The topic of sustainability is now on the agenda of almost all companies. All in all, there are various levers for industry to act ecologically, conserve resources, save energy and expand environmental protection. Even if it may sound far-fetched at first, an ERP system can also make a significant contribution to sustainability in companies. This article sheds light on why this is so.
Why should companies focus on sustainability in production?
Sustainability and the protection of our environment are topics that are attracting more and more attention. In the meantime, this development is affecting the entire economy. For many business and private customers, not only the price plays a role in their purchase decision.
They now also make sure that their suppliers produce sustainably. Or to put it another way: Those who do not operate sustainably will lose their buyers and thus their competitiveness in the medium term. This is where digitization in the form of ERP (Enterprise Resource Planning) comes into play.
Professional business software can not only help companies to implement efficient processes. An ERP system also supports those responsible in bringing sustainability into the processes and making production more ecological.
At a glance, it is in particular the following changes that ERP software can bring with it with regard to sustainability:
- Improve machine utilization
- Better planning of production (avoidance of overproduction and overlay) – Improved ordering and optimized logistics
- Implement paperless processes
Let’s take a closer look at these aspects below.
Improved machine utilization through ERP
ERP solutions bring transparency with regard to the current order situation. Especially with an ERP that has been specially developed for industry, granular production planning can also be realized on this basis. This can be designed in such a way that machine utilization is improved and resource-wasting idle times are eliminated. This in turn results in lower energy consumption, which makes the company more sustainable.
Optimized production planning with a focus on protecting the environment
An ERP system with integrated production planning also helps production planners to better control the production volumes in their company. Above all, they are enabled to dimension the quantities in such a way that there is no overproduction.
This avoids that valuable resources end up unused in the garbage due to non-acceptance. In addition, some ERP systems are able to design production in such a way that as little waste as possible is generated. For example, waste can be minimized by machining or punching.
Improved ordering and sustainable logistics – thanks to ERP software
Enterprise Resource Planning Software also shows its strengths in scheduling, warehouse management and purchasing. Based on existing customer orders and stock levels, a good ERP system can automatically determine optimal order quantities and order times. In particular, order quantities can be selected in such a way that climate-damaging individual deliveries no longer take place.
With an ERP, companies can not only produce sustainably, but also significantly reduce the volume of paper. This applies not only to production, but to all areas of the company. If a CRM module is also integrated into the software, the paperless processes can even be extended to the customers.
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