Packaging Digitalization: Welcome to ‘Market Time’

Companies must be aware of their issues, keep eyes open to what is new and be prepared for the digital journey, because technology is no longer an option—it is mandatory.
Published: October 26, 2022

Ed. Note: This article was previously posted at IoP Journal.

A survey recently released by the Brazilian National Confederation of Industry (CNI), involving more than 1,000 companies, revealed that the nation’s manufacturing industry is more digital now than it was five years ago. Less than half (48 percent) of the companies surveyed used digital technologies in 2016, whereas last year this percentage rose to 69 percent.

However, a bottleneck still lies in the limited variety of technologies employed, which indicates that the digitalization process remains in its early stages—so much so that the survey revealed that 26 percent of respondents use one to three of the 18 technologies listed, whereas only 7 percent have adopted 10 or more. For 37 percent of the companies, a lack of qualified professionals is an external barrier to the adoption of digital technologies.

Liliam Benzi

Liliam Benzi

A question thus arises: How can companies make the transition from a reactive to a proactive environment, especially in the case of packaging industries for business-to-business? Although much is said about the Industry 4.0 journey, few seem to be clear on where to start. One thing is certain: the digitalization of processes is inevitable, just as the digitalization of packaging itself is inevitable. The consumer is digital and will not go back. Therefore, it will be up to the industry to adapt to this demand.

Recently, Videojet, a multinational company in the marking and coding industry, offered an important food client in Chile an exclusive morning of content that addressed just that: the connectivity of packaging to make it active and intelligent. According to Henry Assef, a specialist in augmented reality and interactive packaging, not only industries, but also brands need technology to draw people’s attention and transmit information. This retention of information is 70 percent greater with the use of technologies that talk to consumers.

On the other hand, these technologies allow brand owners to monitor consumer habits, correct possible problems, deliver solutions in less time and, mainly, predict new consumption habits. It is technology transforming packaging into an active experience for and with the consumer. But back to the manufacturing universe, how do we begin the digital journey? Perhaps the first step is to detect problems. According to experts, using artificial intelligence (AI) for this purpose is relatively simple. An AI system captures data, either via sensors or images, and can visualize assets’ performance.

Once trust is established with the system, it becomes easier to use machine learning and AI technologies to keep the assets running smoothly on the shop floor, and to think of new digital applications. In other words, the process is one of continuous evolution. As AI evolves and companies intelligently manage their assets, they seek zero defects and zero downtime. The “Zero D” concept does not decouple defects and downtime, nor does it recommend a separate approach. This is because both points are critical, and the industry only achieves true transformation when it tackles them together.

It doesn’t matter how high production is if there is downtime—a company will not meet demands. The reverse is also true: an industry that is very efficient in its manufacturing processes but has a poor-quality inspection system will increase rework. What is important in this process is that companies must be aware of their issues and keep eyes open—and be culturally prepared—for the digital journey. Not incorporating digital technologies into your processes and packaging is no longer an option.

Everything needs to be monitored, especially at a time when the packaging industry is no longer driven by macro-trends, but by micro-trends. These are increasingly distributed and diverse movements that depend on technology to be transformed into connected processes, products and packaging that make sense for the market, for society and for the environment. Welcome to the era of “market time.”

Liliam Benzi is the World Packaging Organization‘s press and communication officer, and she also runs her own communication and strategy company for the packaging industry, LDB Comunicação Empresarial.