University of Twente Student Theses
Revolutionizing Automotive Sustainability : Implementing ERP for CO2 Emission Reduction
Yozdemir, Erkan (2024) Revolutionizing Automotive Sustainability : Implementing ERP for CO2 Emission Reduction.
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| Abstract: | The automotive industry is a significant contributor to global carbon emissions, necessitating innovative solutions to enhance sustainability [38], [44]. As regulatory pressures and societal demands for environmental responsibility increase, the need for effective strategies to reduce emissions has never been more critical [14], [23]. This study investigates the potential of Enterprise Resource Planning (ERP) systems in mitigating CO2 emissions within the European Union's (EU) automotive sector, a key player in the region's economy and environmental strategy [20], [45]. The EU automotive industry, contributing approximately 7% to the EU's Gross Domestic Product (GDP) and employing over 14 million people, faces stringent environmental regulations aimed at achieving climate neutrality by 2050 as part of the European Green Deal [12], [13]. These regulations position the automotive sector at the forefront of the EU's sustainability transition [8], [15]. This research adopts a systematic literature review methodology, complemented by the PRISMA (Preferred Reporting Items for Systematic Reviews and Meta-Analyses) approach [51]. The study scrutinizes both theoretical frameworks and practical applications, drawing from 74 articles that meet the specified criteria [48]. ERP systems have evolved from inventory control and production planning tools to comprehensive platforms integrating various business functions [69], [70]. In the automotive sector, ERP systems can optimize resource utilization, streamline operations, and reduce waste, thus significantly contributing to sustainability goals [23], [28]. ERP implementations can reduce emissions by up to 20% by minimizing energy consumption and unnecessary production processes [20], [24]. ERP systems enhance environmental performance by enabling better monitoring and management of environmental impacts [8], [16]. The study highlights the strategic importance of ERP in supporting decision-making processes that align with sustainability goals, such as the selection of eco-friendly materials and the implementation of circular economy principles [44], [23]. ERP solutions provide holistic visibility and regulatory compliance mechanisms pertaining to environmental impact, thereby serving as an indispensable instrument for the European automotive sector to realize its sustainability imperatives and attenuate its carbon emissions [38], [45]. Despite these benefits, the adoption of ERP systems faces challenges, including high implementation costs and resistance to change [42], [43]. Overcoming these challenges requires strategic planning, stakeholder engagement, and a commitment to change management [8], [14]. Collaboration among stakeholders—suppliers, manufacturers, and logistics providers—is essential for maximizing the potential of ERP systems in reducing emissions and promoting sustainability [38], [39]. The research concludes that ERP systems are critical in reducing the carbon footprint of the automotive industry [24], [26]. By optimizing supply chain operations, improving resource efficiency, facilitating compliance with EU environmental regulations, and enabling the integration of sustainable practices across business processes, ERP solutions can help the automotive industry meet its ambitious sustainability goals [20], [22]. Future research should explore the integration of ERP with emerging technologies like AI and IoT, examine the long-term impacts of ERP systems on sustainability outcomes, and investigate the human and organizational factors influencing the success of ERP implementations [24], [30]. This executive summary encapsulates the main points of the study, highlighting the transformative potential of ERP systems in fostering sustainability within the EU automotive industry. |
| Item Type: | Essay (Master) |
| Faculty: | EEMCS: Electrical Engineering, Mathematics and Computer Science |
| Subject: | 01 general works |
| Programme: | Business Information Technology MSc (60025) |
| Link to this item: | https://purl.utwente.nl/essays/103647 |
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