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Maximizing Sustainability: The Role Of ERP In Green Business Practices

Mar 19, 2025 - forbes.com
The article discusses how enterprise resource planning (ERP) systems contribute to green sustainability by enhancing operational efficiency and reducing waste. In manufacturing, ERP systems integrate smart business analytics and automation to optimize material requirements planning (MRP) and capacity requirements planning (CRP), leading to sustainable transportation and inventory management. Supply and demand planning within ERP systems helps maximize inventory and customer service levels, while green logistics practices minimize fuel consumption and emissions through route optimization and transportation management software.

Additionally, running ERP applications in the cloud reduces carbon footprints by sharing data center resources, and AI with embedded analytics improves forecasting and sustainability tracking. Warehouse management systems (WMS) enhance energy efficiency and reduce waste through automation and environmental detection systems. Overall, ERP software supports corporate sustainability by enabling energy-efficient production, improving logistics, reducing hardware needs, and optimizing resources, thus helping companies achieve environmental goals.

Key takeaways:

  • ERP systems enhance eco-friendly operations by cutting waste and improving efficiency across various business functions.
  • Manufacturing applications integrated with smart analytics and automation optimize inventory management and sustainable transportation.
  • Cloud-based ERP solutions reduce carbon footprints by utilizing shared infrastructure and sustainable power and cooling methods.
  • AI-driven analytics in ERP systems improve forecasting and help track sustainability objectives across organizations.
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