3M rolls out software for the packaging buy
Staff -- Purchasing, 6/2/2005 2:00:00 AM
Most purchasing operations don't have a good handle on their companies' packaging buy, and it isn't entirely purchasing's fault, says Mary Kroening, product development manager at 3M Integrated Packaging Management.
Before assuming her current post, Kroening had responsibility for purchasing packaging globally at 3M. It was in that role that she helped develop software that provides purchasing with insight into the company's packaging buy, the 3M Integrated Packaging Tool. 3M is rolling out the latest version of the software internally; it is expected to help reduce costs associated with the packaging buy by $40 million over five years.
As Kroening sees it, many manufacturers are struggling to decrease costs associated with the packaging buy. They're also looking to drive faster time-to-market and to better enforce branding and other business rules related to packaging.
At most companies, systems used to manage packaging are document based. At the same time, none of the systems are connected, making communication between departments responsible for packaging related activities virtually impossible.
The 3M Integrated Packaging Tool is a centralized, Web-based, data-enabled system that helps manage the entire packaging process. Using structured, relational data, the tool provides users visibility to a very granular detail that, for purchasing professionals, helps identify redundancy for strategic sourcing.
With the 3M Integrated Packaging Tool, purchasing has visibility to what packaging materials are being purchased across the company. Using the software tool's structure library, for example, purchasing can drill down to data on one kind of packaging. The system has capability to generate reports from which purchasing can export the data to Excel software for further analysis such as identifying potential redundancies. With the data, the purchasing operation can determine areas where consolidation (of materials or suppliers) may be most beneficial.
For more information on the 3M Integrated Packaging Tool, go to www.3M.com/IPM.
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