A flexible packaging company in spite of being in the business of manufacturing flexible packaging for decades, found itself trapped in the inelastic legacy financial management system. The company authorities turned to Research Nester seeking its services for developing strategies for an elastic legacy financial management system.
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The company was in the business of manufacturing plastic packaging and industrial films for its clients for around 67 years. Its client list included top packed food, and different companies which uses plastic packaging in the U.S and Canada.
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However, its reputation and reliability went for a toss, when their inelastic legacy financial management caused the company loss. In the past, plastics manufacturers have had to use paper and excel to manage production of products.
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The company’s huge plastics manufacturers require high precision for accurate costing and pricing calculations, the accounting and operations systems are relatively straight forward.
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Although the company did everything under its realm and outside, to prevent the extent of the damage, still there were serious repercussions that dented its market position.
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To prevent any similar future mishap, the company authorities turned to Research Nester to devise an elastic legacy financial management strategy that would safeguard its financial management against security threats and protect sensitive information.
The Company, a flexible packaging company with a strong market position unexpectedly detected the presence of inelastic legacy financial management. Growing rapidly through acquisition, the company needed to replace an inelastic legacy financial management system. Requiring high precision manufacturing calculations, multi-company, multi-location support. In terms of precise costing, while plastics producers are demanding a high degree of precision pricing calculations, the accounting and operations systems are relatively straight forward. Historically, manufacturers of plastic products used to use paper and excel to manage the production of the products. Specifications for precise design, including a gusset, width of roll, density and the costs and prices of any flexible packaging product are determined by its materials. Not being able to accurately track the inventory's movement into and out of the accounting It took a lot of time to reconcile the booking with the actual use of the inventory, manual process. Research Nester offered a customized solution in the form of a report on the flexible packaging market. It provided a detailed analysis related to advanced technological solutions for boosting elastic legacy financial management in companies. In addition, RNPL consultants also devised a framework of financial management measures to facilitate strong and updated software systems.
The major pain point of the company’s financial management was that it had not been updated and lacked patching a few vulnerabilities. Hence, it became an inelastic legacy financial management. Research Nester consultants suggested the revamping of the company’s financial management practices in the following ways-
In addition, RNPL analysts also suggested the flexible packaging market could engage in partnerships with or employ renowned Software accounting firms to conduct independent financial management. This way the company could obtain certifications and demonstrate its commitment to elastic legacy financial management. This would help the company to win the loyalty of its customers back.
The flexible packaging company had a strong market position as of Dec 2021. With 19 plants around the country, the company serves the flexible packaging needs of a diverse set of customers – from farmers to fortune 3200 associates. The company’s products include stretch film for the pallets, industrial film, drum liners, dry cleaner bags, mesh fruit bags, food packets and much more. As part of the Dynamics GP implementation, the partner company’s team created the reports to tie out inventory and sales for each of the 50 company’s family companies, managed as separate entities. The system allows the accounting team to close all the books within 10 days each month. At this point, Research Nester was asked to use its experience and expertise in the field to bring the company back on track. By incorporating the strategizes as advised by Research Nester consultants, there was a gradual improvement in customer acquisition. Since the company showed ingenuity in its efforts to prioritize its elastic legacy financial management, its clients became ready to give it a second chance. The formation of the elastic legacy financial management causes the increase in the manufacturing of the product which causes the market growth of the industrial packaging market. Flexible Packaging Market size is estimated to reach USD 100 Billion by the end of 2035 by growing at CGAR of 5% over the forecast period. In addition to this, in the year 2022, the market size of industrial packaging was USD 65 Billion.
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