The digitalization of the economy is underway. In this context, the digitalization of companies in the packaging sector reveals many specific challenges to overcome in order to become truly "digital agile".

Packaging manufacturers are still deeply rooted in an industry-heavy culture. The digital world represents a complete shift from their historical working methods.

We have identified the five main challenges specific to the packaging sector’s digital transformation, including stakes for people, for markets, for marketing, changes in the industrial tool and finally in social responsibility.

The human challenges linked to the digitalization of packaging companies

Whilst being able to adapt is a key part of being human, many fear change. The challenges posed by the digitalization of businesses are often greeted, at best with perplexity, if not with anxiety.

Yet in their private lives, the men and women who make up organizations are often connected or even hyper-connected. But we note that digital habits in private life do not always translate into the professional sphere.

Since the digitalization of companies cannot afford to wait for the cohort of "digital native" employees to replace previous generations, we believe it is important to put employees at the heart of their company’s digitalization. Ideally, digital initiatives should be generated by your workforce rather than by management.

To do this, management must create the conditions for your teams to be made responsible for the mission of simplifying and automating their tasks. It is therefore projects motivated by simplification, data security and automation that lead to digitalization. We would like to remind you that technology is at the service of people and industrial processes and not the other way around.

Thus, the digitalization of packaging companies will be carried out and promoted by those who are often the most resistant to it. The management, with the help of the IT department and possibly a digital agency, will be responsible for centralizing and coordinating the needs for digital tools that are best suited to the needs and expectations of the organization.

Finally, to maintain the primary dynamic and secure the company's digitalization objective, a representative from each group will be involved in defining digital solutions, their implementation, training in tools and finally in calculating return on investment.

The digital transformation of companies and its consequences on the market

Packaging manufacturers have, through digital communication and marketing, the opportunity to come into direct contact with the consumers and users of their packaging solutions. In addition to sharing practical tips and techniques of use, you could create real test beds before launching new products.

While it seems obvious that your relationship with packaging users should be a primary focus, it is often neglected or replaced by listening only to direct customers.

Yet one of the great benefits of digitizing packaging companies is to bring them closer to the consumer or end user. This new proximity has a strategic impact with high added value of two types:

1. It rebalances the strengths and powers of packaging manufacturers when negotiating with their direct customers
   
   
   
2. It allows the marketing department to create product briefs based on a significant volume of data facilitating decision-making.
   

By integrating digitalization, the packaging sector is giving itself the means to accumulate quality data in its markets. Since data is always fair, it avoids subjective decisions and allows companies to define their growth strategy on factual and tangible elements.

Digitalization in the packaging industry boosts your marketing and sales 

Digital Marketing is a growth tool that is still underestimated by the packaging industry. However, some large packaging groups such as Smurfit Kappa, Albea or Raja have understood that digital transformation represents a considerable opportunity to increase the precision of marketing actions and optimize sales

We can say that with Digital Marketing, Marketing now has the means to achieve its ambitions, the main advantages of which are:

1. BtoB digital marketing makes it possible to communicate with key contacts or customer purchasing committees in order to create the conditions for purchasing, loyalty and repurchase
   
   
2. Actions can be tested and their ROI analysed on a sample of the target before being deployed on a large scale
   
   
3. Marketing actions are monitored in real time and can be stopped or redirected at any time as soon as their profitability is no longer within the target
   
   

Digitalization has revolutionized the way of conceiving Marketing in BtoB exchanges, it is suitable for all sizes of companies and all budgets.

>>> More to learn : B2B Marketing and Packaging industry : how to boost your sales ?

Industrial Performance increased by digital transformation

The digitalization of industrial tools began with the creation of digital interfaces to connect production tools to the inventory planning and management (ERP) program

But the great novelty is the digital interconnection of all players in the same sector throughout the value creation chain.

This digital interconnection allows:

1. To shorten the design and manufacturing times of a packaging solution and possibly the finished product by allowing all stakeholders to have a view of the planning of their colleagues upstream and downstream

2. To reduce the risk of workmanship and waste through the use of a single source of plans and procedures

3. To deliver optimal customer service thanks to a real-time view of the load plan and the progress of their order

In a context of increased competition coupled with a shortened product life cycle, the digitalization of industrial facilities is a key factor for the success of packaging manufacturers.

>>> More to learn : 4 benefits of hiring a Digital Marketing Agency specializing in the Packaging industry

Corporate Social Responsibility benefits from digitalization

CSR brings together the concepts of respect for people and the environment. If the ethical, human and environmental efforts are laudable, the corporate citizen will know how to promote its CSR policy to make it a marketing argument.

CSR is therefore accompanied by the need to highlight your actions which will contribute to your added value.

Digital tools are expressly complementary to CSR in their capacity to:

1. Integrate non-financial performance indicator

2. Measure progress in volume and value per share responding to CSR

3. Present the results to prospects via social networks for example

4. Inform your customers regularly from a CRM

5. Create an internal community within the company around CSR project

While digitalization makes it possible to collect, analyze and steer CSR actions, it will also be necessary to integrate the environmental cost of digital installations (computer equipment, servers, energy consumption) in order to be perfectly transparent.

And tomorrow ?

With the introduction of artificial intelligence, the digitalization of your packaging business will become a major challenge. So don't delay too long in initiating your digitalization if you want to fully reap the benefits for your organization.