HomeArticlesThe ERP revolution: how sustainable practices are reshaping business

The ERP revolution: how sustainable practices are reshaping business

Sustainability is no longer just a trend and has become an essential commitment for companies. With more conscious consumers, stricter environmental regulations and investors attentive to ESG practices, businesses from all sectors need to balance economic growth and socio-environmental responsibility.In this scenario, ERP (Enterprise Resource Planning) systems have played a key role, helping companies to optimize resources, reduce waste and ensure greater transparency in their operations.

Efficient management and transparency in the circular chain

Efficient resource management is one of the pillars of sustainability, and ERPs offer a detailed view of the consumption of inputs such as energy, water and raw materials. With real-time monitoring, it is possible to identify waste and implement measures for a more rational use, reducing costs and environmental impacts. Integration with technologies such as IoT also allows automatic adjustments, such as shutting down equipment outside the hours of use or reprogramming production processes to minimize losses.

In the supply chain, transparency has become a decisive factor for companies seeking a sustainable business model. ERPs enable strict control over suppliers, allowing companies to track the origin of raw materials, evaluate environmental practices and ensure that business partners follow ethical criteria, according to MIT Sloan Management Review this modern traceability reduces by up to 40% the risks related to environmental compliance. This not only reduces risks and improves the reputation of the company, but also facilitates adaptation to market and regulatory requirements.

Another crucial advantage of ERPs is the reduction of waste and the encouragement of circular economy. By integrating production, inventory and logistics data, these systems help to predict waste generation and find ways to reuse or responsible disposal. With a more accurate management of demand and inventory, companies also avoid excesses, reducing waste and optimizing the use of materials. A study by Gartner (2022) shows that companies using ERP for waste management have achieved a reduction of 25% in the volume of waste generated, contributing to a more sustainable production cycle.

ESG as a tool in environmental management

In addition to operational efficiency, compliance with environmental regulations is a growing need for companies operating in increasingly demanding markets. With specific modules for environmental compliance, an ERP allows you to monitor sustainability indicators, automate reporting and ensure that the company complies with environmental standards and certifications, avoiding fines and strengthening its image in the market. According to a report by the European Environment Agency, companies that use ERP for environmental compliance have a success rate of 90% in meeting regulatory requirements.

Demand for more transparency has also driven the adoption of detailed ESG reports, and ERPs have become essential allies in this process.By consolidating data from different areas of the business, they facilitate the creation of reports on environmental impact, governance and social responsibility, meeting the demands of investors, customers and regulatory bodies.

The integration between ERP and sustainability represents a strategic opportunity for companies seeking to combine innovation and socio-environmental responsibility. By combining sustainable practices with ERP technology, companies not only guarantee a positive impact on the environment, but also build a more resilient and prepared model for the future. The adoption of ERP as a sustainable management tool not only contributes to the conservation of the environment, but also strengthens the competitiveness and image of companies in the global market.

Roberto Abreu's
Roberto Abreu's
Roberto Abreu is director of solutions at BlendIT.
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