The importance of environmental, social and governance (ESG) criteria has increased significantly in recent years, particularly in the manufacturing industry. Companies today are under increasing pressure to improve their environmental and social performance while ensuring ethical business practices. ESG criteria provide the framework to assess a company's sustainability and social responsibility, which is increasingly influencing market positioning and investment decisions.
Manufacturing Execution Systems (MES) play a crucial role in modern production as they monitor and optimize processes in real time. These systems help companies to increase efficiency, improve quality and reduce costs by providing comprehensive insights into the production process. With the ongoing digitalization of industry, MES is becoming an indispensable tool for manufacturing companies and their products.
In this context, cloud-native MES systems are becoming increasingly important compared to conventional on-premises solutions. Cloud-native systems not only offer technical advantages such as flexibility and scalability, but also help companies to achieve their ESG goals more effectively. This article explains the reasons why manufacturing companies should rely on cloud-native MES and why a switch and investment can make sense.
A cloud-native MES is a modern manufacturing execution system that has been specially developed for operation in the cloud. In contrast, an on-premises MES is operated locally on the company's servers. While on-premises systems have traditionally been used in many industries, cloud-native MES solutions offer a number of advantages that make them the preferred choice for forward-thinking companies.
Although on-premises MES systems offer a high level of control over data and infrastructure, they are associated with considerable costs for hardware, maintenance and regular updates. They are also less flexible and more difficult to scale. Cloud-native MES systems, on the other hand, do not require large investments in hardware and allow for easy scaling as needed. They offer continuous updates and improvements that are implemented automatically, which significantly reduces operating costs. This turns out to be one of the biggest ROIs of implementing cloud-native systems.
The superiority of cloud-native MES lies in their ability to adapt quickly to changing business requirements. They offer greater flexibility as they are accessible from any location with internet access and facilitate global deployment. Cloud-native systems are also generally more secure as they are managed by specialist providers who have the latest security protocols in place.
In the environmental area, ESG criteria aim to minimize the ecological impact of a company. This includes measures to reduce the carbon footprint, use resources sustainably and minimize waste. For the manufacturing industry, this means that production processes must be designed in such a way that they are as environmentally friendly as possible without compromising manufacturing productivity. Sustainability rating agencies assess companies in terms of their environmental, social and governance performance. These ratings are crucial for investors who want to invest their capital responsibly. By integrating cloud-native MES, companies can ensure that their production processes and business practices are transparent and aligned with the highest ESG standards, which in turn can lead to better ratings from sustainability rating agencies.
Corporate Social Responsibility (CSR) refers to the responsibility of companies for their impact on society. The main focus here is on the proactive promotion of the common good and environmental protection, far beyond what is required by law. A cloud-native MES can have a particularly supportive effect here by enabling sustainability goals to be integrated into core business strategies. It offers tools for improving occupational safety, promoting diversity and monitoring compliance with social standards.
Corporate governance refers to the way in which a company is managed and controlled. This concept is central to meeting ESG criteria, as it ensures that companies not only operate in an economically efficient manner, but also act ethically and responsibly. Strong corporate governance promotes compliance with laws and internal policies, protects the interests of stakeholders and contributes to the overall sustainability of the company. Implementing a cloud-native MES supports these efforts by providing transparent and traceable data that forms a basis for responsible decision-making.
Cloud-native MES systems make a significant contribution to reducing energy consumption as they are operated in state-of-the-art data centers that are optimized for energy efficiency. By continuously monitoring and analyzing production data, inefficient processes can be identified and improved, leading to a significant reduction in energy consumption. Cloud-native systems also make it easier to optimize the use of resources by providing accurate data on material usage and minimizing waste.
A cloud-native MES can improve social compliance by providing comprehensive monitoring programs and analytics solutions that increase workplace safety. Real-time monitoring allows potential hazards to be identified and avoided at an early stage. In addition, a cloud-native MES supports the promotion of diversity and inclusion by facilitating compliance with company policies in this area.
Cloud-native MES systems offer greater transparency and data integrity, which is essential for compliance with governance standards. All relevant data is stored centrally and can be retrieved at any time if required. This facilitates compliance with legal requirements and improves risk management, as potential problems can be identified and addressed at an early stage.
Companies can save considerable costs by switching to a cloud-native MES. The need for expensive hardware investments is eliminated and ongoing IT costs are significantly reduced by using cloud services. In addition, the scalability of a cloud-native MES enables resources to be used in line with demand, which not only reduces costs but also optimizes resource consumption.
A cloud-native MES offers the flexibility to implement new functions and technologies quickly without the need for extensive changes to the existing infrastructure. This is particularly important at a time when digitalization is advancing rapidly and companies must constantly take advantage of new opportunities to optimize processes and increase efficiency. The ability to respond quickly to change is a key competitive advantage.
Switching to a cloud-native manufacturing execution system can help companies achieve their ESG goals faster and more efficiently. With better data analysis capabilities, increased transparency and continuous updates, companies can ensure they are always operating in line with the latest sustainability and governance standards. This not only strengthens the ESG balance sheet, but also the trust and security of investors and customers.
In practice, many companies have already benefited from integrating cloud-native MES into their ESG strategies. One example is a leading automotive manufacturer that was able to reduce its energy consumption by 15 % by using a cloud-native MES, while at the same time improving workplace safety. These and similar success stories show how effective the combination of cloud-native MES and ESG can be.
However, implementing a cloud-native MES to support ESG criteria is not without its challenges. It requires careful planning, selection of the right provider and extensive employee training. However, companies that overcome these challenges can realize significant benefits and achieve their ESG goals efficiently.
Cloud-native MES systems offer numerous advantages over on-premises solutions, particularly with regard to meeting ESG criteria. They help to optimize energy consumption, increase resource efficiency, improve workplace safety and comply with governance standards. For manufacturing companies that want to secure their long-term competitiveness while at the same time fulfilling their responsibility towards the environment and society and making their investments with a positive ROI, switching to a cloud-native MES is a sensible and forward-looking decision.
With the increasing importance of ESG criteria in manufacturing and advancing digitalization, the role of cloud-native MES in the manufacturing industry will continue to grow. Companies that adopt this technology at an early stage can secure a decisive competitive advantage and achieve their ESG goals more efficiently at the same time.
SYMESTIC allows you to get started immediately with a cloud-native manufacturing execution system and offers you the opportunity to try out the product quickly and easily. Contact us today to find out more about how we can help you implement your production ESG strategy.
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In addition, the topics of lean production, continuous improvement, Kaizen, Six Sigma and shopfloor management play an important role for ESG and MES in identifying the potential for improvement in production. MES products enable efficient communication and coordination directly at the production level (operational excellence), which is essential for the identification and optimization of ESG.
SYMESTIC is one of the world's leading providers of cloud-native MES systems. Book a 4-week evaluation without obligation and see for yourself how quickly, easily and cost-effectively data can be collected automatically using modern SaaS tools. Have key figures continuously calculated and analyzed. Use objective, trustworthy key figures, dashboards, reports and notifications in all production-related departments for ESG score improvements in your company!
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