| Posted by Matt Lewis It wasn't that long ago that many companies viewed "sustainability" as just another buzz word - a trendy, consultant-driven piece of business jargon destined to go the way of "synergy," "scalable" and "core competency." Sustainability is not going away. |
In fact, the push for sustainability in everything from manufacturing to sourcing to merchandising to the point of purchase has never been more intense.
Consumers want it, companies are demanding it and manufacturers are working overtime trying to figure out how to deliver it--whether in the way crops are grown or the way seams are sewn. Sustainability is here to stay. Mostly because it's about money (if consumers want it, companies will demand it), but also because of the current state of politics (countries are increasingly sensitive to global warming and other issues related to the environment).
Which is exactly why manufacturing needs ERP.
Consumers want it, companies are demanding it and manufacturers are working overtime trying to figure out how to deliver it--whether in the way crops are grown or the way seams are sewn. Sustainability is here to stay. Mostly because it's about money (if consumers want it, companies will demand it), but also because of the current state of politics (countries are increasingly sensitive to global warming and other issues related to the environment).
Which is exactly why manufacturing needs ERP.
Enterprise Resource Planning & Manufacturing
Compliance. It's becoming a four-letter word in the world of manufacturing, thanks in large part to government interest in sustainability.
Companies are increasingly being required to document everything at nearly every step in the manufacturing process. Where did the raw materials come from? Was the equipment used in the production "Earth-friendly?" Were fair labor agreements followed during the manufacturing process?
These are but a few of the questions manufacturers are increasingly being asked.
Enterprise Resource Planning (ERP) software can help a manufacturer document key information at each step in the process. And the best part is, it can be made to be highly automated.
Companies are increasingly being required to document everything at nearly every step in the manufacturing process. Where did the raw materials come from? Was the equipment used in the production "Earth-friendly?" Were fair labor agreements followed during the manufacturing process?
These are but a few of the questions manufacturers are increasingly being asked.
Enterprise Resource Planning (ERP) software can help a manufacturer document key information at each step in the process. And the best part is, it can be made to be highly automated.
Sustainability beyond what's required
These days, the government isn't the only entity out there demanding that manufacturers act in sustainable manners. Non-government organizations, individuals and companies themselves have all taken an interest in the issue.
Any of these groups or individuals, at any time, can demand proof of sustainable practices from manufacturers. Non-government agencies can do it as part of their high-profile publicity campaigns. Companies such as Target and WalMart do it as part of their regular vendor reviews. And individuals do it for a variety of reasons.
The thing is, any of these groups can cause serious problems for manufacturers. NGOs know how to make headlines to advance their agendas. Companies can stop buying products from manufacturers. And even individuals with blogs can start a firestorm of bad press for manufacturers.
Being able to quickly provide each of these groups with the information they're requesting (thanks to ERP data) can save a company a lot of headaches down the road.
Any of these groups or individuals, at any time, can demand proof of sustainable practices from manufacturers. Non-government agencies can do it as part of their high-profile publicity campaigns. Companies such as Target and WalMart do it as part of their regular vendor reviews. And individuals do it for a variety of reasons.
The thing is, any of these groups can cause serious problems for manufacturers. NGOs know how to make headlines to advance their agendas. Companies can stop buying products from manufacturers. And even individuals with blogs can start a firestorm of bad press for manufacturers.
Being able to quickly provide each of these groups with the information they're requesting (thanks to ERP data) can save a company a lot of headaches down the road.
ERP: a smart way to do business
In addition to government regulations and the fear of being punished by groups with an agenda, there is another good reason for manufacturing companies to use ERP software: It's good for business.
ERP can manage everything from supply chain procurement and management, life-cycle assessment, business planning and product strategy.
These are things every manufacturing company should be measuring anyway, but when combined with information on sustainability, the data produced can make a company leaner, more efficient and better positioned to meet the demands of today's new, highly sustainable world.
In other words, ERP can create synergy between a manufacturing companies business strategies.
ERP can manage everything from supply chain procurement and management, life-cycle assessment, business planning and product strategy.
These are things every manufacturing company should be measuring anyway, but when combined with information on sustainability, the data produced can make a company leaner, more efficient and better positioned to meet the demands of today's new, highly sustainable world.
In other words, ERP can create synergy between a manufacturing companies business strategies.
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