Great investments needn’t cost the earth

Spend time with small and medium-sized packaging businesses and there’s a buoyancy and optimism that’s in stark contrast to the gloomy mood of so many other areas of manufacture. It’s a shame that so many of these ‘good news stories’ are overlooked in the general malaise of the economic press, particularly since business good fortune isn’t generally down to luck.

Packagers doing best are those facing up to today’s challenges and looking beyond. They’ve had the foresight to plan for growth. Taking time out to anticipate issues and addressing them with a constructive spirit and confident approach is the greatest investment that can be made in manufacturing – and it doesn’t have to cost a thing. So what are these challenges?

One of the primary stumbling blocks to better business is underperforming management information systems (MIS) and poor implementation of business intelligence. It’s not that packaging companies lack investment in bespoke IT. To survive and grow, most have purchased a system and upgraded it at strategic intervals so that it continues to handle a fluid and developing workflow. However, to get the best value from MIS, accountability counts.

Whether it’s our house, our car, or even our appearance, we tend to take greater care of the things we own. Developing ownership of MIS among employees, therefore, pays dividends. Involve sales production, operations and finance people. Find out what they need. What would make their days more efficient? What would help their team improve performance? A system that they nurture will be one used to its full potential.

Involving people in the adoption of MIS doesn’t necessitate further expense. However, the integration of systems may require investment in new MIS or an upgrade. Fully integrated MIS is an absolute boon to business, and small and medium packaging firms must wake up to the time, cost and materials savings that the end-to-end (job definition format) workflow solution provides.

JDF enables more job definition elements to be prescribed than any other format – from materials, dimensions and ink settings through to deadlines. It eliminates time consuming re-entry of information as it passes along the production chain, and reduces the potential for errors to be introduced. Meanwhile, real-time progress and feedback is tracked by the MIS system through JMF (job messaging format). This puts automation into the hands of small and medium-sized packaging companies – and automation is the gold standard in this line of business.

Setting standards

There is no question that spot-on accuracy and quality in processes – through having the right team and the right MIS – saves money. Long-term, it can save a fortune.

It never fails to astound me how frequently packaging companies are left footing the bill for mistakes, often caused through a lack of clarity in the work that’s been accepted. And this is the issue.

It doesn’t matter whether it is the client’s dodgy brief or the supplier’s handling of it that’s at the root of the problem. When a problem occurs, the packaging firm invariably loses out. Its choice is to hold up its hands and write off time and materials for an incorrect job, or fight its corner and risk an unhappy client.

The answer lies in setting standards. The management team needs to take full and firm control of each area of the business, with sales people rewarded for an accurate reflection of production capacities – and limitations. This makes for a company driven by customer service and not by production.

‘Managing client expectations’ is an often-heard statement, but so is ‘commercial suicide’ and that’s the only commitment you make if you over-promise and under-deliver.

So what’s the plan? Well, if you’re now, pencil in hand, pondering the best way forward, it’s prudent to make it a three to five-year strategy. Planning ahead starts with setting out monthly, six-monthly, annual and longer term goals. Be realistic about what’s achievable, but don’t be afraid to set your team challenges – and rewards – for delivering your aims. Identify weak links early on, and reorganise to eliminate them.

“It’s easy for you to say”, I hear you mutter. True, but if you are struggling to identify how to overcome challenges, you’re not alone.

There are impartial experts working specifically within the packaging and printing sector to assess business practices and assist with business planning.

Views expressed on this page are those of the author and may not be shared by this publication.