Why the Packaging Industry Needs Robust ITAM and EAM Systems

With AI, packaging companies can analyze sensor data from IoT-enabled machinery to detect patterns and anticipate potential issues before they escalate. © chokniti – stock.adobe.com

And How AI is Transforming Them

By Syed Ali, co-founder and CEO of EZO

The packaging industry, a cornerstone of global supply chains, is facing unprecedented challenges. From increasing consumer demands to the rising complexity of operations and mounting pressure to meet sustainability goals, companies are navigating a landscape that requires transformation.

At the heart of this transformation lies the need for robust IT Asset Management (ITAM) and Enterprise Asset Management (EAM) systems. When augmented by artificial intelligence (AI), these systems offer solutions that enable packaging companies to achieve efficiency, reduce costs, and unlock innovation like never before.

Asset Management Systems

Packaging companies depend on a mix of digital and physical assets. Digital tools, such as design software and Internet of Things (IoT) enabled devices, are critical for planning and monitoring operations. At the same time, physical assets like high-capacity machinery and warehouses form the backbone of production.

Managing these assets effectively is both a challenge and an opportunity. Operational downtime, for instance, can cost manufacturers significant revenue. A report by Aberdeen Research estimates that unplanned downtime costs manufacturers an average of $260,000 per hour — a staggering loss for an industry that often operates 24/7.

At the same time, regulatory compliance remains a priority for packaging firms, especially those serving industries like food and beverage or pharmaceuticals. Mismanaged assets increase the risks of non-compliance, potentially resulting in costly penalties. Meanwhile, the growing demand for sustainable operations highlights the need to minimize waste, improve efficiency, and reduce environmental impacts.

A Unified Approach

Packaging companies can address these challenges by implementing ITAM and EAM systems with a unified approach. ITAM systems ensure digital assets are optimized for efficiency, tracking software licenses and IoT devices to prevent unnecessary costs and ensure compliance.

EAM systems, on the other hand, enable businesses to manage physical assets such as machinery, production lines, and facilities more effectively. They provide a comprehensive view of asset performance, empowering companies to extend the equipment lifecycle and avoid costly breakdowns.

Together, ITAM and EAM deliver a holistic framework for managing both digital and physical resources, but it is the integration of AI that truly elevates their impact. AI is transforming how asset management systems operate by introducing predictive capabilities, real-time decision-making, and data-driven insights.

The Role of AI

Predictive maintenance is a prime example of AI’s potential. Traditional maintenance schedules rely on reactive or time-based models, which can lead to inefficiencies and unexpected failures. With AI, packaging companies can analyze sensor data from IoT-enabled machinery to detect patterns and anticipate potential issues before they escalate.

According to McKinsey, AI-powered predictive maintenance can reduce maintenance costs by 20 to 25 percent and unplanned downtime by up to 50 percent. For the packaging industry, this means fewer disruptions, higher productivity, and improved equipment reliability.

AI also enhances resource allocation by analyzing historical usage data to optimize how digital and physical assets are deployed. This capability reduces waste and maximizes return on investment, enabling companies to make smarter decisions about their resources.

AI is helping the packaging industry meet sustainability goals by identifying inefficiencies that contribute to waste, energy consumption, and emissions. By optimizing production schedules, streamlining processes, and recommending eco-friendly packaging designs, AI not only reduces costs but also supports environmental responsibility.

The integration of AI into ITAM and EAM systems also facilitates real-time decision-making. For example, if a production line sensor detects a potential fault, AI can analyze the data and recommend immediate corrective actions, minimizing downtime and preventing further damage. Additionally, AI simplifies regulatory compliance by automating asset tracking and reporting, reducing the burden of manual processes and lowering the risk of errors.

Investing in these advanced systems is no longer optional for the packaging industry—it is essential. While cost may seem like a barrier, the long-term benefits far outweigh the initial investment.

Advanced Asset Management Solutions

Companies that adopt robust ITAM and EAM systems often see measurable returns within months. A study by Deloitte found that organizations implementing advanced asset management solutions reported a 10 to 15 percent improvement in operational efficiency within the first year. Similarly, Accenture reports that companies using AI in asset management have reduced waste and emissions by 30 percent, aligning with the industry’s sustainability goals.

The ability to adapt to changing demands is crucial. Packaging companies with robust asset management systems enhanced by AI are better positioned to navigate disruptions, seize new opportunities, and deliver high-quality results to customers.

Failing to invest in these systems could disadvantage companies, as outdated processes and equipment become liabilities in an era of rapid technological advancement.

Looking ahead, the packaging industry will continue to benefit from advances in ITAM and EAM systems. As AI capabilities evolve, these systems will become even more sophisticated, incorporating machine learning algorithms that improve performance predictions over time and augmented reality tools that assist technicians in performing maintenance. Such innovations will enable packaging companies to operate with greater precision, sustainability, and agility, ensuring they remain competitive in an ever-changing landscape.

The packaging industry is at a pivotal moment. To thrive in the face of rising demands and new challenges, companies must embrace the future of asset management. Robust ITAM and EAM systems powered by AI offer the tools to survive and excel. In this industry, where every second, resource, and decision counts, the time to act is now.

About the Author

As the Founder and CEO of EZO, Syed Ali leads a dynamic team dedicated to helping organizations achieve their true potential through optimal asset management and intelligence solutions. At EZO, we’re passionate about simplifying complex business processes. Our easy-to-use digital solutions provide a transparent, single source of truth for your assets, optimizing critical workflows and driving better business agility. Learn more: https://ezo.io