Biggest Challenges for Packaging & Container Companies in Enabling Supplier Collaboration & Automating Purchase Order (PO) Processes

EDITOR’S NOTE: I have recently completed a preliminary analysis of Packaging & Container Companies’ challenges to enable greater supplier collaboration and automation around the purchase order process, including PO confirmations, shipment notices, and price/quantity changes.

In the first part of this post, I will discuss at a high level the challenges this industry sector currently faces.

In the second part, I will provide a reasonably detailed outline of how these same challenges were successfully addressed in the past and which providers are best positioned to address them today.

Biggest Challenges for Packaging & Container Companies in Enabling Supplier Collaboration & Automating Purchase Order (PO) Processes

The packaging & container industry faces increasing pressure to streamline procurement, enhance supplier collaboration, and automate key purchase order (PO) processes, including PO confirmation, shipment notices, and price/quantity changes. However, several challenges hinder progress in this area.

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🔹 1. Fragmented Supplier Networks & Lack of Standardization

✅ Why It’s a Challenge:

• Packaging companies work with diverse suppliers, including raw material providers (paper, plastics, metals), logistics partners, and contract manufacturers.
• Many suppliers use different ERP systems, leading to data inconsistencies and manual work in PO processing.

✅ Impact on PO Automation & Collaboration:

• Difficulties in real-time data exchange for PO confirmations, shipment tracking, and pricing updates.
• Mismatch in data formats (EDI, XML, CSV, PDFs, email) creates delays and errors in processing supplier responses.

✅ Solution Trend:
🔹 Adoption of cloud-based supplier collaboration platforms that integrate with multiple ERP systems via APIs.

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🔹 2. Manual PO Management & Limited Digital Adoption

✅ Why It’s a Challenge:

• Many packaging companies still rely on email, phone calls, and spreadsheets to manage purchase orders.
• Limited adoption of procurement automation tools leads to delayed approvals and frequent human errors.

✅ Impact on PO Automation & Collaboration:

• Slow PO confirmations from suppliers due to manual processing.
• Inconsistent tracking of shipment notices and delivery updates.
• High risk of pricing errors due to lack of automated alerts for changes in raw material costs (paper, plastic, etc.).

✅ Solution Trend:
🔹 Increased use of AI-driven procurement tools that enable automated order matching, supplier self-service portals, and real-time PO updates.

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🔹 3. Supply Chain Volatility & Pricing Uncertainty

✅ Why It’s a Challenge:

• The packaging industry is highly affected by commodity price fluctuations (paper pulp, resin, aluminum).
• Suppliers frequently adjust pricing and quantity commitments, but these changes aren’t always updated in procurement systems in real time.

✅ Impact on PO Automation & Collaboration:

• Mismatch in PO price vs. invoice price, leading to disputes and reconciliation delays.
• Disruptions in production planning due to last-minute changes in order quantities or shipment delays.
• Lack of visibility into supplier commitments, increasing procurement risks.

✅ Solution Trend:
🔹 Integration of dynamic pricing models and real-time price monitoring AI into procurement systems.

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🔹 4. Compliance & Regulatory Complexities

✅ Why It’s a Challenge:

• Packaging companies face strict environmental and sustainability regulations (e.g., recyclable materials, carbon footprint tracking, extended producer responsibility (EPR)).
• Supplier compliance tracking for ethical sourcing and material certifications remains largely manual.

✅ Impact on PO Automation & Collaboration:

• Delays in PO approvals and supplier selection due to compliance verification issues.
• Lack of real-time supplier risk insights, leading to reactive issue resolution instead of proactive risk management.

✅ Solution Trend:
🔹 Implementation of blockchain-based supplier verification and AI-driven compliance tracking.

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🔹 5. Resistance to Change & Supplier Adoption Barriers

✅ Why It’s a Challenge:

• Many small & mid-sized suppliers lack the technical capability to integrate with automated procurement systems.
• Internal procurement teams may resist automation due to fear of job displacement or reliance on legacy workflows.

✅ Impact on PO Automation & Collaboration:

• Slow onboarding of suppliers onto digital procurement platforms.
• Limited data accuracy due to continued manual entry of PO confirmations and shipment notices.
• Pushback from suppliers that don’t see clear ROI in integrating with packaging companies’ procurement systems.

✅ Solution Trend:
🔹 Offering low-code/no-code supplier portals and AI-powered OCR tools that extract PO details from emails, PDFs, and invoices without full system integration.

How Can Packaging Companies Overcome These Challenges to Enable Supplier Collaboration & Automating Purchase Order (PO) Processes

Regarding the industry’s main goals to enable more supplier collaboration and automation around the purchase order process, including PO confirmation, shipment notices, and price/quantity changes, I know you will find the parallel with this video worthwhile – https://youtu.be/49BS-MkGoak.

Also, check out this recent post and the corresponding graphic – The Evolution of the Agent-Based AI Operating System.

The foundations for addressing the challenges described above were firmly established and proven with the DND in 1999. One of the companies that has built on those foundations and taken them to a next-generation capability in 2025 is ConvergentIS. If you want to learn more about this or other ProcureTech solution providers, drop me a line, as I am continuing my research.

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