PPWR in ERP: Do You Know What Packaging Actually Leaves with Each Customer Order?

A customer places an order. The item has its own primary sales packaging; in the warehouse, an employee places it into a shipping carton and adds void fill to ensure it arrives safely. The company knows what was sold and when the order was dispatched. But could it just as easily determine the exact types and quantities of packaging materials shipped with that order?

Sales packaging data might reside on the product card, box specifications in supplier documents, and void fill consumption buried in general packing rules. As a result, packaging reports are compiled using estimates or manually stitched-together spreadsheets. With the new EU PPWR, it becomes increasingly critical for companies to know where their packaging data originates and whether it reflects reality. This is precisely where connecting product data, warehouse management, and shipping inside an ERP system provides real value.

PPWR is the new European regulation on packaging and packaging waste. It applies to all packaging placed on the EU market, regardless of material or origin. Therefore, it affects far more than just box or bottle manufacturers. Companies that package their own goods, import packaged items, or prepare shipments for dispatch are equally subject to its rules.

Let’s return to our order example. The product features primary packaging whose material composition is known by the supplier or production department. However, the ERP product master card often records only the total gross weight of the packaged item. Data specifying the weight of the cardboard, foil, or plastic tray remains stranded in technical datasheets, emails, or separate spreadsheets.

In the warehouse, the next phase begins. Based on order volume, a worker selects a shipping box and adds void fill or protective wrap. For larger consignments, a pallet and stretch film are added. The ERP logs the issue of inventory and the dispatched sales order, but it does not automatically capture the exact packaging materials consumed during packing. Planned packaging usage frequently deviates from real-world execution.

When compiling packaging reports, the company is forced to consolidate data from three distinct sources: product development/suppliers, warehouse operations, and sales orders. If packaging specifications or packing procedures change in the meantime, stored data can become obsolete without anyone noticing. The fundamental question is not just "How much packaging did we purchase?", but "Which packaging materials were used on the products and shipments that actually left for our customers?" Answering this requires linking packaging data directly to operational workflows.

Let's start with the packaging itself. For every part of it, it is useful to know what material it consists of, how much it weighs, and whether it is sales, grouped, or transport packaging. A single box does not necessarily mean a single material: it can contain paper, a plastic window, a label, and adhesive tape. Information on the total weight of the packaged product is therefore not enough for working with packaging. Another layer is the link to the product and its variant. The same product can be sold in several package sizes or for different markets. A company should therefore know which packaging belongs to a given variant and from when this assignment is valid. If this information is managed by the product team in multiple places, unifying it in a product data management system can help.

However, data on planned packaging alone does not tell you what happened during shipping. It is necessary to know the number of dispatched products, transport packaging used, and potentially additional material added in the warehouse. A difference can arise, for example, when several items are combined into one shipment or a warehouse worker uses a different box size. For reusable packaging, information on its issue, return, and further use is added. For sales to multiple countries, it is necessary to distinguish which market the shipment is heading to.

Finally, it must be clear where the data comes from. Who confirmed the composition and weight of the packaging? Where is the current technical datasheet or declaration of conformity? How do you tell that a new packaging version has already replaced the original one? Clear record-keeping connects numerical data with its source and the responsible person. The company then sets the specific scope according to the packaging, markets, and obligations that apply to it.

Connecting data on product, purchasing, warehouse, and sales is precisely the strength of ERP. The system knows the product, its variant, order quantity, and stock movements. If correct packaging data is assigned to these records, a company can more easily determine what it planned to use, what it actually issued, and what supporting documents it has for it.

For small and medium-sized companies, Microsoft Dynamics 365 Business Central can be the starting point. Microsoft offers Extended Producer Responsibility (EPR) producer (packaging manufacturer) features for it that work with material composition and item weights when calculating fees. For a specific company, however, it is necessary to verify how to record packaging added during shipping and what outputs it needs. If the warehouse changes box size, adds void fill, or merges multiple products into one shipment during packing, it is important to capture this choice directly in the process. Without it, the calculation remains just an estimate based on the product card.

In larger enterprises, Dynamics 365 Supply Chain Management can be built upon. It allows assigning packaging materials to products or their groups and calculating their weight or fees. At the same time, it is necessary to assess whether the configured model corresponds to actual packing in the warehouse. Financial and controlling views on costs are then related to Dynamics 365 Finance. ERP can form the backbone of packaging record-keeping, but it alone will not solve incomplete data from suppliers or missing records of actual consumption in the warehouse. First, it is necessary to determine which data originates in ERP, which in other systems, and who is responsible for its accuracy.

Imagine a supplier replaces plastic void fill with paper. The change may be minor for logistics, but for packaging tracking it means new material, a different weight, and new documentation. If only purchasing specifications are updated while the product card or packing rules remain original, the company will continue calculating with outdated data.

Therefore, it is advisable to manage a packaging change like a regular product or process change. The supplier hands over current specifications, the responsible employee verifies the data, approves its use, and sets the date from which the new version applies. The product team updates product data, the warehouse adjusts packing rules, and reporting works with the correct version for the given period. If a company concurrently uses up old and new packaging, it also needs to know which variant was used in which deliveries.

Equally important is tracing what approved data is based on. Technical datasheets, declarations of conformity, and communication with suppliers can be managed in a document management system and linked to the relevant packaging or item in ERP. During an audit or another change, people then do not have to search for the right attachment in old emails.

At the beginning, you don't have to design a new system or change all packaging. Go through one regular order with the product team, purchasing, warehouse, and IT, and try to answer five questions together:

Data collected for PPWR can also answer common operational questions for a company. How much packaging material does a certain product or order type consume? For which shipments does packing differ most from the plan? And how will a change in the price of boxes or void fill affect costs?

If data is connected with purchasing, warehouse, and sales, it can help make calculations more precise and uncover wasteful consumption. Logistics gains a basis for adjusting packing rules, purchasing for negotiations with suppliers, and finance a better overview of costs. The benefit will only arrive, however, when record-keeping corresponds to what actually happens in the warehouse.