracy is extremely important in the packaging industry, as input cost volatility often has many components cost small retail.

The calculated price in the erp software industry, packaging, business support:

• Calculate the price of the norm, i.e. based on the original plan
• Calculate the price of reality, reflecting the costs have been incurred
• Calculate the price according to each stage, help understand the costs specific in every step of production.

Through it, businesses can:

• Analysis of the proportion of costs between raw materials, labor and production costs
• Evaluate the shrinkage, the cost of defective products
• Adjust the plan price or production strategy based on real data.

Businesses have the ability to assess the orders do not bring profit, orders, any risk of holes, which helps a decision to receive or reject orders in a lucid manner.

3.5. ERP accounting – finance

ERP accounting – finance does not merely replace accounting software independently, without data connection, operated with financial data to provide instant info for leadership.

The strong point of this module:

• Meet the standard accounting applied in Vietnam such as VAS, ready for audit and compliance reporting.
• Provide financial reports, management reports in real time. Help leaders to grasp timely business results, cash flow.

When financial data is interconnected with the distribution system sales, production, purchase. businesses can track the expenses incurred in real time, to measure the effectiveness profits according to each channel and product line, at the same time financial planning, as well as forecast cash flow more accurately.

4. ERP software brings the benefits for business packaging industry?

Implementing ERP systems, packaging industry, not merely as investment in technology, which is a strategic decision on operation management. In the context of business must simultaneously control costs, ensure progress in order to maintain quality, ERP role platform that helps handle the complex requirements consistently effective.

4.1. Control the entire value chain packaging production

One of the greatest values of the erp system packaging is the ability to connect data from the beginning to the end process of operation. Usually, if there is no ERP, the sales department, warehouse supplies, production and accountants often work on the tool individually as Excel, leads to:

• Data not homogeneous,
• Data entry duplicate
• Difficult to track actual progress of the order.

ERP integrates data from stitch quotes, receiving orders, production planning, raw material purchase, tracking production, delivery to payment. This creates a single data source, updated in real time to help leaders and departments to coordinate throughout.

4.2. Optimize inventory, reduce cost of capital

In the packaging industry, raw materials such as paper – plastic – ink always occupied a large proportion in the total cost of production. The reserve too much inventory leads to capital is locked in when the inventory shortage can stop production, as well as losing customers.

ERP software industry packaging enables enterprises to:

• Track inventory by lot, the location and age of survival to understand the level of use of each type of supplies
• Auto-suggest purchases based on the production plans, inventory levels, safety
• Reduce excess inventory & steady cash flow by avoiding buying sooner or inventory for too long.

Actual value business achieve is to reduce the capital stock in excess, limiting the shortage of raw materials unscheduled maintain steady cash flow for production activities.

4.3. Calculate the price of your specific orders

In production environment packaging with multiple product versions – different in size, material and technical requirements – calculate the price accurately is challenging.

ERP software packaging allows businesses to calculate prices according to:

• Order specific rate actual cost compared with the estimates,
• Stage of manufacturing individual help determine the cost born at each step, such as printing, laminating, cutting, gluing,
• Unfinished products help to assess the value of inventory, semi-finished products, serving the settlement of financial statements.

Enterprise value received:

• Understand orders which have interest, orders, any risk-hole
• Support leadership initiative decided to accept or reject orders based on analysis of actual costs,
• Optimal selling strategies, selection of target customers.

The ability to analyze the cost of each cost component to help businesses react flexibly to changes in prices of raw materials, fluctuations in the market. Thereby improving efficiency of operations, margins, overall.

5. Selection criteria ERP packaging industry to fit optimal deployment costs

When digitizing operation, many enterprises packaging have difficulty in choosing the ERP in accordance with the peculiarities of production. The wrong choice can lead to increased costs, deploy prolong the effect is not as expected. So, there should be clear criteria to evaluate options ERP industry, packaging suitable.

5.1. Have experience deploying for production enterprises

An ERP vendor can write out the technical features attractive, but what is more important is the ability to deploy successful in the real environment of business manufacturer.

In the packaging industry, the production process consists of many complex stages, as well as every business has to operate differently. Therefore, when choosing ERP, business should be a priority supplier have experience deploying for production enterprises, especially models produced according to order multiple product variations.

Enterprise value received when choosing the right supplier:

• Shorten deployment time thanks to re-use the pattern, realistic experience.
• Reduce risks during data conversion, configuration internal processes.
• Support consultancy deeper instead of just technical support merely.

As practice shows, the ERP project success usually starts from understanding the actual operation of the business of the same knowledge deployment in accordance with model specific production there.

5.2. The ability to customize special packaging

No two businesses any packaging process works completely the same. Some businesses focus on paper packaging, may need to monitor printing technique more complex, while the business of plastic packaging are usually more concerned about the cost of raw materials and process laminating.

Therefore, an erp system industry packaging efficiency need to be able to flexible customization:

• Allows businesses to set the level of raw materials according to many product variations
• Allows adjustment of the production process in accordance with each series, each type of products
• Easy configuration analysis reports according to the requirements of internal governance.

This customization ability to create actual value in operation management:

• Business't have to “squeeze” operation process on a patterned rigid
• Users can expand upon the scale of production changes or when developing more new products
• Reduce the cost of custom long-term because the system allows configuration by internal processes without re-writing code or change the core.

Many businesses fail with ERP because of the “one size for all”, leading to cost customizable too large operating procedures distorted not effective.

5.3. Easy to use for non-professionals IT

A major barrier when implementing ERP packaging industry is the level of acceptance of the user. Team operated mainly hr professional, not specializing in IT, so if the interface complex process use do not clear will increase the time the error data as well as reduce the system efficiency.

Therefore, criteria easy to use and user friendly are the factors that determine long-term success of any ERP project does.

Factors to evaluate:

• Intuitive interface, easy to understand with user,service and
• The terminology is clearly explained in the system,
• Process guide, step by step (workflow) clear from when planning to when the output report.

Enterprise value received when selecting the system easy to use:

• Reduce training time,hr
• Increase speed, apply in practice,
• Reduce errors due to input errors or misunderstand the process,
• Increase the rate of acceptance of users.

6. ERP solution packaging industry SureERP of Vietnam

When evaluating ERP industry, packaging, business priorities, the ability to solve operational efficiency compared to the cost of investment than is the number of features. In that context, SureERP of Lac are many business options thanks to match the operating conditions in Vietnam, easy to deploy effective practices.

6.1. Overview of SureERP

SureERP is management solution, enterprise resource due to Lac of development, towards the manufacturing enterprise as well as distribution in Vietnam, many of which are production models such as paper packaging, plastic packaging and the packaging according to the order.

Unlike many ERP system is designed to model governance standards the global SureERP is built based on practical operating enterprises, where:

• The production process usually flexible to change according to the order
• Businesses need to tightly control costs but still ensure progress,
• Operating staff are not technology experts.

Three core values that SureERP be business news user include:

• Inclusiveness: SureERP covered the full core business of manufacturing enterprises: from sales, purchase, inventory, production, price calculator to accounting – financial and human resources. This helps the business operate on a unified system, rather than multiple software discrete.
• Flexibility: the System allows to configure according to the actual process of each business packaging, instead of forcing businesses to change the way operate to “match software”.
• Appropriate governance practices in Vietnam: SureERP support, accounting standards, corporate governance report compliance requirements in Vietnam. Help medium business administration effective, just ensure the legality.

6.2. SureERP meet good math packaging industry like?

The packaging industry has special production according to orders, many product variations, as well as the cost of raw material volatility. SureERP is designed to solve directly these issues through the contact information data, operating procedures.

• Management throughout the entire sequence of operation: SureERP help business packaging management throughout from sales, purchasing, and inventory to production and finance. The data is used for consistency between the parts, which helps reduce false data, limiting the operating discrete.
• Calculate the price of the exact pressure drop, the end states: SureERP help business packaging recorded cost, real-time price comparison of reality with the norm, and the analysis of variances in order stages. Thanks to that, the business soon recognized in profit and loss as well as active control, profit, instead of cumulative pressure at the end of the period.
• Report of management board, multi-dimensional decision support fast: SureERP provide reporting systems administrator, multi-dimensional in terms of revenue, costs, profits, inventory, production schedule, as well as the cash flow in real time. The report serves directly for the leader board, help decision fast accurate in the context of the market, the price of raw material fluctuations.

For business packaging production, Lac Viet SureERP is ERP solutions in accordance with the requirements management-intensive practices operating in Vietnam. The system helps control costs, optimize inventory – cash flow at the same time enhance effective coordination between the parts. At the same time, SureERP support leadership decisions based on reliable data. Detailed information about the solution may refer to: https://erp.lacviet.vn/

ERP packaging industry has become the core foundation to help businesses control costs, optimal operation as well as to enhance competitiveness. When data is contact information from sales, manufacturing to finance, businesses can make decisions based on actual data. Choosing properly implemented ERP helps business to operate a transparent, flexible, and ready to expand sustainable.