| Manufacturers and distributors in all industries and | | | | enterprise and establish “one version of the |
| regions of the world are reevaluating how their | | | | truth.” For instance, the ERP system can show |
| businesses impact the environment in which they | | | | that a supplier is on the company’s preferred |
| operate, including their partners, customers and | | | | supplier list, which may mean the supplier meets |
| communities. From design and sourcing to production | | | | company standards related to child labor or organic |
| and distribution, manufacturers and distributors are | | | | sourcing. Often, these metrics correspond to specific |
| rapidly establishing sustainability or “green” | | | | measurement metrics within the Global Reporting |
| programs across their supply chain because they | | | | Initiative Sustainability Reporting Guidelines. |
| increasingly make real business sense. With Lawson | | | | Governance, Risk Management and Compliance |
| business ERP software, companies can manage their | | | | Almost all sustainability programs contain elements of |
| environmental programs efficiently and achieve the | | | | governance, risk management, and compliance. At |
| green targets that many companies are now obliged | | | | this level, an internal control system allows companies |
| to attain. | | | | to more effectively and efficiently manage these |
| Most of these initiatives are at early stages, as | | | | requirements ? whether government mandated or |
| companies evaluate how sustainability can become a | | | | established by the company ? by providing an |
| more integral part of their business strategy, | | | | automated solution to manage control activities. |
| reputation and brand. Companies are focusing on their | | | | An internal control system can centralize the |
| biggest cost areas and on areas that have the most | | | | information manufacturers and distributors need to |
| significant impact on the environment. Sustainability | | | | manage sustainability activities within any functional |
| programs leading the way for manufacturers and | | | | area (e.g., supply chain management) and across the |
| distributors include facility energy reduction, facility | | | | enterprise. The approach focuses on four areas: |
| emissions reduction, and reduction of fuel | | | | 1.Documentation. Provide a central repository for all |
| consumption and emissions from their fleet and | | | | governance, risk management, and compliance-related |
| related product logistics. | | | | documents that is accessible to auditors and |
| Companies have also begun information technology | | | | managers, and where documents are updated as |
| (IT) initiatives to support their sustainability programs. | | | | close to real time as possible. |
| However, these initiatives are far from mature. In | | | | 2.Testing. Track testing activities, including what was |
| most instances, sustainability is evolving largely as a | | | | tested, when, by whom, results, and remedial actions |
| disconnected set of activities, where individuals or | | | | when testing failed. |
| departments use spreadsheets or home-grown | | | | 3.User interface. Communicate all key information to |
| software applications to track their efforts and | | | | the appropriate audiences through an intuitive, secure, |
| report results. There is a definite need for integration | | | | role-based, user-defined portal. |
| and automation. | | | | 4.Monitoring. Enable companies to manage key events |
| Business ERP software promises to be an important | | | | and transactions within their ERP and other business |
| tool for companies to better manage sustainability | | | | applications to easily present any significant or |
| programs across their supply chain. By using business | | | | material events to the appropriate audience. |
| software, companies can easily manage the | | | | As a result, the reporting layer can include the |
| sustainability programs across their entire organization | | | | documentation or history of on-site audits of |
| in one place, gain greater visibility into their existing | | | | business practices for all the preferred suppliers listed |
| sustainability programs, and produce better results. | | | | in the ERP system. |
| The Strategic Role of Business ERP Software in the | | | | Enterprise Performance Management |
| Sustainable Supply Chain | | | | Enterprise performance management systems deliver |
| We can break down business software’s role in | | | | business intelligence via dashboards, scorecards, |
| sustainability programs into three elements: enterprise | | | | reports and alerts that allow knowledge workers to |
| resource planning (ERP) software as the foundation; | | | | thoroughly analyze complex problems and then take |
| internal controls for governance, risk management | | | | action. They are what let us know that sustainability |
| and compliance; and enterprise performance | | | | objectives are being met or whether action needs to |
| management. Each of these levels is important to the | | | | be taken to get the effort back on track. Role-based |
| effective execution, management and measurement | | | | dashboards work as the heart of the solution and act |
| of a manufacturer or distributor’s sustainability | | | | as a gateway for sustainability activity management. |
| program. | | | | Workers can quickly navigate from alerts to detailed |
| The Foundation: ERP | | | | reports to the actual transactional data. |
| Because ERP systems are often integrated and | | | | Enterprise performance management also includes a |
| enterprise-wide, they can sensibly form the | | | | workflow layer. The workflow layer is mandatory for |
| foundation for managing sustainability programs. One | | | | managing the complex interactions of individuals |
| approach to the problem is to align ERP applications | | | | engaged in sustainability activities, such as monitoring |
| with the sustainability programs a company is | | | | carbon dioxide emissions or energy usage. |
| implementing, and then incorporate internal control | | | | System-based controls, paperless activities, and |
| and enterprise performance management solutions to | | | | electronic approvals promote repeatable and |
| create a complete solution. | | | | sustainable actions and allow manufacturers and |
| The reason why ERP systems can work so well as a | | | | distributors to easily monitor key events, while |
| foundation for sustainability program is that they help | | | | enabling simpler audit trails and reducing risk. |
| manage the transactions that flow through the | | | | |