Confronting the challenges and causes of climate change and reducing energy emissions have become the main concerns of both businesses and governments.
And while approaches such as electric cars and the UK’s Clean Growth Strategy are steps in the right direction, there is still much to be done.
Many private organizations are attempting to reduce their greenhouse gas emissions, while others are trying to cut their fuel consumption to help their bottom line. Whatever their reason for making an effort, much of the solution lies in trimming the excess waste that is created in today’s complex supply chains.
Companies need to be aware that sustainability is not just the concern of businesses and regulators. Consumers are also becoming more environmentally conscious, so businesses that are attempting to reduce their carbon footprint are putting themselves into a position to benefit from higher sales and increased customer loyalty.
Transitioning to an environmentally friendly business model means addressing the increase in unnecessary waste in your supply chain. A good starting point is to become more accurate in forecasting your production needs. Over-production and over-purchasing of materials can account for five to eight percent of total waste, according to estimates from experts.
Poor inventory management and the unnecessary transporting of goods are also among the biggest wastes in the supply chain. Any activities that result in the pointless movement of inventory will increase the carbon footprint of the supply chain for no good reason.
Manufacturing Software to the rescue
Business management solutions, such as Enterprise Resource Planning (ERP) or Material Requirements Planning (MRP) are creating seamless communications among sales, planning, inventory, the shop floor, procurement, administration, and finances. MRP solutions offer instantaneous updates and analytics, which in turn produces greater efficiency and transparency throughout the entire supply chain.
How does this benefit the environment? Management systems, such as MRP, synchronize supply with demand while tracking loss and waste. Companies can now think about re-shoring production, packaging, and possibly other operations, which will bring manufacturing closer to their customers. The multi-functional data these organizations receive from their MRP systems allow them to make basic improvements to their supply chains, which can reduce their emission levels significantly.
Millions of businesses have already turned to MRP software as their choice to streamline their processes for better efficiency and profitability. These companies also realize that the same features that boost their bottom lines are also helping them to meet their green goals such as reducing CO2 emissions and landfill waste.
Here are some steps that almost any business can take to have sustainable ERP success and create their environmental legacy:
Reduce or eliminate the paper trail
Shrinking your company’s dependence on paper is beneficial for the environment. Organizations that rely on paper are less efficient, more susceptible to errors, and have slow decision-making cycles. MRP software will minimize the typical paper trails and increase cross-functional visibility, resulting in enhanced decision-making at every level of the organization.
With MRP solutions, there will be no need to use paper for sales orders, purchase orders, packing slips, invoices, reports, shipping and confirmation notices, and a host of other documents. Transitioning to a paperless business will save your business money, and it’s also a green solution. It’s more efficient and expands the number of people who will have access to the information they need with nothing more than the click of a mouse.
MRP software allows your company to integrate data throughout the organization, producing detailed paperless reports for improved business intelligence and decision-making. MRP solutions give businesses easy-to-use tools and database mining capabilities to generate and store information and retrieve it whenever they need it. Printing and storing reams of paper reports are a thing of the past, as is the large carbon footprint they help to create.
Decrease fuel costs and CO2 emissions
Efficient fuel use begins with forecasting and planning tools that assist companies in optimizing full-container shipments. Without these management tools, the cost of shipping partially-filled containers and the wasted fuel take a toll on the organization and the environment. On the other hand, improved demand planning that includes real-time visibility saves money and reduces emissions.
Fuel-saving strategies also revolve around smart route management for delivering products. ERP software can help businesses develop efficient route schedules for optimum fuel economy, better efficiency from drivers, and less damage to the environment.
Because of Manufacturing Software such as ERP or MRP, it’s possible to anticipate demands and deliver the right goods, in the right quantities, to the right locations more efficiently. The overriding goal is to minimize shortages and reduce the costs of ordering, transporting, and storing goods, thus saving fuel and reducing emissions.
Reduce your carbon footprint by minimizing returns and chargebacks
Compliance issues with retailers can be painful — both for your company and the environment. With the help of Manufacturing Software, your company can automate compliance processes and lessen unnecessary returns. While these chargebacks can be a substantial drain on profits, they also leave a large carbon footprint because of product returns and re-ships. Manufacturing Software helps you manage those complex retail issues by enabling the capture, validation, dispute, and recovery of chargebacks.
Manufacturing software helps the environment and your business
Top-of-the-line MRP solutions are “green” because they streamline business processes from sales to shipping. In between, they help you burn less fuel and eliminate most of the paper that you once needed for everything from routing slips to invoices.
By investing in high-quality manufacturing MRP system, you can optimize your approach to energy efficiency, while easing the transition to the technology that will help you change how you interact with the environment, save you money, and boost your brand reputation–all at the same time!