Packaging industry turns to digital tools to tackle supply chain hurdles

A cascade of geopolitical events has tested the resilience of packaging supply chains this year, pushing packaging producers to look toward emerging digital and data solutions for process optimization. 

Packaging Insights discusses the biggest challenges to achieving greater transparency across the packaging supply chain with Avery Dennison and Polytag, providers of connected packaging solutions, as well as BoxWay Packaging, a supplier of fiber-based corrugates and consultancy services. 

“Digital tools, such as traceability platforms or digital product passports, are evolving from just interesting innovations to becoming essential infrastructure,” Alice Rackley, CEO at Polytag, tells us. 

“Data collection, waste tracking, and influencing consumer behavior are all emerging as critical tools to drive supply chain transparency at the end of the packaging lifecycle, shining a light on a part of the supply chain that has traditionally relied on estimates and assumptions.”

Meanwhile, Andrew Woollard, CEO of BoxWay Packaging Group, argues that service providers should not take transparency to mean drowning customers in data. “It’s up to us as experts to use specific, relevant data points strategically in order to remove complexity for customers rather than add it.”

“Transparency is nothing without an open and honest approach. At BoxWay, we are straightforward about the strengths and limitations of every packaging choice based on target market, audience, and supply chain requirements. We use data to enable and empower those discussions, not replace them.”

Management challenges

Data collection, waste tracking, and influencing consumer behavior are emerging as critical tools to drive supply chain transparency, according to Polytag.Procurement and delivery can be interrupted at any stage of the packaging process. Avery Dennison and BoxWay Packaging provide examples of the hurdles they see most often and how packaging connectivity has facilitated lean management.

Mathieu De Backer, VP of Intelligent Labels Innovation at Avery Dennison, tells us that many companies are looking to create more resilient and transparent supply chain models due to higher market uncertainties at present. 

“The main challenge they face is providing every physical item with a digital identity. Some items are more difficult to tag with a digital trigger than others, requiring packaging type changes and modifications for a more tag-friendly solution.”

“Avery Dennison has a history of helping clients with items that have been traditionally difficult to tag,” De Backer continues. “This is exemplified with our AD IdentiFresh inlay series, a breakthrough innovation that combines deep material science expertise with optimized radio frequency inlay design.”

“This development unlocks significant value within the food retail industry, enabling reliable use of radio frequency identification (RFID) technology to digitize and automate fresh management from production to point of sale.”

Meanwhile, Woollard highlights that in BoxWay Packaging’s segment, corrugated materials can contain fiber from a number of different sources, from virgin fibers to recycled fibers that have already been through several life cycles.

“The complexity of today’s supply chain means it’s easy for data to become siloed as packaging material moves from forestry to production, distribution, and end-of-life,” he adds.

He explains that relevant data is generated by many organizations that all use different systems and sustainability standards. “Often, businesses have visibility of their direct suppliers but try to look further up or down the supply chain, and it gets more difficult.”

“This is manageable for experienced teams like BoxWay Packaging, but smaller businesses may not have the capacity or capability to address it at the scale required,” he asserts. “This is why we place such a strong emphasis on agility, with sites strategically located across the UK, ensuring we can remain flexible in response to emerging risks.”

Digital tools and traceability platforms

Avery Dennison says its AD IdentiFresh inlay series offer h optimized radio frequency inlay design for improved management (Image credit: Avery Dennison).De Backer further explores how Avery Dennison’s digital solutions aim to ameliorate supply chain hurdles in the food and pharmaceutical packaging spaces.

He outlines the company’s “connective tissue,” which includes RFID, QR codes, near-field communication (NFC), and IoT sensors, each creating a data point. “We turn those data points into something actionable.”

“In food, for example, 72% of F&B leaders in our research identified meat-related waste as their biggest operational challenge. A lot of that waste is preventable with better inventory accuracy and data visibility. That’s exactly what our clients are using these tools to address.”

“In pharmaceuticals, the stakes are different, but the principle is the same. Six in ten patients worry their medicine could be counterfeit. Three-quarters (76%) want to know where it came from through ‘Tap In’ or intelligent packaging. Digital traceability through smartphone-tappable packaging can be a direct response to patient concern.”

NFC technology is already being deployed by leading pharmaceutical brands, according to De Backer. He says that it helps reach patients at home with healthcare expertise delivered through smart packaging, “a connection that’s urgently needed in the era of self-care.”

Earlier this year, Avery Dennison expanded its range of NFC products with a flexible integrated circuit product line featuring Pragmatic Semiconductor’s chip.

Polytag’s Rackley adds that the connected packaging industry needs to “work harder” to collect data throughout the lifecycle of a product. “However, more often than not, brands tell us that they want these greater insights and transparency, but they need the vehicle to deliver them to demonstrate a commercial benefit.”

“Digital tools are also powerful commercial drivers, and we work with many world-leading brands who recognize that a strong return on investment is possible when you unlock the potential of packaging as a customer engagement tool and a route to tracking valuable materials through to the point of recycling.”

Recently, Packaging Insights spoke to Avery Dennison, Polytag, and BoxWay Packaging to explore how regulatory pressure, including from the EU’s PPWR and global EPR requirements, is accelerating investment in traceability and connected packaging data.