Digital Transformation Improves Environmental Balance

The sustainability of products has become a buying reason – What companies should do…

When it comes to purchasing decisions price and quality increasingly share the podium with the sustainability of products. The effort for environmental protection within the value-added chain of products is becoming more or less a selling argument. But, what are the causes of this development? Consumers are attaching more and more importance to environmental protection. A recent study by Nielsen showed that around 81 percent of respondents worldwide expect companies to demonstrate greater commitment to sustainability.

Not only chemical companies face the challenge of being prepared for this development. The steel industry, for instance, is also affected. Companies are struggling with rising carbon prices and are faced with the challenge of reducing their CO2 emissions by 50 percent. But: Chemical companies, which work with hazardous substances, are being watched. The reason: Many depend on fossil materials, which are often used as energy sources or raw materials. In order to free the companies from this dependency, emission-free energy sources must be made available.

But what can companies regardless of the resources available do to improve their environmental performance?

Of course, it is unavoidable to move forward with new raw materials and the search for environmentally friendly energy sources. However, these are by no means solutions that can be implemented quickly. It is much more obvious to rethink the processes within the company first. For example, automation and end-to-end transparency of all work steps already make a significant contribution to improvement, as they reduce paperwork and product recalls, which in turn cause more CO2 emissions, as further transport costs are incurred and the defective products have to be recycled.

Automated processes protect the environment

Solutions like the Elemica network help customers improve and achieve their measurable sustainability goals through the automation of processes. Manual approaches are cost-intensive, time-consuming and have a high failure potential. Automating business processes for sourcing, procurement, order management, inventory as well as logistics streamlines operations and boosts efficiencies. Electronic purchasing and sourcing, transportation optimization and shipment visibility are some of the green solutions provided by Elemica help customers to lower their costs while driving sustainability.

Optimizing transport and logistic processes

Companies are also able to lower their carbon footprint and energy usage through their transportation & logistics departments by optimizing shipments and loads through Elemica’s Logistics and Sourcing solutions. Ensuring that orders are correct, shipped on time and shipped to the right location in the right quantities, produces successful first-time deliveries that lower costs and energy consumption. With Elemica MOVE, companies can book slots/appointments for arrivals or departures, ensuring the right team & equipment are at the dock to facilitate loading and unloading. This also eliminates wasteful idling of trucks while waiting to be filled or unloaded, thus lowering energy usage and carbon emissions.

Transparent quality managament saves resources

IT solutions for quality management such as Elemica Quality offer broad optimization potential. Instead of using a detailed internal quality management system based on Lean and Total Quality Management (TQM) processes within manufacturing, Elemica Quality extends the solution to customers and logistics service providers into an entire supply chain quality solution. By providing automated quality proofs during the inbound, production and delivery cycle, companies can ensure compliance, minimize material waste and effectively save time and money on quality measures.

Conclusion

After all, the significance of sustainability in the product life cycle is the sole decision of the specific company. However, the fact that end consumers are attaching more and more importance to the environmental balance of products cannot be dismissed either. Getting started with digital processes can not only reduce costs, but also actively save resources – and thus significantly improve the environmental balance from product development until delivery.