In today’s competitive market, many businesses are moving to a more environmentally sustainable way to conduct and operate their business. Moving to an eco-friendly business model can help your business retain environmentally aware customers, and save your company money.
You might be wondering, how can moving to a cloud ERP reduce a business’s carbon footprint? There are three main ways a cloud ERP can help a company become more environmentally friendly – reducing electricity consumption, improving the supply chain and moving towards a paperless business model.
Lower your electricity consumption
On-site ERPs take a big toll on your company’s bottom line and the environment. An on-site system may require new servers, which in turn can create more waste, as you consider how to dispose of your old servers. Once your on-site ERP is installed, the power required to keep the server running can cause a blowout on your future electricity bills.
Cloud ERPs do not require a physical on-site server, making the cloud the most cost-effective and environmentally friendly option for your business. And if you’re concerned you’re handing the carbon emission problem over to the cloud vendor data centre, this is not the case. Many cloud providers understand the impact technology can have on the environment and promote environmental sustainability. Several data centres, such as Microsoft have long been 100% carbon neutral, with plans to be carbon negative by 2030.
Improving supply chain processes
The supply chain is usually an area in manufacturing or distribution businesses where improvements can be made, especially where sustainability is concerned. Manufacturing, packaging, storage, and distribution all have an impact on emissions. Using a cloud ERP will help you determine which areas need improving and where waste is occurring.
Most businesses find the main areas which cause waste are over-production or over-purchasing of stock. By moving to a cloud ERP, your business will be able to monitor inventory management and minimise waste.
Following on, a cloud ERP can help improve delivery schedules, reducing fuel consumption for your transport fleet. The shorter the distance a product travels, the better it is for your company.
Moving towards a paperless enterprise
In any business, going paperless is not something that will happen overnight. It requires planning and cooperation across all departments. Some areas where a cloud ERP can create improvements is by reducing paper consumption, including printing, file management costs and access.
Using a cloud ERP can reduce printing, paper and mailing costs and reduce costs when it comes to file management, storage, and disposal. Who wants to waste time searching through filing cabinets to find a customer file? A cloud ERP increases accessibility and provides real-time visibility, giving your staff the information they need anytime and anywhere to make quick decisions.
When you move to a cloud-based ERP, your business is taking a step closer to becoming a greener enterprise. There are many other reasons to make the move to the cloud. If you are interested in talking through the advantages of moving to a cloud-based financial management system, contact us to find out more.
