How smart logistics can minimize downtime and boost productivity in plastics manufacturing 

This figure underscores the importance of efficient logistics for plastics manufacturing companies, which rely heavily on uninterrupted production lines and timely material delivery. If you're struggling with frequent downtime or productivity issues, you might need smart logistics. Smart logistics refers to the use of data-driven digital tools and technologies to drive efficiencies in logistics processes. 

These tech-enabled solutions can help your company overcome common operational challenges, reduce production interruptions and create more streamlined processes from start to finish. 

Lack of proper inventory management is a major cause of production interruption and downtime in plastics manufacturing. Leveraging smart logistics can help your company operate smoothly in several ways: 

Reducing the risk of stockouts and increasing visibility 

Companies that lack an integrated ecosystem of logistics technology often fail to track stock levels and can often face sudden stockouts of raw materials and components. This leads to idle time for employees and equipment as there are no materials for the production process. When this happens, your company will be forced to place urgent orders at an additional cost.  

Smart logistics helps optimize stock levels and minimize the risk of overstocking and stockouts. This minimizes holding costs and decreases the risk of production slowdowns caused by material shortages.  

By partnering with a reliable logistics services provider, you can implement a transportation management system (TMS) and integrate it with your enterprise management system (ERP), inventory management system (IMS) and warehouse management system (WMS) to create visibility across your supply chain. This increased visibility will help you better manage your inventory and keep your stock at optimum levels, alerting you when you are low on stock or are on the verge of overstocking.

Streamlining production  

Leveraging smart logistics can help your company avoid unnecessary production challenges. Innovative logistics solutions offer real-time inventory optimization using predictive analytics, which involves anticipating stock needs and potential challenges in advance. 

Predictive analytics allows you to optimize material flow and keep production running smoothly without interruptions, even when demand is high.  

Ensuring steady materials supply 

Smart logistics can help your company ensure materials are readily available when needed, preventing costly delays and disruptions. Integrating technologies like radio frequency identification (RFID) into your ERP helps you monitor incoming and outgoing stock and optimize inventory. The aim is to ensure a consistent supply of materials, which is crucial for ongoing production.   

Enhancing operational efficiency with real-time data  

Investing in smart logistics can help plastics manufacturing companies achieve enhanced supply chain visibility and timely delivery of crucial supplies in the following ways: 

Management of lead times 

One of the biggest challenges your company might face is supplier unreliability. Some suppliers might keep extending the lead time, which could disrupt production. Intelligent logistics solutions such as a TMS offer effective and practical ways to combat these issues, such as real-time tracking of shipments. That way, you'll know where different materials are at any given moment and make the necessary adjustments. 

Improvement of communication with suppliers 

Utilizing a TMS can also enhance communication with suppliers. By leveraging real-time track-and-trace functionality, Electronic Data Interchange (EDI), Application Programming Interface (API) and text connectivity with carriers and suppliers, your TMS can help minimize or even eliminate the need for time-consuming phone calls and emails.  

Data-driven demand forecasting to optimize production planning 

According to research journal Heliyon, investing in intelligent and data-driven logistics solutions helped manufacturing companies experience a 9.44 percent increase in growth in 2024. Your plastics manufacturing company is not an exception. Investing in smart logistics solutions can help your company manage product demand and fulfill customer orders in a timely manner. These solutions can help in the following ways:  

Reduce the risk of underproduction 

If your company produces fewer units than the current demand, you might end up having an urgent need for raw materials. Consequently, you might have to pay additional costs to expedite deliveries, and your production workers might have to work overtime, leading to productivity issues. 

Data-driven demand forecasting using smart logistics helps to optimize inventory and production, eradicating the risk of underproduction.

Prevent overproduction and high stock holding costs 

Producing more units than sales can lead to storage problems, and your company might have to rent additional warehouse space to store items. Smart logistics solutions provide data-driven demand forecasting. With smart logistics, you can more accurately anticipate future sales, which can guide you in the optimum number of units to produce. 

Building supply chain resilience: Essential advantages for plastics manufacturers 

Building a tech-enabled supply chain for plastic manufacturers has several advantages. In addition to a more resilient supply chain, additional benefits include: 

• Reduced impact of disruptions: A resilient supply chain helps your company better handle disruptions while minimizing costs. Disruptions can come from unforeseen events like political unrest, natural disasters, shortages of raw materials and supplier failures.

• Enhanced customer satisfaction: Customers become loyal if you consistently keep your promises and meet their needs. Failure to fulfill customer orders could lead to strained relationships, loss of brand loyalty and losses due to missed sales opportunities. 

• Brand reputation: Supply chain resiliency helps safeguard your brand reputation by helping you identify and address issues before they become crises. 

Using predictive analytics to optimize production scheduling 

Predictive logistics entails the use of past data to forecast demand changes, materials costs and other trends that impact production. Generally, predictive analysis helps to:  

Improve service 

Predictive analytics can optimize the movement of raw materials and finished goods, minimizing the risk of stockouts that can negatively impact your customer relationships.   

Manage risk 

Managers can use data-driven information to manage and mitigate supply chain interruptions. Identifying possible risks in advance helps managers to plan ahead, optimize their supply chains and avoid losses. 

Enhance business agility 

A data-driven approach can give your company a considerable edge over competitors. You can make informed inventory management and production decisions, which enhances your productivity. The data can also enhance your company's agility, allowing you to adapt quickly to change. 

Embrace smart logistics for optimized plastic manufacturing 

Implementing smart logistics can help your plastic manufacturing company reduce downtime and boost productivity. These solutions can streamline inventory and equipment management and provide invaluable data you can utilize to forecast demand and create effective production schedules. 

To enhance your visibility and control of your supply chain, consider partnering with a tech-enabled Third-Party Logistics (3PL) or Fourth-Party Logistics (4PL) that can help you implement a TMS and integrate your critical business systems. You might discover, like countless businesses before you, that it’s simply the “smart” thing to do.