The urgency for manufacturers to meet net zero targets by 2050 is intensifying, driven by stricter regulations, rising consumer expectations, and the growing demand for sustainable practices across industries. Manufacturers are being tasked not only with reducing their carbon footprints but also with delivering transparent reporting on their sustainability efforts. In this context, enterprise resource planning (ERP) systems are emerging as essential tools that enable manufacturers to manage, measure, and report their carbon emissions with more precision.
Many manufacturers are realising that sustainable business practices can provide a competitive advantage by improving operational efficiency and meeting the expectations of environmentally conscious customers. However, implementing these practices at scale requires more than good intentions — it requires robust systems capable of collecting, analysing, and acting on vast amounts of data in real time. Here, ERP technology proves pivotal.
The role of ERP in sustainability
A standout example of ERP technology driving sustainability can be found at Optima Systems, a UK-based manufacturer that designs and produces architectural partitions and doors. By integrating an advanced ERP platform into its operations, Optima has achieved both environmental and financial gains. The system enables the company to track and analyse data across its entire production process, from material sourcing to final product delivery.
Real-time data provided by the ERP system empowers Optima to make informed decisions that reduce energy consumption, minimise waste, and optimise resource allocation. For instance, the company has enhanced its ability to repurpose materials such as aluminium partitions, significantly lowering the carbon footprint associated with its projects. By embedding sustainability into every stage of production, Optima has not only improved its operational efficiency but also strengthened its alignment with decarbonisation goals.
Optima has taken further steps by integrating user-defined fields within its ERP platform, assigning a carbon value to each job and product. This capability allows the company to monitor and report carbon emissions at a detailed level, meeting stringent carbon reporting regulations. Providing customers with comprehensive carbon data has become a significant market differentiator, especially as transparency regarding environmental impact becomes increasingly critical.
“Epicor is helping us advance our credibility by capturing evidence on exactly how we lower carbon emissions,” says Christian Mabey, Managing Director at Optima. “Being able to include carbon values on all orders and estimates has been a key differentiator for us. Any supplier who can prove they materially contribute to lowering the project’s carbon footprint will lead the way.” This commitment to transparency and sustainability positions Optima as a leader in eco-conscious manufacturing.
Enhancing efficiency on the shop floor
Beyond strategic decision-making, ERP systems are revolutionising daily operations on the factory floor. Integrating tools such as advanced manufacturing execution systems (MES) with ERP platforms allows manufacturers to monitor and analyse machine cycles, energy use, and other critical performance metrics in real time. This continuous oversight enables companies to optimise their machinery to reduce energy consumption and emissions without sacrificing productivity.
For instance, by attaching sensors to equipment, manufacturers can evaluate energy usage per machine cycle and identify ways to increase efficiency. These granular insights enable data-driven adjustments that contribute directly to emissions reduction. Integrating AI into ERP systems can amplify these benefits, allowing manufacturers to prioritise carbon-intensive activities and target areas where emission reductions will have the greatest impact.
AI-powered insights help companies apply the Pareto principle to their sustainability strategies, focusing on the 20% of activities that generate 80% of emissions. By continuously refining these strategies, manufacturers can make substantial and ongoing improvements in sustainability, transforming their operations into benchmarks of environmental efficiency.
Manufacturing the future, sustainably
As the pressure to decarbonise mounts, ERP systems are no longer optional. They are indispensable for businesses aiming to thrive in an environmentally conscious world. The ability to measure, report, and optimise carbon emissions is now vital for maintaining competitiveness and meeting regulatory obligations. Manufacturers that integrate ERP technology will be well-positioned to lead in a sustainable economy. These systems not only facilitate compliance with environmental regulations but also provide the operational insights needed to drive innovation and profitability.
ERP technology has evolved beyond its role as a back-office management system into a comprehensive platform that supports sustainable business practices. By helping manufacturers capture, analyse, and act on data related to energy use, resource consumption, and emissions, ERP systems enable businesses to meet decarbonisation targets while simultaneously improving operational performance. As global sustainability efforts intensify, manufacturers leveraging ERP technology will be at the forefront of the industry’s transformation.
For more articles like this, visit our Sustainability channel.
