What is sustainable manufacturing and the benefits?

Posted by Tiffany Leung on 19 Dec

erp-software

Sustainable manufacturing is the creation of manufactured products using economically sound processes while staying environmentally and socially responsible. It also involves manufacturing processes that conserve natural resources and energy to enhance the safety of your product, employees and the community at large.

Benefits of introducing a sustainable production process to the business 

Reduction in manufacturing resources and costs

Lower production costs and maximise profit margins will be ideal for most businesses. With a sustainable production process, equipment and methods that promote efficient utilisation of resources are incorporated into the manufacturing process - this will help improve efficiency and promotes the rational use of resources especially those that are non-renewable. Moving to become sustainable is good for the environment and beneficial for the business.

Encouraging innovation 

To have more efficient equipment and production processes, you may need to replace the systems that you use. This will seem expensive at first, but the long-term gains are appreciable. Being sustainable can be part of the innovation process. It could improve processes, save on operational costs and help the planet at the same time.

Improved sales 

The number of people who are moving to sustainable products continues to increase steadily. More and more people wish to reduce their negative impact on the environment, while others feel that sustainable products are safer for use.

Having a Corporate Social Responsibility charter with a sustainability element can have a positive impact on the company's reputation. It establishes your brand identity and sets you apart from competitors, building competitive advantage as well as a business that gives back to the environment and is conscious of the community’s values.

Add effective marketing strategy, concentrate on providing good customer experience, customers are more likely to return. Happy customers will not hesitate to return, give you good feedback and even refer you to other people.

Higher rates of hiring and retention

A huge aspect of today's environmentally-conscious population is the people you employ. Enticing them with your business' sustainability is a sure way to attract and retain good employees.

Less regulatory compliance costs

Long gone are the days when businesses were allowed to operate without environmental certifications. New laws are frequently drafted to make sure every business establishment has eco-friendly manufacturing processes and products. Keeping your business on toes with environmental legislation will save you compliance costs and eventual shutdown.

Sustainable manufacturing also reduces any waste generated during production, thereby reducing the business’s environmental responsibility. This, in turn, lowers external costs that the business has to cover for negatively impacting the environment and the cost of waste removal.

Sustainable manufacturing made easier

It can take a while for a company to be carbon neutral, but, small changes can make a big difference. Introducing systems such as ERP, to monitor manufacturing processes in real-time and remove the need for paper. It can also utilise and manage available resources, manage quality and maximise efficiency. The system enables you to make quick alterations to maximise efficiency with the least amount of resources.

Taking on an ERP system may seem quite a challenge at first, but with a little change in mindset you get to see that you can achieve two vital goals: profitability and being eco-friendly.

>> See WinMan's ERP software functions here

Topics: ERP Software, Business Management Software, Production Management, Business Efficiency, Productivity, Management

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