Can an ERP system help reduce your company's global footprint? That's the question in Circular Economy Week. The answer is: yes! In this blog, we explain how.

In recent years, it has become more apparent than ever that the current, linear economy is not sustainable. Our current economic processes roughly follow the path: make, use and discard. The circular economy is the alternative to this.

In the circular economy, we focus on reusing and recycling resources and assets, making parts, whole products, equipment and infrastructure last much longer. Forced or not, many companies are moving to greener alternatives of existing business processes during this time. Your ERP system can make a positive contribution to this!

How automation helps

Digitizing existing business processes does not necessarily yield environmental gains. Sure: it saves paper statements, paper invoices and paper work orders, but its environmental impact is small.

However: making business processes more efficient is indeed a major factor of influence when talking about the circular economy.

More efficient production, more efficient planning and more efficient use of source materials not only greatly reduces waste, but also reduces logistics movements and depletes natural resources.

Let's go through these points one by one.

1. Produce more efficiently
   Producers who switch to SAP Business One or another ERP system will be able to produce in less time, with less material and possibly with fewer people. Machines can run more efficiently, using less energy.Moreover, in some cases, literally less production space is needed and the life cycle of the equipment you use also improves.
2. More efficient planning
   More efficient planning has a huge impact on wholesalers and manufacturers working with warehouses and (own) logistics. Many logistical movements can be limited by a smarter pick list or a more logical route. This saves fuel and the use and of vehicles, making them less likely to need replacement.
3. Using people more efficiently
   Not only factories or vehicles, but also people themselves obviously have a big impact on the environment and the circular economy.The more we have to move around, the worse it actually is. And: the more people a business process requires, the harder it is for a company to reduce its carbon footprint.
4. More efficient purchasing
   Companies using the WMS modules of SAP Business One and Wholesale can schedule their purchasing more efficiently. As a result, the inventories they have to handle can be limited, which saves a lot of space. Storage of materials not only costs a lot of money, often there are adverse environmental effects in the form of cooling (air conditioning), lighting or heating.Purchasing more efficiently sometimes also means buying in bulk. This may seem to contradict the previous paragraph, but bulk purchasing is also, in a sense, environmentally beneficial. After all: do you run a truck for three pallets or for 20?
5. Less waste
   In recent years, manufacturers have been under increasing pressure to keep waste to a minimum. And rightly so! Good ERP software allows you to use source materials as efficiently as possible and even reuse residual waste within your own manufacturing facility in the production process.

Consulting on circular business processes

Do you want to take a green step with your business? Then you need an ERP package that will help you take this step.

At Logres, we are happy to advise you on the possibilities. We now have a lot of experience with companies that want to save and make sustainable use of their materials. So our consultants bring with them best-practices from other clients. Ask us for advice! We will be happy to help you.