A packaging system includes a cushioning conversion machine for converting stock material into relatively low density cushioning material or dunnage and a packaging system controller. The packaging system controller provides packaging instructions related to a part or parts to be packaged and instructs the cushioning conversion machine to produce the cushioning material. In one aspect of the present invention the packaging system controller provides packaging instructions by retrieving a predetermined set of packaging instructions associated with a particular part. In another aspect of the present invention the packaging system controller provides packaging instructions by determining an optimized packaging methodology using one or more characteristics of the part or parts to be packaged. The packaging system also provides for automated inventory control and productivity monitoring.