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ENTERPRISE RESOURCE PLANNING
(46%) predominantly or completely cloud- based. Cloud ERP enables manufacturers to expand their capabilities with little disruption and lower on-site energy use, supporting environmentally friendly and efficient operations. It also supports hybrid working by allowing for remote monitoring of warehousing and manufacturing processes. Despite progress in AI and wireless connectivity accelerating decarbonisation,
SMART MANUFACTURING PRIORITISES SUSTAINABILITY
Andy Coussins, EVP & Head of International at Epicor Software, says cloud-based Enterprise Resource Planning (ERP) and Manufacturing Execution Systems (MES) will help manufacturers achieve sustainability and profitability goals
A
s consumer demand for ethically produced and eco-friendly products Increases, new climate change
legislation and growing stakeholder pressure make sustainability a priority for many organisations. At the same time, manufacturers face an unpredictable and competitive global marketplace with rapidly rising material and shipping costs, forcing them to adopt smart, flexible, and economical manufacturing methods.
Global collaboration
These challenges are prompting businesses to leverage digital tools that foster global collaboration. The advent of IoT-connected smart factories allows manufacturers to harness data insights from their shop floors and supply chains, enabling end-to-end visibility in sourcing, production, and distribution. This minimises waste and reduces carbon emissions, promoting more sustainable operations.
In contrast, legacy systems are
increasingly recognised as detrimental to the environment due to their inefficiency and high energy consumption. These outdated technologies often require substantial physical infrastructure, such as extensive on- site servers, which consume significant amounts of electricity and generate considerable heat, necessitating further energy expenditure for cooling.
38 JUNE 2024 | PROCESS & CONTROL
The inefficiencies inherent in legacy systems lead to higher carbon emissions and a larger environmental footprint. Transitioning to newer, more efficient technologies is essential for organisations aiming to minimise their environmental impact and promote sustainability.
As a result, manufacturers are increasingly adopting circular economy models, with 80% of CEOs ramping up digital technology investments to address economic challenges. In fact, 87% of business leaders have said they plan to boost sustainability investments over the next two years, presenting a significant opportunity for technology providers that can facilitate the transition to net zero.
With the UK government's commitment to achieving net zero carbon emissions by 2050, businesses are re-evaluating their extended supply chains to meet industry standards. This transition has a significant impact on manufacturers, who are adopting cloud- based Enterprise Resource Planning (ERP) solutions and Manufacturing Execution Systems (MES) to comply with net zero regulations while ensuring profitability. Many businesses are replacing legacy systems and opting for cloud-based solutions. According to the 2023 Epicor Industry Insights report, 96% of enterprises across a variety of industries employ some kind of cloud ERP solution, with almost half
effectively measuring and embedding sustainability through complex supply chain networks remains a challenge. Many businesses rely on integrated ERP systems to evaluate supply chain data and determine compliance costs. This allows immediate action on any disruptions in sourcing or distribution processes, ensuring products remain profitable and affordable. Manufacturers need accurate data on product quality, traceability, and repairability to maintain sustainable supply chains. Amid persistent stock shortages, logistics issues, and inflation, implementing robust digital solutions that transform real-time data into actionable insights is crucial for enhancing business agility and resilience.
Sustainable processes and materials To meet sustainability goals, manufacturers are integrating sustainable materials from the initial product design phase. The rise of digital tools that incorporate Computer- Aided Design (CAD) into ERP systems ensures sustainable processes and materials are used from the outset. Additionally, the adoption of low code/no code automation and analytics tools are increasing, helping to overcome challenges in resources, materials, production, and delivery.
In an era where sustainability is no longer optional but essential, manufacturers must collaborate closely with their wider ecosystem of partners, including both suppliers and customers, moving towards onshoring and circular economy practices. Digital solutions and collaborative approaches are key to thriving. Technology providers need to understand and address manufacturers’ unique challenges, tailoring industry-specific solutions that promote smart manufacturing for a more sustainable future.
Epicor
www.epicor.com/en-uk/
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