Huhtamaki uses predictive analytics for business insights

The packaging firm is adopting IoT and RFID along with predictive analytics to transform the business digitally

UDIT PAHWA

HUHTAMAKI PPL

By eliminating human interface, the chances of errors and record-keeping are reduced. The person, who spent around two hours a day in entering data manually, can be now utilised in other production activities. Adding such initiatives improve efficiency and productivity of a business resulting in higher revenues and margins.

For Udit Pahwa, Head-IT of flexible packaging major Huhtamaki PPL Ltd, the main challenge is to predict consumer behaviour and accordingly invest for future.

So how does one predict future? Pahwa says this is where technology steps in. “We are actively looking at predictive analytics and then sourcing the behavioural aspects of consumers which, in turn, gets analysed for the next business benefits we can derive,” he shares, adding that the business owners are coming forward and partnering with the technology team in transforming the business digitally.

To achieve the same, Huhtamaki PPL has undertaken three major digital projects including inventory tracking using IoT (Internet of Things) and RFID, digitally managing the assets in a bid to get easy access to the customer files and manage all the issues digitally including digital asset management solution. The company is digitising its entire shop-floor records to capture the data in real time. This was done manually earlier.

Pahwa says these initiatives, where the asset management system has been moved to the digital platform, have helped in reducing the error of sending a wrong file and therefore, resulting in error in production.

On legacy infrastructure, Pahwa says it would become completely redundant in the coming decade. Huhtamaki PPL, an Indian subsidiary of Finish packaging major Huhtamaki, is now moving to Cloud infrastructure.

On the changing role of CIOs, Pahwa puts in that that they are now seen as a business partner who contribute to the top and bottom line and are not just providers or enablers of infrastructure. CIOs, these days, have an important say in all types of business decisions, be it about global expansion or acquisitions.

As businesses across the world are turning towards technology, CIOs can play a vital role in providing a competitive edge and help the company achieve targets, expand into newer markets and open new areas of revenue growth.

Huhtamaki has, in the last few years, made two acquisitions - Valpack Solutions Pvt Ltd, a privately held paper cup manufacturer based in Mumbai for a debt-free price of about 2 million ($2.2 million) and Mumbai-based Positive Packaging, makers of flexible packaging products with nine manufacturing facilities in India and the United Arab Emirates for $336 million then.

Huhtamaki Group has 72 factories and 23 sales offices in 34 countries with around 17,000 employees and net sales totalling 2.865€ billion in 2016. The company makes packaging products for food and beverages sectors as well as non-food sectors such as consumer products, electronics and healthcare.