Who doesn’t like Green??

By S.Suren

Many of you have probably heard the Green term. First Green Planet, Green Energy, then came Green House Manufacturing and now, Green ERP??!! First question in everyone’s mind would be how can we expect an ERP System to be green and contribute to our planet’s green environment?

I did some research on this matter and this is what I have come to unearth (green talk). I am sure you have all at some point of time seen those IBM Ads that talk about providing a green system and help the environment; well this was my starting point.

Though people term it as Green ERP what it really means is how the ERP provides different industry specific solution that provides the information necessary for the management to help with their strategic green initiatives. Some of the best industry solutions that the ERP Vendors would need to look at to be able to term their ERP as Greener than others, would be industries associated with transportation and manufacturing.

Simply put, the better functionalities available in the system to be able to track and monitor the logistical operation with a financial view point, will help identify those processes that are not value adding and at the same time have a high consumption of non-renewable resources, and by identifying and eliminating these will help towards the achievement of being a more green company.

Some examples (without going into too many details):

1. Take for instance a manufacturing company that often only ships goods, however if their production takes more time than anticipated, they would have to airfreight them adding to more fuel consumption per unit of the good transported as opposed to sea freight, so there you go with an ERP they could plan better and meet their deadlines and in turn contribute to the environment, evidence of Green ERP!!

2. By using an ERP systems functionality to select the best routes possible for a transportation company, will help reduce their fuel consumption, this was actually practiced by a well known company that helped it reduce their fuel bills by upto 30% and thereby contribute to their global green strategy.

3. In the service sector perhaps by identifying the resource requirements of personals involved will help to better plan their time, so if its identified that the service personal has no need to travel anywhere for a particular day, maybe the management could ask him to work from home, this would save on his/her travelling time and thereby help reduce whatever little fuel he/she might use in getting to work. After all, the energy saved at work by that person working from home is also likely to contribute to a green initiative, and did you know, studies show that employees working from home put it more productive hours than they would at office.

4. With the new software solution model architectures such as “SaaS”, means that hosted solution by the ERP Vendor will help the client’s costs in terms of energy and related costs associated with having to maintain their own server rooms, infrastructure etc. When looking at these implications at a larger scale it does seem to point out that there is a green impact that software model architectures like these have.

5. Not to forget the paperless office that an ERP System can bring to an organization. Less paper means more trees saved which in turn helps in lowering temperatures, filtering dust, and absorbing ozone, nitrogen oxides, carbon monoxide and heavy metals, and by of course releasing oxygen, and there we go a direct connection on how an ERP can be Green!!

The above list is not exhaustive; there are many more examples that can be given, but for now this is it, perhaps in the future I shall posts more!!

Have a nice day!!

Your comments, suggestions and questions are welcomed at: ssurenlk@msn.com