ERP, SCM and CRM Role in Greening The Enterprise.
Abstract
Green Enterprise Resource Planning (ERP) is one of the method which is made to improve organizations or companies in exploiting resources to work on productions. The goals of this green ERP are to maintain environmental stability, to avoid harmful green house effect caused by carbon footprints. With the concern of every environmentalist and forceful government regulation, every company, especially manufacturing will have to specify the way of their consumption of resources and management of waste to make them aligned. Several other modules are also adjusted to this green ERP system such as Customer Relationship Management in case of greening management customer satisfactory and Supply Chain Management as the procurement and greening distribution system.
Keyword: Green ERP, Avoid Harmful Green House Effect
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Abstraksi
Green Enterprise Resource Planning (ERP) adalah salah satu metode yang mana dibuat untuk meningkatkan suatu perusahaan dalam memanfaatkan suatu sumber daya untuk menghasilkan suatu produk. Tujuan dari green ERP adalah untuk mempertahankan kestabilan alam, untuk menghindari efek rumah kaca yang sangat membahayakan yang disebabkan oleh gas carbon dioksida. Dengan dorongan para ahli lingkungan dan hokum pemerintah yang mengikat, setiap perusahaan, pada khususnya pabrik diharuskan memperhatikan konsumsi sumber daya dan menyesuaikan manajemen limbah. Beberapa modul green ERP lainnya seperti Customer Relationship Management yang menangani kepuasan konsumen dengan konsep green dan Supply Chain Management yang mengatur pengadaan barang dan distribusi turut disesuaikan terhadap konsep green.
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Table of Content
LEMBAR PENGESAHAN TUGAS AKHIR ... 1
LEMBAR PERNYATAAN PERSETUJUAN PUBLIKASI LAPORAN TUGAS AKHIR UNTUK KEPERLUAN AKADEMIS ... 2
SURAT PERNYATAAN ORISINALITAS KARYA ... 3
Preface ... 4
Abstract ... 6
Abstraksi ... 7
Table of Picture ... 9
Chapter I: Introduction ... 10
I. 1. Problems Occurred ... 11
I. 2. Goals ... 12
I. 3. Report Boundaries ... 13
Chapter II: Green Background ... 14
II.1. Enterprise Resource Planning (ERP) ... 15
II. 2. Supply Chain Management (SCM) ... 16
II. 3. Customer Relationship Management (CRM) ... 18
Chapter III: Implementation ... 21
III. 1. Green Business ... 22
III. 2. Energy Conservation ... 22
III. 3. Green IT ... 23
III. 4. Waste Reduction ... 24
III. 5. Green ERP ... 25
III. 6. Green ERP Vendor ... 26
III. 7. Green SCM ... 27
III. 8. Green CRM ... 29
Chapter IV: Conclusion ... 33
References ... 35
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Table of Picture
Picture 1. Supply Chain Management Scheme………...…...14 Picture 2. Customer Relationship Management………...……..…16
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Chapter I: Introduction
Global warming, nowadays this term keeps being mentioned everywhere to make people realize and think about the consequence of its existence on earth. People keep on living with using all the resources that earth has provided for daily needs such as food, shelter, transportation, and entertainment. The never ending life cycle of living beings on earth makes people keep taking advantage and using resources of the earth, combustible substance, chemical elements, crops, and many other things.
With the touch of technology, people process raw materials into something useful for daily needs called products. However to create one type of products it is necessary to process the raw materials. Many things are required just to process one raw material into finished products, burned with fire using fuel, froze using nitrogen, temper, blend, arrange using machines that needs electricity, and lots of other processing methods to create products. Manufacturing purpose is to create more value in each of the item so people can use it for greater purposes. The goals of the production is basically to supply demand and gain profits, nothing does really matter as long as one organization or company gains profits from what it produces and sells. There are 2 types of basic product that enterprises offer to sell, concrete products, and service products. Resources are necessary no matter what the product type is. However just because one company gets good profits usually they are satisfied with their current process without knowing that there is something more important than just gaining profits, it is the environment.
ERP as the one major involvement in a business nowadays, provides companies and organizations with the integration of departments, in result
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decreasing costs and increase profits. However, in the first impression of ERP technology, nothing is shown that this kind of technology is actually caring about environment directly; this report will show how is this system contributes to nature and society by greening the enterprise.
I. 1. Problems Occurred
Global warming as the current issue nowadays involves all living being, especially humans as the main entity who always needs environment for supporting life. Poisonous chemical substances are thrown out to the air, land and water from daily activity destroying nature’s life itself. Carbon footprint is the most obvious cause for increasing temperature of the earth. Industries, organizations, and companies are some of the largest impact on producing this harmful gas. Even all their objectives are to satisfy the customers and gain profits; it was included in the output that everything should go into process and the result is products and waste.
Environmental scientist has made this matter clear that carbon footprint and the release of dangerous chemical substances need to be pushed down every year to come; otherwise deadly consequences are waiting for every living thing on earth. Government, environmental scientist and large number of people insist that people need to start act green, means conserve every resources. Industries were also included in this program without doubt. Main concern that needs to be taken care is waste management.
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I. 2. Goals
Brand new work process, system integration, and efficiency are initial improvement that ERP will show in obvious way. With the help from ERP system, companies will get sorted activities which are useful and eliminate work that might be unrelated to the company’s successfulness. Given that, with the help of ERP, company could start managing their consumption to minimize pollution output and manage it into more environmental friendly.
Green Customer Relationship Management (GCRM) will help customer to get information as much as they want about the products, not to mention GCRM will act greener because less paper usage, but also customer satisfaction will increase gradually because of the fast response from the company.
Green Supply Chain Management (GSCM) will be more adjusted mainly on the distribution and packaging, because from that point, GSCM will be able to track the carbon footprint output and more efficient on using the resource for the packaging itself. Given that GSCM will surely able to decrease emission since there will be less error happen on every order and delivery.
The expected goals from this report and implementation of the systems:
• Efficiency in handling the resources,
• Better work process,
• Integrated system,
• Waste management,
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I. 3. Report Boundaries
This report was made for academic purpose of fulfilling the task that given to the author as a student at Bond University. Author did not actually experience using of the ERP software, nor do actual work and survey relating to green activity results. This report is considered as research paper which made by doing a research for information mainly through internet and websites as references, and author’s knowledge.
Although this report was made, there are still some boundaries available to the fact which the author explained:
- This report explains and describes how ERP, SCM, and CRM contribute in helping people to reduce the carbon footprint.
- Although ERP, SCM, and CRM were implemented in a company, it is not guaranteed one company will act greener than it used to be.
- Green ERP will not solve the problem green house effect entirely which is caused by carbon footprint, its all depends on the people. - Not every company who wants to be green has to implement ERP
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Chapter IV: Conclusion
Nowadays business is not just thinking about getting profits anymore, society, government, and environment are asking for process that is ‘eco-friendly’. Global warming is the main concern about this matter because too much CO2 emission in the air that resulting green house affect which is very harmful to all living being. With the drive to being more environmentally responsible, corporate management is setting initiatives to reduce carbon emissions.
Greening enterprise is one of the many great ways to improve the value of work such as:
• Paperless
• Less electrical usage
• Less toxic substance
• Recycle
• Most important thing is efficient
By being green, companies are conserve energy usage and saving the environment by using nature’s product efficiently. ERP, SCM, and CRM are the major part in almost all business also contributes methods that are green. Green ERP helps companies to know exactly what to do to reduce the carbon footprint which is inefficient workload on shipping department. Green SCM emphasize all efficiency on supply and distribution of the products to the customer such as less packaging, correct amount of products which is need to be delivered. Green CRM is how the company please the customer directly with eco-friendly way such as Virtual Contact Centre and E-billing.
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With better performance of the ERP, SCM, and CRM in the companies, it is expected that the future of the environment is getting better with less carbon footprint.
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References
1. TMCnet Special Guest Orcun Tezel, Technical Director, 3Com September 05, 2008
http://green.tmcnet.com/topics/green/articles/38964-greening-enterprise.htm, retrieved 2008-11-15
2. Oracle website http://www.oracle.com/green/index.html, retrieved 2008-11-16
3. Integrated Decision Systems Consultancy Pte. Ltd
http://www.idsc.com.sg/services_logistics.htm, retrieved 2008-11-17
4. Cirko-Mes http://www.cirko-mes.com/Scm.html, retrieved 2008-11-18
5. Shigeki Umeda, Albert Jones, National Institute of Standards and Technology http://www.mel.nist.gov/msidlibrary/doc/caracas.html retrieved 2008-11-18
6. http://searchcrm.techtarget.com/sDefinition/0,,sid11_gci213567,00.htm l, retrieved 2008-11-19
7. Thomas Wailgum
http://www.cio.com/article/40295/Customer_Relationship_Managemen t, retrieved 2008-11-19
8. Melinda Nykamp, Nykamp Consulting Group
http://www.ecustomerserviceworld.com/earticlesstore_articles.asp?typ e=article&id=961 retreived 2008-11-20
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9. Thomas Wailgum
http://www.cio.com/article/40323/ERP_definition_and_solutions, retrieved 2008-11-17
10. Tech-FAQ http://www.tech-faq.com/erp.shtml, retrieved 2008-11-20
11. Hitachi Data System, November 2007
http://www.hds.com/assets/pdf/eco-friendly-data-center.pdf, retrieved 2008-11-16
12. TMCnet Special Guest Orcun Tezel, Technical Director, 3Com September 05, 2008
http://green.tmcnet.com/topics/green/articles/38964-greening-enterprise.htm, retrieved 2008-11-16
13. Administrator, October 11 2008
http://www.erpandmore.com/2008/10/11/green-erp, retrieved 2008-11-20
14. Oracle website
http://www.oracle.com/corporate/community/environment/index.html, retrieved 2008-11-17
15. Oracle website http://www.oracle.com/openworld/2008/green-program.html, retrieved 2008-11-17
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17. Oracle website http://www.oracle.com/applications/green/supply-chain.html, retrieved 2008-11-18
18. Oracle website http://www.oracle.com/applications/supply-chain-management.html retrieved 2008-11-18
19. Oracle website http://www.oracle.com/applications/green/green-customer-relationship-management.html retrieved 2008-11-20
20. Oracle website http://www.oracle.com/applications/crm/siebel/self-service-ebilling/whats-new-in-e-billing-6.0.html
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I. 3. Report Boundaries
This report was made for academic purpose of fulfilling the task that given to the author as a student at Bond University. Author did not actually experience using of the ERP software, nor do actual work and survey relating to green activity results. This report is considered as research paper which made by doing a research for information mainly through internet and websites as references, and author’s knowledge.
Although this report was made, there are still some boundaries available to the fact which the author explained:
- This report explains and describes how ERP, SCM, and CRM contribute in helping people to reduce the carbon footprint.
- Although ERP, SCM, and CRM were implemented in a company, it is not guaranteed one company will act greener than it used to be.
- Green ERP will not solve the problem green house effect entirely which is caused by carbon footprint, its all depends on the people. - Not every company who wants to be green has to implement ERP
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Chapter IV: Conclusion
Nowadays business is not just thinking about getting profits anymore, society, government, and environment are asking for process that is ‘eco-friendly’. Global warming is the main concern about this matter because too much CO2 emission in the air that resulting green house affect which is very harmful to all living being. With the drive to being more environmentally responsible, corporate management is setting initiatives to reduce carbon emissions.
Greening enterprise is one of the many great ways to improve the value of work such as:
• Paperless
• Less electrical usage
• Less toxic substance
• Recycle
• Most important thing is efficient
By being green, companies are conserve energy usage and saving the environment by using nature’s product efficiently. ERP, SCM, and CRM are the major part in almost all business also contributes methods that are green. Green ERP helps companies to know exactly what to do to reduce the carbon footprint which is inefficient workload on shipping department. Green SCM emphasize all efficiency on supply and distribution of the products to the customer such as less packaging, correct amount of products which is need to be delivered. Green CRM is how the company please the customer directly with eco-friendly way such as Virtual Contact Centre and E-billing.
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With better performance of the ERP, SCM, and CRM in the companies, it is expected that the future of the environment is getting better with less carbon footprint.
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35
References
1. TMCnet Special Guest Orcun Tezel, Technical Director, 3Com September 05, 2008
http://green.tmcnet.com/topics/green/articles/38964-greening-enterprise.htm, retrieved 2008-11-15
2. Oracle website http://www.oracle.com/green/index.html, retrieved 2008-11-16
3. Integrated Decision Systems Consultancy Pte. Ltd
http://www.idsc.com.sg/services_logistics.htm, retrieved 2008-11-17
4. Cirko-Mes http://www.cirko-mes.com/Scm.html, retrieved 2008-11-18
5. Shigeki Umeda, Albert Jones, National Institute of Standards and Technology http://www.mel.nist.gov/msidlibrary/doc/caracas.html retrieved 2008-11-18
6. http://searchcrm.techtarget.com/sDefinition/0,,sid11_gci213567,00.htm l, retrieved 2008-11-19
7. Thomas Wailgum
http://www.cio.com/article/40295/Customer_Relationship_Managemen t, retrieved 2008-11-19
8. Melinda Nykamp, Nykamp Consulting Group
http://www.ecustomerserviceworld.com/earticlesstore_articles.asp?typ e=article&id=961 retreived 2008-11-20
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9. Thomas Wailgum
http://www.cio.com/article/40323/ERP_definition_and_solutions, retrieved 2008-11-17
10. Tech-FAQ http://www.tech-faq.com/erp.shtml, retrieved 2008-11-20
11. Hitachi Data System, November 2007
http://www.hds.com/assets/pdf/eco-friendly-data-center.pdf, retrieved 2008-11-16
12. TMCnet Special Guest Orcun Tezel, Technical Director, 3Com September 05, 2008
http://green.tmcnet.com/topics/green/articles/38964-greening-enterprise.htm, retrieved 2008-11-16
13. Administrator, October 11 2008
http://www.erpandmore.com/2008/10/11/green-erp, retrieved 2008-11-20
14. Oracle website
http://www.oracle.com/corporate/community/environment/index.html, retrieved 2008-11-17
15. Oracle website http://www.oracle.com/openworld/2008/green-program.html, retrieved 2008-11-17
16. Green Power to The Supply Chain, S. Khiewnavawongsa, Purdue University, E. K. Schmidt, Purdue University
http://www.tech.purdue.edu/it/GreenSupplyChainManagement.cfm, retrieved 2008-11-18
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17. Oracle website http://www.oracle.com/applications/green/supply-chain.html, retrieved 2008-11-18
18. Oracle website http://www.oracle.com/applications/supply-chain-management.html retrieved 2008-11-18
19. Oracle website http://www.oracle.com/applications/green/green-customer-relationship-management.html retrieved 2008-11-20
20. Oracle website http://www.oracle.com/applications/crm/siebel/self-service-ebilling/whats-new-in-e-billing-6.0.html