Artificial intelligence (AI) simulates human intelligence, predicting future conditions with the help of sophisticated algorithms and computing power. In order to “see” potential outcomes, AI programs and applications analyze large volumes of data, recognizing patterns and correlations that help AI predict what might happen next. The game-changing technology has widespread applications, including uses within the contract packaging industry.
Groundbreaking technological advances offer opportunities to transform business operations. As artificial intelligence capabilities expand, AI solutions are reshaping commerce in several key areas. Among the experts embracing artificial intelligence, forward-looking contract packagers and supply chain professionals are eager to leverage the benefits of AI.
A recent PMMI Business Intelligence Report, entitled “Transforming Packaging and Processing Operations” indicates most packaging and processing industry executives surveyed at the 2024 Top to Top Summit showed a desire to integrate AI solutions into their business operations.
Artificial Intelligence Gains Momentum in the Contract Packaging Industry
The recent groundswell of interest in AI technology extends into the packaging industry, yet many contract packaging companies are still in the early stages of investing in AI solutions. Information gathered at the Top to Top Summit confirmed that despite executive support for the technology, many packaging industry AI projects are still in the research and development stages, with other AI efforts just getting off the ground.
Cost savings, efficiency improvements, and overall equipment effectiveness are key areas where AI is expected to shine, yet obstacles remain for packagers integrating AI. Learning where to best apply AI and how to secure information are critical concerns for innovative packaging professionals tasked with tapping the benefits of artificial intelligence technology.
AI applications offer benefits on manufacturing floors as well as office suites. Contract packaging companies utilizing AI on the production floor may turn to the technology for predictive maintenance, quality control, and automating repetitive tasks. Many packagers expanding their commitments to artificial intelligence presently utilize AI outside production, in areas such as customer service, sales, marketing, and human resources, as well as planning and forecasting.
In some cases, early AI success has empowered packaging companies to invest in the technology’s future, expanding the role of artificial intelligence above and beyond their initial vision for AI in the contract packaging industry. Top to Top participants identified logistics optimization, operational improvements, and flow simulations as a few of the areas they’d explore for future AI application.
AI Predictive Maintenance for Packaging Operations
AI creates operational efficiencies previously unavailable to contract packagers. Production equipment maintenance, for example, traditionally requires excessive downtime, harmful to the bottom line. With the help of AI technology, it is possible to streamline maintenance processes, resulting in production efficiencies and cost savings.
Proper machine maintenance once followed preset inspection schedules. Operators regularly ceased production to inspect equipment and replace machine components, following a predetermined preventative maintenance calendar. Although thorough, the practice often results in unnecessary idle time for packaging and manufacturing equipment. AI-enabled predictive maintenance minimizes unnecessary down-time associated with preventative maintenance, using data-driven insight to predict maintenance and replacement needs.
Representing one of the most common AI packaging applications utilized in 2023, a survey found 71% of respondents already using some form of predictive maintenance technology at their packaging and processing plants. The number was up from a similar study conducted just 2 years prior, which indicated only 45% of those queried were utilizing AI to help predict maintenance needs.
Sensors on machines provide game changing insight, allowing operators to monitor key parameters in real time. Sensors trained on vibration, temperature, pressure and other metrics provide data, which is then analyzed using machine learning algorithms. The cutting edge AI practice leads to cost savings and reduces overall maintenance budgets, enabling operators to identify performance patterns and avoid both costly breakdowns and unnecessary maintenance stoppage. Moreover, as AI continues learning from performance data, predictive maintenance solutions grow even more accurate and efficient over time.
Key AI Applications for Contract Packaging Companies
AI enables packaging companies and their manufacturing partners to automate complex and repetitive processes. The technology also helps contract packagers enhance and streamline operations in various ways, including the following packaging practices in which AI increasingly plays a role.
Inventory Management and Supply Chain Optimization
AI provides real-time data-driven insight, which would otherwise be out of reach for most supply chain stakeholders. By analyzing vast volumes of historical information and then making informed predictions about the future, AI-powered applications accurately predict demand patterns, which in turn supports efficient production and inventory management practices. In addition to tracking sales, inventory, and market trends, AI and blockchain technologies in packaging can also yield shipping efficiencies, furnishing route optimization algorithms that reduce transport costs.
Customization and Personalization
Analyzing consumer data identifies user preferences, enabling packaging companies to offer custom solutions, based on AI insights. The technology supports consumer engagement and brand loyalty, providing the information required to efficiently cater to personal preferences.
Quality Control and Material Inspection
AI helps packagers streamline inspection and quality control practices. AI vision systems efficiently scan packaging materials for damage and defects, reducing the number of faulty items shipped. By ensuring quality standards are met, AI-powered quality control reduces turnaround times and inspection expense, without sacrificing accuracy and consistency. Advanced AI solutions can also tell shippers which packaging methods are most effective and reliable for transporting particular items, based on data drawn from prior shipping outcomes.
Advanced Robotics
Smart robots enhance accuracy and precision during manufacturing. The AI-backed technology leads to faster production speeds for producers and packagers, without giving up high quality output. Whether the intelligent robots pick, place, or package items, the AI-driven machines free workers to complete other important tasks. Smart robots use AI to learn and adapt, making the machines very versatile for contract packaging projects.
Date Labelling
AI and machine learning can help companies reduce or eliminate mislabeled goods, guarding against inspection failures and financial losses due to avoidable human error. Used in date labeling applications, AI raises the reliability standard, reducing food waste and customer complaints, while increasing efficiency.
Contract Packaging Companies are Just Getting Started with AI
Machine learning and artificial intelligence have widespread applications across the packaging industry. Contract packagers already use the technology to improve customer support, streamline production processes, and generate logistics efficiency. These benefits offer a glimpse of AI’s potential, which has only begun to transform contract packaging practices.
As packaging contractors and their supply chain partners continue embracing machine learning and data-driven AI solutions, the technology is raising the packaging standard for producers and consumers.
