Business Soſtware
Simplifying sustainability S
Sustainability in electrical wholesale could be simplified using easy, existing technology, explains Andrew Davies, head of product engineering at OGL Soſtware.
ustainability has taken centre stage for consumers and small and medium- sized enterprises (SMEs) alike, prompting a growing awareness within electrical wholesale and distribution businesses of the significance and advantages of adopting environmentally responsible practices. This goes beyond enhancing their reputation and brand though, extending to cost efficiency in day- to-day operations.
Recent research underscores the increasing importance of sustainability, with 89% of small business leaders evaluating a company’s sustainability credentials before entering into collaborations. As such, sustainability needs to ascend higher on the priority lists of wholesalers and distributors across the electrical and other trade industries. But how can they effectively navigate the complex realm of sustainability? The answer lies in securing senior-level commitment supported by technology implementations that monitor, aggregate and provide data to identify areas where energy consumption and waste can be minimised. Cloud- based business software systems that seamlessly integrate critical components of wholesale operations, including stock management, accounting, customer relationship management (CRM), transport and warehousing, are essential for success. Fragmented systems that don’t communicate with each other result in manual record-keeping that falls short of offering the comprehensive overview needed.
Key drivers of sustainability
Businesses adopt sustainable practices for various reasons, with customer demand being a primary motivator. Improved brand reputation and meeting customer expectations are leading factors driving sustainability initiatives. As customers become increasingly loyal to environmentally conscious brands, businesses can significantly enhance their standing.
Another major driver is the opportunity for brand differentiation. While sustainability has been on the radar of many customers, it is now emerging as a distinguishing factor in the market. Establishing a green image can set a business apart from its competitors.
The demand for sustainable products has surged so wholesalers are becoming more
20 | electrical wholesaler December 2023
conscious of stocking sustainable products and favouring reputable brands to maximise sales. Sustainability offers more than just environmental responsibility; it can help businesses save money by reducing waste, energy consumption and operating costs. Compliance with stringent environmental regulations is not only a legal obligation but also a pivotal aspect of sustainability to avoid fines.
The role of technology in sustainability Business software systems, especially Enterprise Resource Planning (ERP) systems, play a central role in simplifying a company’s green initiatives. These systems offer visibility, data sharing, process simplification, increased productivity, reduced manual tasks, and decreased reliance on unsustainable products and services. ERP systems automate and streamline various business processes, facilitating time, cost and resource savings. They provide visibility into the entire supply chain, enabling informed decision- making regarding sustainable product sourcing
The demand for sustainable products has surged so wholesalers are becoming more conscious of stocking sustainable products and favouring reputable brands to maximise sales.
and efficient facility operations.
This visibility also enables better stock control, allowing electrical wholesalers and distributors to manage stock efficiently, minimize deliveries and optimise routes, leading to improved delivery services. ERP systems, like Profit4, can make businesses more agile and efficient, from inventory planning to automating sales processes. ERP systems offer numerous integrations, such as digital signature capture, route planning optimisation and e-commerce solutions, further reducing environmental impact and operational costs, while sustainability dashboards, powered by data from multiple sources, help manage supply chains. In making all internal processes more efficient, ERP streamlines operations to reduce waste and carbon footprint. They also provide tools for measuring sustainability metrics.
Conclusion
Implementing ESG practices will undoubtedly bring an influx of data to electrical wholesalers and distributors. Technology solutions like ERP, which integrate data into one easily accessible dashboard, will be crucial in managing this data effectively.
Real-time monitoring and transition reports will become standard as businesses seek to proactively address ESG risk management and avoid accusations of greenwashing. In summary, with a sustainability strategy in place, technology can empower all wholesalers and distributors to make data-backed claims, drive efficiency and contribute to a more sustainable world. Even small changes, like consolidating orders and modernising transportation, can have a substantial green impact with the support of business software. Just as GDPR prompted transparency and compliance, a similar demand for transparent and proven Environmental, Social and Governance (ESG) practices could lead to the introduction of mandatory sustainability compliance ratings. Failing to adopt sustainable practices may result in fines or severe consequences for businesses.
ewnews.co.uk
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