Consumers are paying closer attention to food packaging and demanding that manufacturers use more sustainable container materials. A recent global study found that 61% of U.S. consumers factor in sustainability when making buying decisions. In fact, one-third of consumers are willing to pay a premium for sustainable products, and packaging is a critical factor in the food and beverage buying journey.

In response, food container manufacturers are developing new, eco-friendly options even as the sector — which is expected to reach nearly $229 billion in global sales by the end of 2030 — grapples with new ISO and FDA compliance requirements, emerging food regulations, and a client base whose preferences change on the dime.

Addressing these shifts while maintaining growth and desired profitability isn’t easy. It can be particularly difficult for organizations that are throttled by subpar business technology.

“Many providers of aging, on-premises software just aren’t putting much research and development into their products anymore,” said Karah Finan, director of business development at Protelo, a NetSuite Partner. “As packaging companies innovate and advance, those that are stuck on aging finance and operations systems are getting left behind.”

5 Ways NetSuite Makes a Difference for Manufacturers

Many companies looking to upgrade from aging, on-premises financial and operational management systems are working with partners like Protelo to implement NetSuite, a cloud-based enterprise resource planning (ERP) platform that offers everything manufacturers need to run their end-to-end operations.

Here are five reasons food container manufacturers should consider NetSuite:

1. Demand for food containers, particularly sustainable ones, is on the rise. Manufacturers that enhance their production capacity to meet this demand will be rewarded with more business, which accentuates the need for better operations management solutions. Factors driving growth in this sector include a higher demand for packaged food products; the need for longer food shelf life, which can be improved by the right food containers; and increasing interest in eco-friendly packaging options such as bamboo food containers and paper or reusable straws.

2. Running a growing manufacturing company on spreadsheets and antiquated software is impractical. Many food container companies rely on older versions of Infor, JD Edwards, Epicor, or Sage. Outdated business systems, some of which date back 10, 20, or even 30 years, cannot keep up with today’s business needs. To gain a view of and control over their operations, many manufacturers transfer data between these systems using spreadsheets and other applications. This approach is time-consuming, manual, error-prone, and can impede a company's ability to identify and respond to challenges and opportunities.

3. Companies need to modernize their technology. On-premises systems like JD Edwards and Infor present problems for food container manufacturers. First, maintenance fees and the IT resources to maintain these systems are expensive. Second, depending on the software version, the vendor may stop support at any time. Third, older on-premises systems often don’t meet all of a growing manufacturer's needs.

Protelo was founded with the goal of servicing on-premises ERPs and became a NetSuite partner because it believed that systems delivered from the cloud were a far better solution. That bet was spot on: In 2022, 94% of companies used cloud services, and the global cloud computing market is expected to exceed $947 billion by 2026, up from $445 billion in 2021.

4. NetSuite updates are easy, consistent, and predictable. Once on NetSuite, food container manufacturers get automatic software updates twice a year and have access to a reliable, experienced support community that’s always ready to assist. These bi-annual upgrades don’t interfere with software customizations. That’s a key benefit over on-premises software, where moving to a new version of a program can sometimes require a complete reimplementation or expensive code modifications in order to keep customizations.

Manufacturers may also be concerned about outdated features and a poor user experience in their current systems. NetSuite eliminates these worries by providing consistent, predictable updates twice a year, and behind-the-scenes maintenance updates as they’re needed.

Managing supply chains is becoming increasingly challenging. Just like other manufacturers, food container makers are grappling with labor shortages, ongoing supply chain disruptions, and rising business costs. They are highly focused on quality, so every step — from the receipt of raw materials to the production process to the fulfillment of customer orders — is closely monitored. These manufacturers rely on lot numbers and serialization to track the containers that hold food for human consumption. These containers must be high quality to avoid spills or contamination. With NetSuite as its foundation, Protelo offers the necessary customizations to meet these needs.

Don’t Get Left Behind

When they implement NetSuite, food container companies that use third-party manufacturers also gain visibility into outsourcing charges, at the item level, for each contractor throughout the entire build process. Container companies can automatically generate purchase orders for each step of the outsourced engagement and add the correct charges for each purchase order.

“Manufacturers know where they’re incurring costs at each step of the process, with each vendor they work with, and can now use that information to select the lowest-cost vendor for future projects,” said Finan. “They can also correctly allocate incurred expenses to their products to generate a more accurate view of the cost of goods sold.”

As the food industry continues to evolve, companies supporting the sector need robust business management tools that help them adapt and respond. Manufacturers with cloud-based ERP platforms like NetSuite will be best positioned to take advantage of new opportunities. Those still operating on aging systems and spreadsheets will face challenges and may be left behind.

Protelo helps food container manufacturers get the most out of their NetSuite Investments. Contact us today to learn more.