How can the Intelligent Enterprise Impact the Packaging and Paper Industry
The digital economy is disruptive. Paper and packaging companies need strategic priorities that drive transformation. SAP powered by Approyo supports a reimagined set of end-to-end (E2E) business scenarios to support the strategic priorities of working in a digital environment.
Achieving customer centricity - Putting the customer’s point of view at the center of every decision is a key prerequisite for success in the digital age. This goes way past the sales department because it encompasses what to produce and what services are offered. Having relevant information ready for a customer contributes to business success as well.
Offering small lot sizes and individualization - Quick order completion and delivery of tailor-made solutions create additional value for customers. Being able to execute the wish of a customer from order through manufacturing and delivery –all while considering costs and margin – is a key differentiator.
Running smart factories and digital networks - Transform your supply chain into a responsive network. Companies face volatile customer demand and heightened expectations of responsiveness. Innovative technologies can help meet these higher expectations by providing vital business information across the network. Real-time insights into operations such as asset status enable agile and intelligent responses to last-minute changes such as urgent customer requests or machine failures.
Supporting value-added services and new business models - The digitalization and interconnection of products and services create additional value. An example is being able to drive new revenue opportunities by providing additional data on products shipped or advice on the best use of a complex product. There is also the opportunity f or companies to look up, down, and across their value chains to expand into additional markets that evolve into managing ecosystems.
Producing for purpose - Paper companies want to address growing expectations from customers, investors, employees, and society. Offering a safe, attractive, and purpose-driven business attracts talent, investors, and customers alike. Efficient production and logistics contribute to lower emissions and energy use –increasingly important criteria for suppliers. Reuse of materials is the future as part of closed-loop material circulation.
Supporting next practices in paper and packaging with intelligent ERP
Radical change in the paper industry is occurring at a rapid pace. Changes in technologies, business models, standards, and the makeup of paper companies themselves require constant adaptation. Paper companies must be able to respond to rapidly changing conditions yet still comply with all standards. How does a digital core with a true single source of truth help?
Paper companies must respond to rapid changes
A digital core is an IT architecture that offers stability and long-term reliability for core enterprise processes, yet it also provides the flexibility to adapt quickly to new opportunities, challenges, and regulations. In today’s environment, macro issues such as tariffs can have immediate impact on an industry and IT – the backbone of modern business – has to be agile to ensure compliance. Support for mergers or acquisitions is required to ensure swift adaption to changing markets.
What-if scenarios, analytics, and predictive capabilities
The ability to respond quickly is an essential part of managing a paper and packaging business. To do this, simulation, prediction, and analytical capabilities are important components. This can be the simulation of energy consumption, predicting sewage contamination in water, or the best production sequence in a shift.
Generating additional value from data
While production processes in paper do not change much, the speed of business is disruptive. Paper companies need the computing capability to carry out complex algorithms with large data sets to support timely, real-time analysis. The base data comes from sensors that enable precise digital twins of products and processes. In a paper mill, data sets will be available that can be used by machine learning to improve quality predictions. This provides more reliable information for all related processes – and for customers. For example, a print shop can adapt its machine parameters to the exact profile of a paper roll to run at the maximum speed possible.
Addressing innovative opportunities
Paper companies have to offer new products and services to better meet individual needs and gain a competitive edge versus other industries. Collaboration and sharing of resources will be part of business to deliver on new customer experiences, products, and services.
The intelligent ERP powered by Approyo
Bringing SAP S/4HANA and SAP Leonardo technologies together as a digital core will result in a more flexible and intelligent enterprise. To achieve next-generation business processes, paper and packaging companies need an intelligent ERP solution. For example, machine learning can help in daily business to ensure ordering the correct spare part by using image recognition to identify its correct version. Early adopters have already begun this journey to gain the competitive edge for a top seat in the next generation of paper and packaging businesses.
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