Green ERP?

With the drive to being more environmentally responsible, corporate management is (or will be) setting initiatives to reduce carbon emissions. While moving towards Green and reducing the carbon footprint, the question becomes, how do we manage this? Should ERP be modified to include the tracking of carbon emissions?

ERP systems are essentially large accounting systems that capture oodles of data and summarize it in a report to management. Traditionally, they are focused on financial, operational, human resources, and other resource data reporting. It would seem that the next logical step would be to begin tracking and reporting on carbon footprint data. It is surprising though that major ERP vendors have not yet announced this sort of system module or functionality.

[ReviewAZON asin=”0470393742″ display=”inlinepost”]With efforts in reducing the carbon footprint focused on the data center, such as reducing power consumption of the server farms, management may be missing the point. FedEx, for example, has reduced fuel bills by up to 30 per cent through better route planning for its trucks. That justifies a lot of server power.

Without the tracking of this sort of key data, management may be focused in the wrong direction. With proper information and analysis, companies can make better decisions and reduce emissions where it gives the most added value. It seems that an ERP system would be perfect in tracking, analyzing and notifying management on the results of their green strategic initiatives.

What do you think?

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