The four major challenges are raw material and inventory management, production planning, wastage and costing control, and order, quality, and delivery management.
1. How Can Corrugated Box Manufacturers Control Raw Material and Inventory?
Raw material management is one of the biggest challenges for corrugated box manufacturers.
Kraft paper, test liner, fluting paper, adhesives, inks, stitching materials, and other consumables need to be available when production starts. At the same time, maintaining excessive inventory can increase working capital requirements.
Manual inventory management can create problems such as:
- Incorrect stock information
- Overstocking and understocking
- Difficulty tracking paper rolls
- Unplanned purchasing
- Material shortages during production
- Stock discrepancies
- Higher inventory carrying costs
- Difficulty identifying slow-moving materials
A corrugated ERP software system provides centralized inventory visibility.
How ERP solves inventory management problems
An ERP system can track material purchases, receipts, consumption, transfers, returns, and available stock from a single platform.
For example, when a new production order is created, the system can help identify the required raw materials and compare them with available inventory. Purchasing teams can use this information to plan procurement before materials become critical.
This creates a more controlled material flow from purchasing to production.
For businesses using software for corrugated box industry operations, real-time inventory visibility can also improve coordination between stores, production, purchasing, and management.
2. Why Is Production Planning Difficult in the Corrugation Industry?
Corrugated manufacturing involves multiple processes and machines. Depending on the product, the workflow may include corrugation, printing, slotting, cutting, stitching, gluing, folding, bundling, and dispatch.
Production planning becomes complicated when manufacturers handle multiple customer orders with different specifications, quantities, paper combinations, sizes, printing requirements, and delivery dates.
Common problems include:
- Machine scheduling conflicts
- Production delays
- Poor capacity utilization
- Last-minute changes
- Incomplete production information
- Excessive setup time
- Difficulty prioritizing urgent orders
- Communication gaps between departments
How ERP improves production planning
A specialized ERP system can connect sales orders with production planning.
Once an order is confirmed, production teams can view specifications, quantities, required materials, planned operations, and delivery requirements.
Managers can use production dashboards to monitor:
- Planned production
- Completed production
- Pending jobs
- Machine utilization
- Production status
- Job delays
- Rejected quantities
- Pending dispatches
This makes production planning more systematic and reduces dependence on manual coordination.
A good ERP for corrugated industry operations can therefore help manufacturers move from reactive production management to planned production management.
3. How Can ERP Reduce Wastage and Improve Corrugated Box Costing?
Wastage directly affects profitability.
Paper waste can occur during cutting, corrugation, printing, slotting, die-cutting, setup, rejected production, or incorrect production planning.
Even a small amount of additional wastage across thousands of production orders can significantly affect manufacturing costs.
Another challenge is accurate job costing.
Manufacturers need to understand the actual cost of producing each order, including:
- Raw materials
- Paper consumption
- Printing
- Labour
- Machine time
- Power and overheads
- Wastage
- Outsourced processes
- Packaging and handling
Without accurate data, manufacturers may quote prices based on estimates rather than actual production costs.
How ERP helps control wastage and costing
A corrugated ERP can capture planned versus actual material consumption.
For every production order, management can analyze:
Planned material → Actual consumption → Production output → Wastage → Final cost
This provides better visibility into production efficiency.
ERP-based costing can also help businesses compare estimated job costs with actual costs. If a particular product consistently generates higher wastage or production costs, management can investigate the reason.
This helps manufacturers make better pricing decisions and identify opportunities to improve margins.
FEFCO’s recent industry data also highlights the importance of understanding material inputs and outputs in corrugated production. Its 2024 life-cycle inventory data reports paper input and recycled paper outputs for corrugated board production, demonstrating why material tracking is important for both efficiency and sustainability.
4. How Can Corrugated Manufacturers Manage Orders, Quality, and On-Time Delivery?
Customers expect the correct box specifications, quantity, quality, and delivery date.
A delay in one production stage can affect the entire delivery schedule.
For manufacturers managing hundreds of orders, manually tracking customer requirements can become difficult.
Typical problems include:
- Missed delivery dates
- Incorrect box specifications
- Production bottlenecks
- Quality inconsistencies
- Poor communication between departments
- Difficulty tracking order status
- Dispatch delays
- Customer complaints
How ERP improves order and quality management
ERP creates a centralized record for each customer order.
Sales teams can enter customer specifications, quantities, pricing, delivery dates, and other requirements. Production teams can then access the same information without repeatedly requesting details from the sales department.
Quality teams can record inspection results and identify rejected or reworked quantities.
Management can monitor the complete order journey:
Quotation → Sales Order → Material Planning → Production → Quality Check → Finished Goods → Dispatch → Invoice
This improves transparency and helps businesses identify bottlenecks earlier.