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Intelligent Business Software as the Key to Greater Sustainability in Supply Chain Management
Jun 13, 2024 // Nils Clemens
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In an era in which sustainability is no longer an optional extra, but increasingly a business-critical necessity, companies are faced with the challenge of combining environmental responsibility with economic efficiency. Issues such as climate change, waste and human rights as well as an increasing number of legal requirements such as the EU's CSRD guidelines (Corporate Sustainability Reporting Directive) are increasing the pressure on companies to act proactively. Supply chain management in particular has enormous potential to protect the environment and improve working conditions through optimized processes. However, with ever new regulations, such as the Supply Chain Act, and increasingly complex structures, many companies now feel overwhelmed.
A holistic solution through AI-supported optimization software
This is where intelligent business software comes into play. It can provide companies with market-oriented support in successfully mastering these challenges in value creation. It not only provides its users with a clear overview of the complex structures of supply chains, but also makes sustainability potential transparent and helps to optimize processes in a targeted manner. In addition, it can usually be easily integrated into almost any existing IT landscape as an add-on solution. State-of-the-art mathematical algorithms and their precise forecasts are also increasingly making intelligent business software an indispensable tool for future-oriented companies.
The advantages of intelligent optimization software at a glance
More transparency, less waste:
The software provides companies with transparency across their entire supply chain and enables them to plan their processes with greater foresight. As a result, companies can optimize their safety stocks and reduce excess stock and waste more easily.
Increased efficiency and CO2 reduction:
Improved planning also reduces the need for transportation, which can significantly reduce companies' CO2 emissions. For example, the transparency gained and the networking of different company locations makes it easier to procure raw materials within the group of companies so that goods have to be relocated less frequently. The improved planning achieved through the use of intelligent software also means that stockouts and ad hoc deliveries can be reduced and orders can be consolidated more easily.
More sustainable use of raw materials:
In the area of production, intelligent business software also helps to use resources more efficiently through more precise planning and the improved exchange of information. This helps to reduce the consumption of raw materials, energy and water.
Strengthening the supply chain and social responsibility:
Furthermore, the software not only improves internal company processes, but also collaboration with suppliers. For example, generated order proposals can be shared with business partners at an early stage, which in turn increases planning reliability on both sides and strengthens the resilience of the entire supply chain.
Relief and health promotion in everyday working life:
Another significant advantage of intelligent business software is that it reduces the workload on employees. Automating routine tasks, such as maintaining master data, frees up valuable time that employees can use for more demanding, fulfilling activities. This not only promotes a healthier working environment, but also increases overall employee satisfaction.
Conclusion: A step towards the future
The use of intelligent business software can help to overcome the complex challenges of the modern business world more easily and promote sustainability in supply chain management.
Companies that exploit the potential of optimization software not only improve their environmental footprint, but also strengthen their market position and fulfill their social responsibility more easily.
What measures are you taking to make your supply chain more sustainable?
Further information on our understanding and ambitions with regard to sustainability, as well as our sustainability report, can be found here.
About our Expert
Nils Clemens
Project Manager | Inventory & Supply Chain
Nils Clemens has been working as a Project Manager in the Inventory & Supply Chain department at INFORM since 2021 and deals with topics related to the optimization and sustainability of supply chain processes.
