For decades, manufacturing execution systems (MES) have been the steadfast operational core for many in the paper and packaging industry. These systems, often developed 20 to 30 years ago, have been meticulously customized to the unique demands of our production environments, from pulp processing to papermaking to intricate converting and printing lines.
The reality is that many legacy MES solutions, while functionally rich, are technologically antiquated. The skilled individuals who possess the deep knowledge to maintain and adapt these systems are gradually heading into retirement, creating a critical knowledge gap.
Moreover, these robust but rigid systems are struggling to keep pace with the rapid IT advancements we’re witnessing elsewhere, particularly in the ERP space with the rise of generative AI and intelligent agents. The highly specific design that made them powerful now makes them inflexible in the face of new opportunities.
This technological lag isn’t just an operational concern; it also impacts cyber-resilience. Outdated systems can present security vulnerabilities, a factor increasingly scrutinized by banks and investors during company valuations, potentially affecting financial standing and investment appeal.
Managing a volatile landscape of tariff uncertainty demands more than just reactive adjustments; it requires a proactive, strategic approach focused on building resilience and optimizing operations.
Historically, the primary focus of MES-ERP integration was on transactional efficiency–think seamless production order confirmations and goods movement postings. While this remains important, the advent of AI has dramatically shifted the spotlight towards achieving easy, unified, and semantically rich data provisioning.
Solutions like SAP Business Data Cloud embody this approach. SAP Business Data Cloud aims to prevent data replication, thereby preserving the original business context and semantics of the data, avoiding the costs associated with data extraction, and ultimately saving time, resources, and effort.
Paper and packaging companies have been accumulating vast amounts of production data for years, if not decades. This data is the fuel for powerful AI scenarios that can unlock new levels of competitiveness.
Imagine being able to accurately predict which customer order configurations are most likely to cause production issues, or identifying subtle process deviations that impact quality before they escalate. This requires a more comprehensive and accessible data strategy than many current MES architectures can support.
The temptation might be to simply replace an old MES with a newer, off-the-shelf MES. However, this like-for-like replacement may not be enough to achieve all the benefits that new technologies promise.
Instead, a fundamental rethink of the MES-ERP relationship is required. It’s time to break down the traditional silos and envision a true “top-floor-to-shop-floor” solution.
This involves critically assessing which functionalities are best suited to reside within the ERP versus the MES.
For instance, quality management, often a core MES function, is increasingly being migrated to ERP systems. This makes sense, as ERPs typically house crucial data and processes related to customer order requirements, certificate generation, and overall compliance – data that’s essential for a holistic quality approach.
The dynamic advancements in gen AI, and the future promise of agent-based systems, offer significant potential for optimizing manufacturing operations. To remain competitive, the paper and packaging industry must be able to leverage these innovations.
Bespoke, in-house developed MES platforms will find it increasingly challenging to keep pace with this technological evolution and offer the necessary openness and scalability.
Pulp and paper companies have an opportunity to lead the way for sustainability in manufacturing by focusing on five key areas.
Recognizing this need, SAP has adopted an approach for its MES solutions that mirrors the successful strategy used in its ERP systems. SAP Digital Manufacturing (DM) is conceived as an open and adaptable MES platform.
SAP provides the core functionalities, estimated to be around 80-95%, forming a broad foundation that caters to a wide spectrum of manufacturing processes, including mill, discrete, and chemical industries. This approach, which transcends specific industries, results in a broader user base and fuels continuous innovation, development, and technological advancement through cross-sector insights.
Then, a rich ecosystem of partners delivers in-depth, industry-specific capabilities. This collaborative model ensures that the MES solution is always at the forefront of technology (including AI capabilities), aligns with the latest data and process best practices, and meets stringent compliance and cyber-resilience requirements—a critical factor in our industry.
Importantly, this approach also offers flexibility in user interface design, process workflows, and data model extensions, allowing for precise tailoring to the unique demands of paper and packaging, such as complex labeling, cutting, printing and tracking processes.
SAP partner Delaware’s DM4MILL solution implements this architectural vision. The solution was built on SAP Digital Manufacturing and offers a comprehensive MES tailored specifically for mill products industries, showing how a core platform can be expertly extended to meet deep vertical needs.
Similarly, SAP partner CONCIRCLE offers add-ons through their conMILL Suite for SAP Digital Manufacturing, also designed specifically for mill products industries. SAP partner T.CON is pursuing a comparable strategy, leveraging SAP’s digital manufacturing platform to deliver specialized MES capabilities for die rolls and format manufacturing.
Their work, for instance, in addressing how SAP Digital Manufacturing can handle intricate trim and cutting processes, highlights the practical application and benefits of this modern approach.
The MES systems that have served the paper and packaging industry so well are reaching an inflection point. Continuing with technologically outdated, siloed systems is a path towards diminishing returns and increased operational risk.
The future lies in embracing integrated, open, and intelligent platforms that can harness the power of data and AI. By rethinking the MES-ERP relationship and looking towards collaborative, platform-based solutions, a new era of manufacturing excellence and sustained competitiveness in the paper and packaging sector can be paved.
Editor’s Note: This article first appeared in Paperitalo and is republished here with permission.
