The Top Business Trend for 2020: Improve Manufacturing Sustainability
Sustainability is a hot button issue for many businesses today due to rising concerns about our impact on the environment and what we can do to improve it. In fact, a survey of more than 700 members of the United Nations Global Compact revealed that 96% of CEOs say sustainable business practices should be implemented in all areas of business strategy and operations. Of those same CEOs, 88% indicated that manufacturing sustainability (specifically within the supply chain) was of utmost importance; however, only 54% indicated they felt they had met that goal.
Environmental tragedies occurring all over the world are encouraging more and more businesses to take action and consider the footprint they’re leaving behind. Companies such as Walmart, McDonalds, Biogen, Adidas, and BMW are all advocating for more sustainable business practices. So, if you’re looking for the top business trend to focus on for 2020 and into the future, sustainability is it.Here we share with you the 3 key ways an ERP system can help you meet your manufacturing sustainability goals:
What is Sustainability and Why Does It Matter?
Sustainability in simple terms means meeting the needs of the present without inhibiting the ability of future generations to meet theirs. This generally covers three areas of focus: economic, environmental, and social.
In business, sustainable practices focus on achieving optimal performance using as little resources as possible without negatively impacting the business culture, the environment, or the adjacent society. Basically, sustainability is about doing more for less, cleanly.
This is important for many reasons. Mainly, sustainability supports the continued prospering and health of our current society and planet; but it also supports a healthy and enduring economy, society, and environment for our future. Because day-to-day business, production, and transportation of goods have a more significant impact on society, economy, and the environment, its important businesses are taking steps to create a safe and enduring present and future in these areas.
This is especially important for manufacturers, who should implement sustainable practices throughout the entire supply chain from the primary level all the way through to the retailers. Studies show the supply chain accounts for 50% to 70% of both total expenses and greenhouse gas emissions for most manufacturing companies. An effective sustainable strategy will lower costs, improve production time, and lower environmental impact. All wins for any business.
Not to mention, sustainable practices can provide a significant competitive edge for your company. A recent Corporate Sustainability Report from Nielsen Global showed 66% of respondents in 60 countries would pay more for products from a sustainable brand. A growth of 4% in sales of consumer goods from brands who committed to sustainability was also shown.
3 Ways an ERP System Improves Manufacturing Sustainability
An effective ERP system like NetSuite will cover the bases when it comes to back-office operations, can account for all the resources your business uses, and will integrate your business processes. For manufacturers, this includes managing work orders, assembly, BOM, and demand-based replenishment, creating a leaner manufacturing process overall.
Here’s how NetSuite ERP and their suite of systems technologies can play a major role in achieving your sustainability agenda:
Utilizing software like NetSuite will help you make significant strides in sustainability practices for your manufacturing business, as well as other industries. You’ll gain an all-in-one tool, robust monitoring and reporting capabilities, actionable insights, and more so you can rid of various and disparate systems, streamline processes, track resources, lower costs, and improve production.
To learn about NetSuite ERP and how it can benefit your manufacturing business, give us a call today at (855) 682-4324 or contact us here.
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