The 3 key environmental benefits of ERP systems

We’re all doing what we can for the environment in our personal lives – putting up with the texture of paper straws, trying to remember to bring our huge collection of “bags for life” to the shop, taking fewer long-haul flights (nothing to do with not being able to go abroad for the last couple of years, of course).  

This has also translated into sustainability within our businesses, and not just for the environment’s sake. Consumers are becoming more environmentally conscious, so companies ahead of their competition in reducing their carbon footprint are already benefitting from higher sales and increased customer loyalty. 

While swapping to electric vehicles and encouraging commuters to use public transport are a step in the right direction, it barely scratches the surface. As we’ve been told for a long time, much of the solution lies in cutting back on excess waste – and the supply chain is one of the worst contributors. 

According to experts, overproduction and over-purchase of materials can account for five to eight percent of all waste. Poor inventory management, unnecessary transport of goods and any activity that results in pointless stock movements will increase the carbon footprint of the supply chain – but this can be avoided.

Optimising transport is key to reducing fuel consumption and CO2 emissions. Poor forecasting and planning leads to partially filled vans, unnecessary trips and ultimately, wastage in terms of time and money. 

Smart route management – such as the iQ Transport Scheduler module – enables the creation and management of efficient delivery routes to maximise fleet utilisation, therefore optimal fuel economy, better driver efficiency and less damage to the environment. 

Simple things, such as automated order acknowledgements by email can have a dramatic effect on reducing returns – less returns means less fuel and improved customer service.