Paper packaging

Paper packaging is produced from paper materials used to pack food, goods, items, etc. They help preserve goods during the process of storage, loading and unloading, transportation from factories to distributors, agents, stores to consumers. Because it is environmentally friendly, not harmful to health, it is applied to many industries such as: Food - Cosmetics - Textiles - Electronics - Furniture wood - Agricultural processing - E-commerce, ... so the paper packaging industry is increasingly receiving attention and investment in development with eye-catching, novel designs and many other useful functions.

Paper packaging has the main product lines:

• Carton paper packaging.
• Boxed paper packaging.
• 3-5 layers of kraft paper packaging.
• PP plastic laminated paper packaging.
• Paper packaging (kraft, ford, coucher) offset printing with PP plastic. ​

PRODUCTION PROCESS

The tariff war between the US and China pushes the tariff rate on paper packaging products to 25% from the end of 2019, which has created a trend of shifting foreign-invested packaging factories from China to ASEAN, including Vietnam.

It is predicted that Vietnam's export value will grow well in 2021 thanks to the advantages of the Vietnam-EU Free Trade Agreement (EVFTA); Comprehensive and Progressive Trans-Pacific Partnership (CPTPP)... to help increase industries that need to use paper packaging a lot such as agriculture, seafood, garment and leather, telephone and electronics, ... not to mention the domestic retail and e-commerce market is also forecast to grow by over 10%.

According to VPPA, the restriction of plastic waste, nylon bags and increasing the incentive to use alternative paper packaging has become a worldwide trend, regulated by many countries into laws, especially in Vietnam, which is showing signs of extensive and strong development in 2021 onwards.

Packaging paper manufacturing businesses also face the challenge of a lack of production materials and prices that remain high in the first 6 months of 2021 because the main supplier of recalled paper is North America, Europe and Japan, which are still strongly affected by the COVID-19 epidemic.

Social distancing reduces the collection rate of paper materials, in addition, the lack of containers and freight is also a big problem, so the lack of raw materials and prices are still at a high level that is very clearly shown.

Meanwhile, the domestic collection source is low, the quality of raw materials is not high, not enough to meet demand when new factories with capacity are expected to increase by 1 million tons in 2021.

Paper packaging enterprises mainly produce according to Orders/Contrats, so the monitoring process from the Business stage - Production planning - Preparation of production materials - Production statistics - Warehouse semi-finished products - finished products must be attached to the Order/Conct. Therefore, businesses face difficulties in the planning stage, importing raw materials, machinery and equipment according to the "Just In Time" principle.

For Sales Department:

• In addition to fixed products, customers often generate new samples, so they must have a "Sample Design" according to the description or available sample packaging provided by the customer, after agreeing, a "Sample product" will be produced.
• Support in determining "Cost Cost Estimate", which is the basis for making Price Lists for customers.
• Support the sales department to determine the delivery response time based on the factory's production capacity and production productivity for each product code.
• After signing the Order/Cont, it is necessary to manage the changes and arising at the request of the customer.
• Track the production progress according to each order and the expected delivery time according to the actual production.
   

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​For the Purchasing Department:

• Support to determine the Purchase Plan to optimize inventory but still ensure sufficient Materials for the Production Plan and backup for the Sales Plan.
• Manage and balance materials to meet the frequent fluctuations of the Production Plan.
• Determine the inventory cycle and turnover by time to make a suitable purchase plan.
• Support good control and evaluate the price fluctuation history of each type of Material to have suggestions to choose a supplier that is suitable for the purchase needs with the best cost.
• Evaluate and rank Suppliers to make the right choice, bringing the best benefits to the company.
   

​For Warehouse Management:

• Manage export-import-warehous in batch, by location, by expiration date for raw materials and supplies with expiration date.
• Determine the appropriate maximum and minimum inventory.
• Control the export of materials/import of semi-finished products, finished products according to production orders.
• Manage the amount of available inventory according to Purchase Order and Production Order.
   

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For Production Management:

• Planning and actual Production associated with Orders/Concts.
• Batch Production Control, which is the basis for tracing production batches in the future.
• Production requirements are often changed, so planning, preparation (personne, materials, machinery,...) and production implementation must also be changed accordingly.
• Must decompose the Production Order to each stage with a suitable production output based on the inventory balance of each Stage of Semi-Finished Products.
• Must balance Materials for production, allowing the replacement of Materials at the time of Planning and be the basis for controlling Materials for Production later.
• Must support the Production Planning Department to make an automatic production plan based on the productivity of production resources (machinery/manpower/...) according to each specification of the product code according to the production stage.
• Good support for Quality (QC) work at production stages.
• Statistics of Production Results on the line at each stage of production and actual Consumable Materials for each stage of production.
• The Planning Department can instantly track the production progress, the expected production progress based on the actual production and the expected delivery time. Support the department to plan which scenario is suitable to meet the committed progress based on the actual situation (Hork time, increase production resources,...)
   

For Machine and Equipment Management:

• It is necessary to have a maintenance plan for machinery and equipment.
• Plan and implement maintenance in accordance with the production plan.
• Must anticipate the need for regular and unexpected materials to serve the periodic maintenance and repair, quickly fix unexpected machine failures.
• Must have a history of maintenance, maintenance, repair of machinery and equipment along with a list of suppliers of supplies, equipment, transaction history, price, delivery time,...
• It is necessary to have information data about the number of operating hours of the machine, the number of stampings of the mold, etc. to warn of the maintenance needs of machines and equipment, prevent unexpected failures.
   

EXPERT ERP SOLUTION​

With in-depth knowledge and experience in research, analysis and development of Enterprise Resource Planning (ERP) Solutions in Europe. We build ExpertERP Solutions according to advanced technology, international standards with a process that both meets the multidisciplinary direction and can solve specific problems and intensive management requirements by industry.

With a team of experienced experts, it has been successfully deployed for many FDI businesses and domestic businesses of the paper packaging industry in Vietnam. ExpertERP Total Management Solution applies to all business - production activities of enterprises, thanks to the application on a single platform of systems, software and databases, the flow of information data ensures transparency, seamless, instant, accurate. Allow access to data and statistics, instant reports, "Anytime - Anywhere - On any device", support the Leadership to make timely and correct decisions.

The Covid 19 pandemic situation will continue to have a bad impact and cause many difficulties for the production - business activities of businesses in general, the paper packaging industry in particular. However, this is a favorable time for businesses to stabilize, re-regulate all activities, and move towards a comprehensive "DIGITAL TRANSFORMATION" of the company. If you want to be highly capable of improving management, increasing labor productivity, and increasing profit margins, you must digitize all core activities of the enterprise, which is the Application of ENTERPRISE RESOURCE PLANNING SOLUTION (ERP). With successful deployment experience for many businesses in the industry, GMC's Expert ERP Solution will help your business achieve these key goals.

EXPERT ERP ENTERPRISE RESOURCE PLANNING SOLUTION MODEL

• Manage all potential and traditional customer information, allow marketing and advertising campaigns to be carried out according to company policies.
• Manage all care activities, exchange-work information, customer pursuit of the marketing - sales team. Help manage "Design & manufacture sample products" activities, calculate the planned cost & expected delivery time to build a price list according to customer requirements.
• Support the sales department to track the production progress according to each management order and determine the delivery time based on the actual production to help increase the quality of customer service.
• Help manage all supplier information, transaction history, price, payment policy, delivery, product warranty service quality, supplier evaluation.

• Support the Purchasing Department to make a purchase and supply plan based on the company's general business & production plan. Help track and manage orders from the time of purchase to the time of return to the warehouse, quality inspection, warehouse.
• Support the Human Resources Department to manage all employee information, shift division, timekeeping, salary calculation, bonus, social insurance-health insurance-personal income tax, ... Establish, evaluate and monitor personal productivity targets (KPI) for each department, department.
• Support in building Sales - Purchasing - Supplying - Production Plans.
• Automatic planning of production plans based on the production capacity of each production resource in the factory by the ability to determine the productivity of machinery/manpower/tools according to each product Spec in each stage.
• From the production plan according to order/contract (Make to order) or production into the warehouse (Make to stock), it is possible to immediately refer to the data on available inventory; ordered goods; goods on the way to the warehouse; semi-finished products (in stock; on the line), ... calculate resources (Materials-Suppliance-Machinery-Workers-Time) to meet the production requirements of the order/contract or warehouse.
• Especially production statistics by stage by mobile app, simple, easy to use, instant and accurate data, helping the Board of Directors have "real time" aggregate data to make timely and correct decisions.
• All production - business data entered by departments and departments will be run to the Accounting-Finance Department to check, verify, calculate inventory, costs, profit and loss, balance cash flow and expenditure, loans, investment, ... immediately advise when the Board of Directors needs reporting data.