As you implement initiatives that promote
sustainability, it makes sense for your business to find solutions and
initiatives to reduce waste, while gaining profit from reverse and forward
supply chains. Using a closed-loop production supply chain can be the solution
you need. This way, you can minimize waste and bring previously discarded goods
back into your value chain, particularly those that can be dismantled for
parts, repaired, or resold. Like most production processes, this model requires
careful production and demand planning, as well as business forecasting. SAP eCommerce may be able to help with
that.
Also known as up-cycling, closed-loop
production is a process that may help your business appeal to the new
generation of customers, particularly the Millennials and Gen Z. It shows that
you care about the environment, while providing transparency and visibility
into your production practices. Consumers are likely to choose you when they know
that your brand supports their causes and practices. The value of a closed-loop
production supply chain model extends beyond your bottom line as it can pave
way to global sustainability.
SAP eCommerce is a great tool that
can work with your closed-loop production supply chain model. With an
intelligent platform for supply chain and manufacturing planning, you can
reduce the number of defects, minimize obsolescence, and improve the whole
production process. It lets you coordinate manufacturing operations from
inventory to material requirements, while making sure that plans are up-to-date
based on real-time data from your plant floor, supplier network, and business.
With SAP eCommerce,
you can generate efficient plans for a complex assembly process, especially
where capacity planning, production, material requirements, machine models,
factory layout, material, and routing are concerned. It helps optimize material
flow and production too, so you can implement efficient and flexible
manufacturing processes with methods like just-in-time replenishment, lean
control and continuous improvement. SAP’s solution can also help the
closed-loop production supply chain model by boosting quality and lowering
costs, as it encourages collaboration between manufacturing and R&D teams.
