Huhtamaki to leverage digitalization to unlock sustainability

Huhtamaki’s approach towards increasing efficiencies of core business

414
Huhtamaki
Antti Valtokari executive vice president, IT and Process Performance

Finnish packaging giant Huhtamaki sees digitalization as an essential lever that will help the company achieve its ambition of becoming the first choice in sustainable packaging solutions, said Antti Valtokari, executive vice president, IT and Process Performance, in a recent blog. 

Digital technologies and data provide an important transformative driver for the food packaging industry,” he said. “Enabling us to make our core business more efficient, from operations to sales management, unlocking opportunities in the way we collaborate with our customers and suppliers and how we design our packaging to be smarter and sustainable.”

Digitalization can help the company in three ways:

  • Improving our operational performance.
  • Enabling us to serve our customers better.
  • Helping design for circularity through smart packaging with sustainability at its center. 

Valtokari said that Huhtamaki had set ambitious goals for digitalization in its 2030 Strategy – by 2030, it will have 100% of its production sites and equipment digitized and connected; have 100% of its worldwide customer transactions digital; ensure 100% of packaging has a digital identity.

Huhtamaki on improving operational performance – digitalization in production

The potential impact of digitalization is clear both in how the company organizes and how it runs operations. Digital improvements in its manufacturing units – such as the use of real-time machine data, preventative maintenance, and automated material flows – will lead to potentially significant improvements in inefficiency. The same initiatives will help continuously improve the sustainability of operations, Valtokari said.

Serving our customers better – digitalization in customer transactions

Digitalization will enable Huhtamaki to create added value for its customers as it will digitally integrate its customer-facing processes with those of the customers. 

“We see potential in building our digital capabilities to create a better customer experience for existing and new customers, whose transactions with us – from quotes and order confirmations to invoices – will be electronic,” he said. “Simply put, by digitalizing our activities, we will become the first-choice partner for many customers because we will be the company easiest to do business with within our industry.”

Exploring new business growth avenues at Huhtamaki – smart packaging

According to Valtokari, digitalization also touches on the design of smart packaging.

“At Huhtamaki, we foresee printed tags and codes that enable packaging to have a true digital identity to provide substantial added value,” he said. “One of the key values in smart packaging is the easy access to information on the raw materials used in the packaging, which facilitates easier recycling, customer engagement with the content and traceability of the origin of the product.” 

Smart packaging goes beyond printed tags, codes, and other potential features; it can unlock sustainability and contribute to circularity, he added. 

“Today, we are actively exploring our role in providing these types of digital services to our global customers in the future,” he said. “We see the future alive with possibility and digitalization playing a transformative role in our ability to deliver on our 2030 Strategy. The pace of change is accelerating, and we are excited about the possibilities this brings in terms of protecting food, people, and the planet.” 

Packaging South Asia — resilient, growing and impactful — daily, monthly — always responsive

The multi-channel B2B in print and digital 17-year-old platform matches the industry’s growth trajectory. The Indian, South Asian, Southeast Asian, and Middle East packaging industries are looking beyond the resilience of the past three years. They are resuming capacity expansion and diversification, with high technology and automation in new plants and projects.

As we present our 2024 publishing plan, India’s real GDP growth for the financial year ending 31 March 2024 will exceed 6%. The packaging industry growth will match the GDP growth in volume terms and surpass it by at least 3% in terms of nominal growth allowing for price inflation in energy, raw materials, consumables, and capital equipment.

The capacity for flexible film manufacturing in India increased by 45% over the past four years. With orders in place, we expect another 20% capacity addition in 2024 and 2025. Capacities in monocartons, corrugation, aseptic liquid packaging, and labels are grown similarly. As the consumption story returns over the next six months, we expect demand to return and exceed the growth trajectory of previous years. The numbers are positive for most of the economies in the region – and as shown by our analytics, our platform increasingly reaches and influences these.

For responsible and sustainable packaging, with its attendant regulations and compliances, there is significant headroom to grow in India and the region. Our coverage includes the entire packaging supply chain – from concept to shelf and to waste collection, sorting, and recycling.

We target brand owners, product managers, raw material suppliers, packaging designers and converters, and recyclers. This is a large and complex canvas – the only thing that can work is your agile thinking and innovation together with our continuous learning and persistence.

The coming year looks to be an up year in this region, and this is the right time to plan your participation and marketing communication – in our rich and highly targeted business platform with human resources on the ground. Share your thoughts and plans and to inspire and mobilize our editorial and advertising teams!

For editorial info@ippgroup.in — for advertisement ads1@ippgroup.in and for subscriptions subscription@ippgroup.in

– Naresh Khanna (25 October 2023)

Subscribe Now
unnamed 1

NEWSLETTER

Subscribe to our Newsletter

LEAVE A REPLY

Please enter your comment!
Please enter your name here