Sustainability boosts profitability for Swedish manufacturers
New research from European software provider Forterro has revealed that 72% of Swedish midmarket manufacturers have reported increased profitability because of operating more sustainably. The study also shows the extent to which Swedish manufacturers are now focusing on sustainability, with 76% of respondents saying it is a priority. 78% said their organisation has a dedicated resource to address sustainability, while 69% said their organisation has a Net Zero plan.
“Every manufacturer in Sweden is aware of the challenges that come with operating more sustainably, in terms of doing the right thing for the planet but also maintaining market share and keeping a control on costs,” said Mikael Brodin, Director, Product Management, Forterro. “It’s clear that Swedish companies are taking this much more seriously now they can see it also drives financial success and manufacturers all over the country are taking purposeful, accountable steps to be sustainable.”
Supply chains are one of the main areas where Swedish manufacturers are focusing their sustainability efforts, with 80% of respondents digitalising supply chain and logistics operations to improve transport efficiency.
When it came to localising supply chains, one-third of manufacturers said that supplier cost reduction and a desire for more control over operations were a key motivation. Customer demand also plays a role, reflecting shifting market expectations and the need for Swedish manufacturers to adapt to meet those changing requirements.
Technology can be used to great effect when it comes to sustainable operations. ERP can help midmarket manufacturers enhance their sustainability efforts, making it easier for them to manage resources efficiently, reduce waste, manage inventory and achieve and maintain compliance with environmental regulations. 81% of the research respondents said that ERP helps their organisation operate more sustainably.
“For Swedish midmarket manufacturers, an ERP system is a highly effective way to manage resources more responsibly and take meaningful steps towards Net Zero,” continued Brodin. “It’s a proactive measure that can both reduce costs and help companies meet increasing demand for environmentally friendly products and operational practices.”
The findings come from a Forterro report - Swedish Midmarket Manufacturing: Key Tech Trends, Best Practice and Future-Proofing.