The process industry is intensively engaged with the topic of sustainability by discussing it, analyzing potential, and setting itself goals. However, the real challenge lies in putting these goals into practice.
ERP systems are essential for this: they function not only as tools but as catalysts. By efficiently processing and making large amounts of data usable, they enable companies in the chemical, pharmaceutical, cosmetics, and food industries to make the leap from theory to practice.
According to a recent SAP study, there are two types of companies when it comes to sustainability: reactive and resolute.
While some do what investors, customers, and laws dictate, resolute companies act in a more purposeful way by implementing more sustainability measures than all others. And their investments in sustainability pay off more quickly from a financial perspective.
How do you become a company that not only plans sustainable practices, but also acts decisively – and therefore reaps the benefits? That's what we’ll explore in this blog post.
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Hurdles on the Road to Sustainability: Why the Process Industry is Struggling to Take Action
Companies in the process industry are not hesitant to take sustainable action because they are fundamentally weak in leadership and sluggish. Rather, it is often structural and systemic barriers that prevent rapid and effective change. Companies face complex challenges such as high costs for sustainable technologies, strict regulatory requirements, and the need to radically rethink existing processes. These factors require careful planning and often long-term strategic adjustments.
The complexity of processes
The process industry often has very complex processes that consume a lot of energy and resources. This complexity often means that companies don't know where to start when optimizing their processes for sustainability. A deep understanding of the technical details and accurate data collection are vital to realize effective improvements.
Regulatory requirements
Environmental regulations are becoming ever stricter, placing high demands on the process industry. It’s no easy task to adapt to the required changes in a flexible manner and then finance them. The temptation is great to focus on the legal requirements and adopt a defensive stance.
Economic considerations
The cost of sustainable technologies can be prohibitive. In an environment where financial pressure is high, companies tend to prioritize short-term financial goals over long-term sustainability targets. This often delays the adoption of environmentally friendly technologies or practices.
ERP System: The Technological Lever for Sustainability in the Process Industry
So, how can companies in the process industry overcome these difficulties? A large part of the solution lies in a modern ERP system. Not only does it create comprehensive data integration and increased transparency; it also optimizes processes and ensures compliance with legal requirements.
By centrally collecting and evaluating data from various areas of the company, it makes it easier to pinpoint inefficiencies and plan targeted improvements. At the same time, the system automates processes so that resources can be used more efficiently, thereby reducing waste and energy consumption.
For example, the system can automatically reduce the energy supply when machines are not in operation. This way, it helps companies to operate more sustainably and effortlessly meet regulatory requirements.
Sustainability is the key to greater success. And technology is THE key to sustainability. Find out why in the free guide for the process industry. Click here to download.
Sustainably efficient – how an ERP system accelerates your sustainability strategy
An ERP system specializes in managing data, providing you with concrete and comprehensive insights into what is happening in your company and supply chain. Several steps are required to go from generating this data to taking concrete action:
- Data collection: ERP systems continuously collect and consolidate data from various sources within a company, e.g. production data, energy consumption, waste management, and logistics.
- Data analysis and interpretation: The first challenge is to analyze and understand this data to identify trends, patterns, and inefficiencies. For example, ERP systems can identify areas where energy is wasted or where resources are overused. Integrated tools such as carbon footprint calculators can help with this.
- Decision-making: You can make informed decisions based on the knowledge gained. For example, you may decide to change processes, reallocate resources, or invest in energy-efficient technologies.
- Planning and implementation: After the decision-making process comes the strategic planning and implementation of the necessary changes. You might adjust your production lines or refine your procurement strategy to save resources.
- Monitoring and feedback: With your ERP system, you can now track exactly how your measures are performing. You are no longer left in the dark, but can make small tweaks until the result is just right.
The cycle of data collection, analysis, decision-making, and implementation helps to initiate data-driven measures to improve sustainability.
ERP? From SAP, Of Course!
ERP systems are not only there to transform operational data into strategic actions; they are also crucial for sustainable operations management in the process industry. That's why it's vital for forward-thinking companies to integrate technology such as ERP systems into their sustainability efforts.
ERP solutions from SAP are powerful tools for corporate management that also use the SAP Sustainability Footprint Management cloud application. This is software that enables companies to actively shape and minimize their carbon footprint.
With this solution, companies can collect and analyze environmental data along their entire value chain to get a better overview of their environmental impact. In other words, it not only helps to comply with environmental regulations; it also supports the effective implementation and communication of sustainability strategies, which in turn facilitates more sustainable business management.
Let us advise you – we look forward to hearing from you!
