How a modern ERP system in SMEs promotes sustainability
Today, companies not only have to be financially successful. Applicants, employees, customers and investors demand more sustainable business practices. A modern ERP system can play a key role in this.
The role of the ERP system has changed massively in recent years, from pure enterprise resource planning to the backbone of digital transformation. More recently, it has taken on yet another key position: as the central hub for more sustainable business management. The software manufacturer proALPHA describes the areas in which a modern ERP system already contributes to greater environmental protection.
A modern ERP system saves paper
Even if completely digitized operations remain a vision: Companies that handle as many processes as possible via the ERP system save paper and thus actively contribute to the protection of forests. In administration, for example, this can be achieved through digital processing of incoming invoices. Likewise, outgoing invoices should be converted to e-invoices wherever possible. Where this is not yet possible, companies can at least ensure CO2-neutral dispatch. But even in production today, a lot still runs on paper - from parts lists and work schedules to feedback. Mobile store floor data collection (PDC) not only puts an end to paperwork, it also shortens throughput times.
Minimize resource consumption
Sustainable resource management involves using materials as effectively, economically and profitably as possible. A modern ERP system addresses this issue in several areas, for example through intelligent production planning. Orders can be combined in such a way that as little waste as possible is produced, for example in punching or laser cutting. Quality assurance with real-time data processing helps to minimize production errors and rejects: another component for reducing material consumption.
However, sustainable production does not only include low material usage. Those who want to avoid excess inventory can, for example, manufacture in smaller batches down to batch size 1. Automated production planning takes over resource planning and brings together the right amount of material at the right time with the right tools and the right personnel.
On the way to a circular economy
With the help of product lifecycle management (PLM), companies can take the first step towards a circular economy. The basic building block for this is a functioning supplier management system. This is the only way to prevent the verification of sustainable and ethical production conditions along the supply chain from turning into a paper battle. In addition, a modern ERP system allows complete traceability of batches and series back to the material source.
This goal is also supported by predictive maintenance: And not only because the service life of products and machines can be extended. Predictive maintenance also prevents unnecessary replacement of spare parts and thus excessive material consumption. In addition, the desire for greater sustainability is giving rise to new business models, from rental and pay-per-use models to take-back and remanufacturing. Manufacturers - and ERP systems - must increasingly adapt to this.
Smarter on the road
Today, more and more companies are working on practical and environmentally friendly mobility concepts for their employees. One central component: remote work. After all, those who work from their home office save themselves many trips to the office. In addition, the use of modern project management tools integrated into the ERP system makes many on-site appointments and thus business trips unnecessary. The up-to-date information that is so important for distributed teamwork can be accessed there at any time and from anywhere. ERP systems also support efficient intralogistics: For example, a real-time location system (RTLS) quickly shows unnecessary routes and transports.
Modern ERP system helps reduce energy consumption
As digitization progresses, energy requirements in data centers are increasing. In the future, it will therefore become increasingly important to use computing and storage power sensibly. Therefore, only the data that is really needed should be collected and stored. In addition to saving data, integrated, modular ERP systems also prevent redundant data storage in distributed applications and thus make a further contribution to saving energy.
The transformation to more sustainable operations involves changes in all areas. Many of them affect the core processes and thus the ERP system. The goal of sustainability can therefore hardly be achieved without up-to-date software.
Source: proALPHA
