{"id":9673,"date":"2021-08-12T10:35:52","date_gmt":"2021-08-12T17:35:52","guid":{"rendered":"https:\/\/www.qad.com\/blog\/?p=9673"},"modified":"2021-08-12T13:17:09","modified_gmt":"2021-08-12T20:17:09","slug":"erp-aids-your-sustainability-initiatives","status":"publish","type":"post","link":"https:\/\/www.qad.com\/blog\/2021\/08\/erp-aids-your-sustainability-initiatives","title":{"rendered":"ERP Aids Your Sustainability Initiatives"},"content":{"rendered":"<p>[vc_row][vc_column][vc_single_image image=&#8221;9676&#8243; img_size=&#8221;full&#8221;][vc_column_text]<span style=\"font-weight: 400;\">Sustainable manufacturing refers to the ability to manage manufacturing operations \u201cin an environmentally and socially responsible manner,\u201d according to the <\/span><a target=\"_blank\" href=\"https:\/\/www.oecd.org\/about\/\" rel=\"noopener\"><span style=\"font-weight: 400;\">Organization for Economic Cooperation and Development<\/span><\/a><span style=\"font-weight: 400;\">. If you\u2019re reading this blog in 2021, you know about the increasing importance of sustainability and reduced environmental impact with fires in the western US, excessive flooding in Europe and a recent Canadian heat wave. And, whether you believe these recent events to be the result of global warming \u2013 or not \u2013 manufacturers are expanding their sustainability and environmental efforts. Consider a few examples:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In the beginning of 2021, <\/span><a target=\"_blank\" href=\"https:\/\/finance.yahoo.com\/news\/apple-modify-executive-bonuses-based-215410854.html\" rel=\"noopener\"><span style=\"font-weight: 400;\">Apple<\/span><\/a><span style=\"font-weight: 400;\"> announced executive bonus modifications based on environmental values.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In 2020, <\/span><a target=\"_blank\" href=\"https:\/\/www.coca-colacompany.com\/content\/dam\/journey\/us\/en\/reports\/coca-cola-business-environmental-social-governance-report-2020.pdf#page=35\" rel=\"noopener\"><span style=\"font-weight: 400;\">Coca-Cola<\/span><\/a><span style=\"font-weight: 400;\"> achieved a goal to reduce relative carbon emissions by 25% by 2020, against a 2010 baseline, and is now working on further reductions.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a target=\"_blank\" href=\"https:\/\/corporate.ford.com\/microsites\/integrated-sustainability-and-financial-report-2021\/environment\/index.html\" rel=\"noopener\"><span style=\"font-weight: 400;\">Ford<\/span><\/a><span style=\"font-weight: 400;\"> highlighted a 40% reduction in their carbon footprint over the past decade through improved energy efficiency and conservation at facilities and in manufacturing processes.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In their 2020 sustainability report, <\/span><a target=\"_blank\" href=\"https:\/\/www.whirlpoolcorp.com\/commitment-to-delivering-environmental-social-change-2020-sustainability-report\/\" rel=\"noopener\"><span style=\"font-weight: 400;\">Whirlpool<\/span><\/a><span style=\"font-weight: 400;\"> announced record low levels of energy and water intensity in their plants.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a target=\"_blank\" href=\"https:\/\/www.saint-gobain.com\/sites\/saint-gobain.com\/files\/ri20_sg_230621_va_bd_0.pdf\" rel=\"noopener\"><span style=\"font-weight: 400;\">Saint-Gobain<\/span><\/a><span style=\"font-weight: 400;\"> highlighted the avoidance of over 10 million tons of virgin raw materials (sand, gypsum), in their 2020 report.\u00a0\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In 2020, <\/span><a target=\"_blank\" href=\"https:\/\/www.biogen.com\/en_us\/yir-environment.html\" rel=\"noopener\"><span style=\"font-weight: 400;\">Biogen<\/span><\/a><span style=\"font-weight: 400;\"> committed to transitioning to an all-electric vehicle fleet by 2025 and joined the EV100 partnership to help catalyze change.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">Sustainability Objectives for Manufacturers<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">We will see the continued adoption of a wide range of sustainability efforts across manufacturing verticals, from automotive to food and beverage to life sciences. The sustainability trend goes beyond businesses that may have positioned themselves as \u201cgreen\u201d primarily for marketing benefits. Like the companies highlighted above, many manufacturers now have published objectives and separate sustainability reports or incorporate the information in annual reports. The benefits go beyond brand allegiance to include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Improved operational efficiency with reduced waste and costs<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Increased competitive advantages and access to new customers<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Enhanced long-term business viability<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Improved responsiveness to new and existing regulatory requirements<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">Where Does ERP Come into Play with Manufacturer Sustainability Efforts?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Today, manufacturers view <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2020\/02\/manufacturing-erp-plays-key-role-for-sustainability\" rel=\"noopener\"><span style=\"font-weight: 400;\">sustainability as a required corporate strategy<\/span><\/a><span style=\"font-weight: 400;\"> for long-term business viability and success. And, many of these companies utilize Enterprise Resource Planning (<\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/what-is-erp\" rel=\"noopener\"><span style=\"font-weight: 400;\">ERP<\/span><\/a><span style=\"font-weight: 400;\">) to boost production efficiency, better coordinate demand and supply, track waste and strive for more sustainable practices and efficiency. Let\u2019s cover just three areas where ERP drives greater sustainability:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Responsible Sourcing<\/b><span style=\"font-weight: 400;\"> \u2013 <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/manufacturing-erp\" rel=\"noopener\"><span style=\"font-weight: 400;\">Manufacturing ERP<\/span><\/a><span style=\"font-weight: 400;\"> systems support efforts to identify responsible, sustainable sources of materials. Increasing numbers of global manufacturers have instituted objectives to boost the number of suppliers that meet defined social and environment standards. Taking Ford as an example from the companies above, Ford is working with key suppliers in China, India, Thailand and South Africa to eliminate over 4,900 metric tons of CO2 and 24 million gallons of water usage over the next three years. As companies include more sustainable <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/documents\/data-sheets\/qad-sourcing.pdf\" rel=\"noopener\"><span style=\"font-weight: 400;\">sourcing<\/span><\/a><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"> efforts within their procurement and supply chain operations, ERP plays a key role in accurately analyzing, evaluating and monitoring suppliers to ensure the right choices are made to meet sustainability goals and preserve resources.<\/span><\/span>&nbsp;<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Waste Reduction<\/b><span style=\"font-weight: 400;\"> \u2013 Nobody likes waste, especially manufacturers. It\u2019s a constant area of focus to eliminate waste throughout an organization and drive continuous improvement. Lean techniques have played a key role over the years to improve operational performance and save money. Many ERP systems support lean approaches to drive efficiency and reduce waste resulting in a lower carbon footprint by doing more with less. In other examples, you\u2019ll find ERP provides the necessary insights and metrics, like <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2019\/09\/actionable-insights-oee-action-center-overview\" rel=\"noopener\"><span style=\"font-weight: 400;\">OEE<\/span><\/a><span style=\"font-weight: 400;\">, to enhance <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/documents\/data-sheets\/manufacturing\/production-execution.pdf\" rel=\"noopener\"><span style=\"font-weight: 400;\">production execution<\/span><\/a><span style=\"font-weight: 400;\">.<br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Supply Chain Efficiency<\/b><span style=\"font-weight: 400;\"> &#8211; <\/span><span style=\"font-weight: 400;\">The <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/solutions\/demand-supply-chain-erp\" rel=\"noopener\"><span style=\"font-weight: 400;\">supply chain<\/span><\/a> <span style=\"font-weight: 400;\">is another area with room for improvement to advance sustainability efforts. The complexity of global supply chains, lack of communication with trading partners and the rush to meet on-time delivery requirements results in unnecessary greenhouse gas emissions. Consider the effects of excess inventory and unnecessary shipments. Having comprehensive control over the movement of stock and orders helps manufacturers combine orders and reduce inefficient shipments. Practitioners know that inefficient logistics activities increase the supply chain carbon footprint and, at times, cannot be avoided. By improving supply chain collaboration and effectiveness, the number of lifetime miles material or a product travels can be reduced and CO2 emission savings achieved.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Sustainability is a topic of growing importance for customers, investors, governments and manufacturers across the globe. Ultimately, enhancing manufacturing and supply chain sustainability boosts a company\u2019s reputation with the ethical sourcing of materials, reducing waste on the shop floor and across the organization, and showing genuine concern for the environment. And, ERP can \u2013 and does \u2013 play a strong role. Sustainability drives growth when companies commit to more sustainable practices and establish effective strategies and meaningful objectives. What is the current status of your sustainability initiatives? How would you like those initiatives to progress?<\/span>[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[vc_row][vc_column][vc_single_image image=&#8221;9676&#8243; img_size=&#8221;full&#8221;][vc_column_text]Sustainable manufacturing refers to the ability to manage manufacturing operations \u201cin an environmentally and socially responsible manner,\u201d according to the Organization for Economic Cooperation and Development. If you\u2019re reading this blog in 2021, you know about the increasing importance of sustainability and reduced environmental impact with fires in the western US, excessive flooding [&hellip;]<\/p>\n","protected":false},"author":53,"featured_media":9676,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[182,199],"tags":[1771,9,1773,15,112,1772,24,1402,1774,1713,396,1770,1261,524],"class_list":["post-9673","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-manufacturing-trends","tag-carbon-emissions","tag-cloud-erp","tag-competitive-advantages","tag-enterprise-resource-planning","tag-erp","tag-green-business","tag-manufacturing","tag-operational-efficiency","tag-responsible-sourcing","tag-supply-chain-efficiency","tag-sustainability","tag-sustainable-manufacturing","tag-sustainable-practices","tag-waste-reduction"],"yoast_head":"<!-- This site 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