Why packaging converters need packaging ERP software
Packaging is a make-to-order business with very little room for error. Almost every job is specific to one customer: a box of a particular size, ply and print, or a laminated pouch with the customer brand printed on it. Orders repeat, but each repeat has to match the previous supply exactly, often under pressure because the customer production line is waiting. Packaging ERP software keeps the specification, the materials and the cost of each job together so that this can happen reliably.
Packaging margins depend on material yield. Paper reels, films, inks and adhesives make up most of the cost, and trim, set-up waste and over-production can eat into a job before anyone notices. DotOne, which we configure for corrugated box makers, monocarton and label printers, and flexible packaging converters, records consumption and waste against every job card so that the estimate made at enquiry can be checked against what really happened.
Corrugated boxes: from paper reel to finished box
Corrugated box manufacturing starts with kraft paper reels bought by GSM, bursting factor and deckle width, and stocked reel by reel with weight. The box specification sets out the length, width and height, the number of plies, flute types and the paper GSM for each layer.
Reel inventory
Every reel is received with its reel number, GSM, BF, deckle and weight. When a reel is partly used, it returns to stock with its balance weight, so stock is always known reel by reel rather than as a total tonnage. Moisture and quality checks at receipt can be recorded against the reel.
Corrugation and board making
On the single facer or corrugator, reels are combined into 2-ply, 3-ply, 5-ply or 7-ply board using starch adhesive. The ERP records reels consumed, board sheets produced by size, starch and other consumption, and trim waste. Deckle planning combines orders of compatible board specification to make the best use of reel width.
Printing, die cutting and finishing
Board sheets are printed by flexo, slotted or die cut, and then stitched or glued into boxes. Plates and dies are tracked as customer-specific tooling with their location and condition. Output is recorded in boxes, with set-up waste and rejected boxes booked against the job.
Because box weight can be calculated from the specification, the ERP compares theoretical paper consumption with actual reels issued. This is the single most useful control for a corrugated unit, because paper is the largest cost.
Flexible packaging: printing, lamination and pouching
Flexible packaging converts films such as BOPP, PET, metallised film and polyethylene into printed, laminated rolls or finished pouches and bags. The process involves more stages and more consumables, and every stage has its own waste.
- Film stock: rolls by type, micron, width and weight, with supplier lot and treatment level.
- Printing: rotogravure or flexo printing with job-specific cylinders or plates, ink consumption by colour and solvent usage recorded per run.
- Lamination: two or three-layer structures bonded with solvent-based or solventless adhesive, with adhesive GSM and curing time recorded.
- Slitting: laminated rolls slit to customer width and length, with edge trim booked as waste.
- Pouching and bag making: three-side seal, centre seal, stand-up and zipper pouches counted in numbers, with seal and dimension checks.
The ERP converts between kilograms, running metres, square metres and pouch counts using film structure, GSM and dimensions, so a customer order in kilograms or in number of pouches can be translated into the film and ink required. Cylinders are tracked by job and by customer, with their storage location, number of impressions and remake history.
Specifications, artwork and repeat orders
In packaging, the specification is the product. We set up a specification master per customer item that holds dimensions, ply or structure, material grades, print colours, artwork version, tooling references, packing method and quality parameters. Every job card is created from this master, so repeat orders are produced to the same standard without anyone searching through old files.
Artwork changes are controlled through versioning. When a customer sends a new artwork, the old version is retired, and any printed stock or tooling linked to it is flagged. This prevents the costly mistake of printing a repeat order with an outdated design, and it makes customer approvals traceable.
Estimation, job cards and production planning
Packaging enquiries need a quick, accurate estimate. The ERP calculates material requirement from the specification, adds expected waste for the process, conversion cost per stage and tooling cost, and produces a quotation. Once the order is confirmed, the estimate becomes the job card, carrying planned quantities for every stage.
Planners schedule jobs across corrugators, printing machines, laminators, slitters and pouching machines, grouping jobs that share board specifications, film structures or colour sets to cut down set-up time. Material availability is checked before release. The production planning module shows machine loads and which jobs are at risk of missing dispatch dates.
Wastage, quality and job costing
Waste in packaging comes from several places: deckle and edge trim, start-up and register waste in printing, lamination defects, slitting trim, pouching rejections and over-production beyond the quantity the customer will accept. The ERP captures each against the job with a reason, so waste can be measured by machine, job type and operator.
Quality checks such as bursting strength, edge crush or compression for boxes, and bond strength, seal strength, coefficient of friction and print register for flexibles, can be recorded per job. The quality management module keeps these with the job for customer audits.
Job costing then compares estimated and actual material, waste, machine time and consumables. Over time this shows which customers and product types are profitable and where estimates need correcting. See costing software for more on job costing.
Customers, dispatch and GST
Packaging customers are usually manufacturers who place scheduled orders and expect delivery against their production plan. Many agree a quantity tolerance on each order. The ERP records the agreed tolerance, invoices the actual quantity supplied within it, and keeps balance quantities open on scheduled orders.
Dispatch documents list boxes, bundles or rolls with weights, and generate the GST e-invoice and e-way bill. For customers who send their own film or board for conversion, the material is held as customer stock and only conversion charges are billed. Waste paper and film scrap are weighed and sold through the ERP as well.
Stock of finished boxes and printed rolls made ahead of a scheduled order is reserved for that customer, because printed packaging cannot be sold to anyone else. The ERP shows how much customer-specific stock is lying in the warehouse and for how long, which matters when a customer changes artwork or delays a schedule and the printed stock risks becoming obsolete. Sales teams can see this alongside open orders and outstanding on the mobile ERP app before they agree a new schedule.
What is the best ERP for the packaging industry?
Packaging businesses should judge packaging ERP software by how it handles specifications, reels and waste. In a demo, ask the vendor to create a box or pouch specification, estimate a job from it, issue reels or film, record set-up waste and trim, and compare estimated with actual cost. Check whether reels are tracked individually with balance weight, whether cylinders and dies are managed as tooling, and whether artwork versions are controlled. Our guide on how to choose ERP software has more questions for your shortlist.