Facing the challenges and causes of climate change and reducing energy emissions have become a major concern for both businesses and governments. And, while approaches such as electric cars and the UK’s Clean Growth Strategy are a step in the right direction, much remains to be done. Many private organisations are trying to reduce greenhouse gas emissions, while others are trying to reduce their fuel consumption to help meet their target. Whatever the reason for their efforts, much of the solution lies in cutting back on excess waste in today’s complex supply chains.
Businesses need to be aware that sustainability is not just a concern for businesses and regulators. Consumers are also becoming more environmentally conscious, so companies trying to reduce their carbon footprint are in a position to benefit from higher sales and increased customer loyalty.
The transition to an environmentally friendly business model means tackling the increase in unnecessary waste in the supply chain. According to experts, overproduction and over-purchase of materials can account for five to eight percent of all waste. Poor inventory management and unnecessary transport of goods are also major waste in the supply chain. Any activity that results in pointless stock movements will increase the carbon footprint of the supply chain without good reason.
How ERP Software Helps
Business management solutions, such as enterprise resource planning (ERP) or material requirements planning (MRP), create seamless communication between sales, planning, inventory, store floor, procurement, administration, and finance. ERP software solutions provide instant updates and analytics, which in turn increases efficiency and transparency throughout the supply chain.
How is it good for the environment? Management systems, such as ERP or MRP, synchronise supply with demand while monitoring losses and waste. Companies can now think about relocating production, packaging and possibly other operations to bring production closer to customers.
Millions of companies have already turned to ERP software to make their processes more efficient and profitable. These companies also understand that the same functions that increase their results also help them achieve environmental goals, such as reducing CO2 emissions and reduce waste.
Reduce Fuel Consumption and CO2 Emissions
Fuel efficiency starts with forecasting and planning tools that help companies optimise full container transport. Without these management tools, the cost of shipping partially filled containers and wasted fuel will pay for the organisation and the environment. On the other hand, advanced demand planning that includes real-time visibility saves money and reduces emissions.
Fuel-saving strategies are also based on smart route management when delivering products. ERP software helps companies develop efficient route schedules to achieve optimal fuel economy, better driver efficiency and less damage to the environment.
Manufacturing software (eg ERP or MRP) makes it possible to anticipate requirements and deliver the right goods in the right quantities to the right place more efficiently. The main goal is to minimise deficiencies and reduce the costs of ordering, transporting and storing goods, thus saving fuel and reducing emissions.
Going Paperless
Reducing a company’s dependence on paper is good for the environment. Paper-based organisations are less efficient, more prone to error, and have a slow decision-making cycle. ERP software minimises typical paper paths and increases functional visibility, resulting in improved decision-making at every level of the organisation.
ERP solutions no longer require the use of paper for sales orders, purchase orders, packing slips, invoices, reports, shipping and confirmation messages, and many other documents. Switching to a paperless business saves your business money and is a green solution. It is more efficient and increases the number of people who have access to the information they need with just a click of the mouse.
MRP software enables your business to integrate data across the organisation by creating detailed, paperless reports for advanced business information and decision making. ERP solutions provide businesses with easy-to-use tools and database mining capabilities to generate, store, and retrieve information as needed. Printing and storing paper reports is a thing of the past, as is the large carbon footprint they help create.
Minimising Returns and Charge-Backs
Retailer compliance issues can be painful for both your business and the environment. Although these charge-backs can significantly drain profits, they also leave a large carbon footprint due to the return and re-shipment of the product. Manufacturing ERP software helps you solve these complex retail problems by enabling refund collection, validation, contesting, and recovery.
Production Software Helps the Environment and your Business
Cutting-edge MRP or ERP solutions are green because they improve business processes from sales to shipment. In the meantime, they help burn less fuel and remove most of the paper you once needed for everything from slipping to bills. By investing in a high-quality ERP system, you can optimise your approach to energy efficiency while facilitating the transition to technology that helps you change the way you communicate with the environment, save money and raise your brand image – all at the same time!
For more information about this topic, please see: MRP vs. ERP: Which Solution is Right for You?
