The COP26 climate summit in 2021 was an important event for climate protection - not only for states and governments, but also for trade and industry. From a manufacturer's perspective, sustainability is also increasingly linked to profitability: Investors are increasingly focusing on companies with the greenest possible credentials. All manufacturers are aware of the need for sustainable practices and their urgency is now omnipresent.

Many producers are putting their methods to the test and working on new strategies for product development and manufacturing that use resources as efficiently as possible. The transition from a linear to a circular economy plays a key role in this. The focus is primarily on more sustainable buildings, more sustainable products and recyclable raw materials. Although the manufacturing industry is making considerable progress, it must continue to adapt in order to remain compliant and competitive. The goal is clear: conserve resources, minimize waste and reduce emissions.

Business models based on the circular economy are increasing the pressure on manufacturing companies to also rethink their business processes - particularly with regard to the energy and resource requirements of supply chains and the volume of residual materials. A look at the software and the technical approach are also essential for sustainable processes and workflows.

Technology providers have the task of providing appropriate software solutions. For example, digital solutions support leaner manufacturing processes that are more environmentally efficient and generate less waste. They also allow a better insight into a company's operational processes. Machine maintenance intervals can be scheduled and replacement and consumable materials can be provided before bottlenecks or breakdowns occur. Software also provides a better overview of resource usage: Excessive water or material consumption can be identified and avoided, carbon emissions are reduced and the production process is therefore optimized.

Commitment to sustainability is crucial

To achieve tangible effects, companies must select suitable technology providers and partners. When selecting such providers or reviewing existing partners, the first step should be to ensure that they actually have and live a green mindset. It is absolutely essential that manufacturers and technology providers work closely together from the outset so that the desired 'sustainability value' can be reliably determined and quantified.

The manufacturer's initial contribution is to develop a strategy and formulate goals. Only then can a partnership-based dialog be established to determine the existing potential so that these goals can also be achieved.
For their part, the technology providers should also be aware of the urgency of a more sustainable operation of the company and its specific value. If there is clarity and consensus, the next step should be to demonstrate the potential benefits of technology solutions and how they can support the manufacturer's sustainability goals. It often makes sense to start with a clearly defined goal on a 'small scale' and gradually and consistently expand it over time. The decisive factor is to set out together and to master the defined route together.

There are already numerous examples of how technology solutions from providers can lead to convincing results. One example is the implementation of Rolls-Royce's 'Intelligent Engine' vision: the Blue Data Thread, made possible by the partnership between Rolls-Royce and IFS, establishes data connectivity between the airline and Rolls-Royce. It allows the company to significantly extend the intervals between engine overhauls and thus reduce emissions.

Seeking dialog, forging partnerships

The author: Michael Ouissi is Chief Customer Officer at IFS.

© IFS

Technology providers and manufacturers should recognize that the time is ripe for sustainability measures - and producers as well as the software industry can simply achieve their sustainability goals faster together. In addition to the positive effect of increased environmental protection, this will also bring them concrete business benefits: greater efficiency, an improved corporate reputation, greater attractiveness for investors, stronger employee loyalty and greater resilience to new, agile challengers in the market. Companies that are already taking a positive approach to sustainability by finding the right technology partner and forming a proactive, future-oriented team will secure their future viability.