Three Strategies for Improving Integration Between Warehouse and Packaging Operations

The value of physically locating packaging operations within the warehouse is well documented and now widely accepted. Brands that need the agility that comes with late-stage customization simply can’t afford the extra time and costs associated with shipping to and from dedicated packaging sites.

But this physical co-location is only the first step in bringing together packaging and warehouse operations in ways that enable shorter planning timelines, increased efficiency and faster response to market changes.

Software Integration

The benefits of packaging co-location can only be fully realized when software across the two operations is integrated.

The hub of this integration is a dedicated packaging software platform that provides the required support for the unique workflows encountered in packaging operations while also serving as a single source of truth for packaging processes.

When a packaging software platform that features material resource planning (MRP) capabilities is integrated with the warehouse management system (WMS) the critical process of demand planning becomes substantially more efficient. That efficiency translates into shorter planning windows and reduced risk that necessary materials won’t be available when needed.

Finished goods forecasts from the customer systems can be automatically loaded into the packaging system, which then generates detailed bills of material for each finished good. Working from these bills of material, a material-agnostic packaging partner, such as DHL Supply Chain, can work with a network of material suppliers to enhance designs, explore material options and ensure the necessary materials are available when needed at the lowest cost. By having visibility into future demand, the economies of scale represented by aggregating component demand can be leveraged to achieve bulk pricing while material deliveries are scheduled to arrive on site as needed to limit material storage requirements.

Direct integration between the packaging software platform and the WMS also delivers benefits as it provides the packaging system with visibility into warehouse inventory and product movements.

Inventory Integration

Effective demand planning minimizes the risks of process delays resulting from packaging materials not being available when needed. Optimizing the process also requires a holistic view of feeder stock, including what’s in the warehouse, what’s in transit and what’s on the packaging line. This is enabled by integration between the packaging software platform and the WMS. When both systems are communicating, product inventory can be managed more efficiently and the impact of peaks in the packaging operation on warehouse inventory can be planned for and minimized.

There can also be opportunities to integrate warehouse and packaging processes to streamline product movements and maximize space utilization. In some cases, labor can even be flexed across the two operations to support packaging peaks.

Data Integration

A robust packaging platform provides extensive data to enable packaging managers to track real-time production performance and leverage historical data to maximize the productivity of each line. The platform should also support end-to-end tracking from subcomponent receipt to finished goods shipment.

The data from the packaging platform can be valuable to supply chain managers responsible for overall supply chain performance, especially when it’s integrated with data from warehousing and transportation operations.

At DHL Supply Chain, we accomplish this through our MySupplyChain platform. MySupplyChain provides single pane-of-glass access to warehouse, packaging and transportation data, including convenient dashboard views designed to simplify supply chain performance management. MySupplyChain integrates packaging data with other supply chain operations to deliver full global supply chain visibility, including near real-time inventory and order tracking across the network.

Packaging is an integral component of today’s supply chains, not an isolated operation performed off-site by suppliers disconnected from other supply chain processes. The more integrated packaging becomes with warehouse operations, the more you can capitalize on digitalization to enhance flexibility and reduce costs. Gaining visibility into upstream processes drives downstream flexibility and efficiency.

To learn more about how DHL Supply Chain can help optimize your packaging and warehouse operations, visit http://app.supplychain.dhl.com/e/er?s=1897772577&lid=8099.

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