Going Green with ERP

8/25/2010 at 10:00 am by The Sage ERP Team

In a slow economy, business owners are looking for any way to cut costs. For some, investing in an ERP system can be an excellent way to squeeze a little more out of every dollar. By trimming the proverbial fat surrounding many business processes, companies can do a lot to improve their bottom lines. But another supply chain and procurement trend is also emerging amongst multi-national corporations looking to save some money in a tough economy – going green.

One year after Wal-Mart announced its intention to help its suppliers track and manage their carbon emissions, energy use and efficiency, many other major corporations are following suit. Businesses are investing in energy-efficient appliances, low-impact materials and renewable resources. Wal-Mart, for example, asked its suppliers to reduce the size and weight of their packaging materials. By doing so, trucks were able to carry more items per trip, reducing gasoline consumption.

Of course, it would be erroneous to assume that businesses are going green purely for the environmental benefits. While philanthropic interests indeed play a role, going green can mean a lot more green for your business. The savings from energy-efficient lights, appliances and processes can add up to enormous sums over the years.

One additional way that businesses can help the environment, in addition to all the recyclable materials and keeping the thermostat at a reasonable temperature, is through ERP software.

While some ERP vendors provide ERP systems specifically designed to help businesses monitor their energy use, even general ERP solutions are bound to result in increased efficiency and decreased carbon emissions. Using ERP to manage supply chains and procurement is a great way to keep track of these things. And using ERP to make your business more efficient will have a ripple effect throughout the rest of your processes, resulting in a better-run business that will be able to turn off all those energy-sucking computer screens earlier than its non-ERP counterparts.

ERP systems can also be customized to keep track of all the data that business processes can accrue, such as energy use and gas emissions. Emissions reporting is now required of businesses that exceed certain thresholds established by the National Greenhouse and Energy Reporting Act. Handling this data manually can be costly and time consuming, but ERP systems can not only keep track of it, they can also help you establish where you can cut back on emissions.

What would motivate your business to go green? How do you think ERP can help you get there? Share in the comments.