Market Insight


early, reducing errors and waste. For many companies, the production line is their second- largest source of loss, and improving efficiency here could have a transformative effect on margins.


“The goal isn’t necessarily full automation with robots,” Falck noted. “It’s about using technology to catch errors that would otherwise go unnoticed, improving overall efficiency.” AI and machine vision tools are already showing significant potential in enhancing quality control and reducing waste during production.


Collaboration across the supply chain A notable shift in the packaging industry is the growing trend towards collaboration across the entire supply chain. Rather than maintaining traditional silos, stakeholders are beginning to communicate more effectively and share information.


Falck cites the automotive


industry as an example, where manufacturers are increasingly sharing insights into optimising their supply chains and improving sustainability practices. In the packaging industry, and particularly at events such as the upcoming Packaging


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Innovations & Empack at the NEC in Birmingham on 12-13 February, a spirit of collaboration is gaining momentum. “Packaging companies and their suppliers are increasingly working hand-in-hand to streamline operations and enhance sustainability. For instance, AI-driven models can simulate and evaluate packaging designs virtually before physical prototypes are created. This enables more accurate predictions of how material changes will affect product performance and environmental impact,” Falck noted.


Such innovations can streamline the design and testing process, saving both time and money while improving sustainability.


Personalisation and sustainability: A balancing act Personalisation is becoming an increasingly important factor for consumer satisfaction, and packaging is no exception. Companies must balance the growing demand for personalised offerings with operational efficiency and sustainability goals. However, as the trend towards personalisation rises, so too do its implications for sustainability.


Customised


products often require more complex packaging solutions, which can increase material waste and impact environmental goals.


Falck acknowledged that while personalisation can enhance customer relationships and enable premium pricing, it also requires smarter optimisation strategies. “Personalisation allows businesses to charge a premium, but as it becomes more widespread, packaging companies will need to find ways to make it both profitable and sustainable,” he said.


He also highlighted that the more customisation there is, the more vital it becomes to optimise the supply chain. “Packaging companies are continually reducing the amount of material used in their products. Although there’s still much to be done, the progress made in the past few years, particularly in reducing waste, is significant. But there’s always more to be done, especially given the narrow margins in the industry,” Falck concluded.


The road ahead: Continuous improvement and agility


The journey towards continuous improvement in the packaging sector is ongoing, and businesses that invest in innovation and remain agile will be better positioned for long- term success. Technological advancements such as AI, automation, and machine learning are reshaping operations and providing opportunities to reduce waste,


improve


efficiency, and meet evolving customer demands. But with increasing pressure to balance short-term profitability with long- term sustainability, the key to thriving in this dynamic environment lies in embracing change, staying adaptable, and fostering strong communication across the supply chain. As Falck concludes: “The potential for


growth is immense. Companies that can identify areas for improvement—whether in


stock management, production lines,


or sustainability—will be well-positioned to thrive. The road to sustainability and operational excellence is an ongoing journey, and those that stay ahead of the curve will reap the rewards.”


12 Kennedy’s Bakery Production December/January 2024/25 bakeryproduction.co.uk


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