Implementing extended producer responsibility into the ERP model

Abstract

Advancement in technology has affected every domain including communication, transportation and even fashion. Products are becoming obsolete at faster rates which account for increasing waste generation posing a major environmental concern due to the hazardous nature of the materials. It needs proper treatment prior to being disposed. According to the regulations by Ministry of Environment and Forests (MOEF), the producer, distributor and consumer have their respective roles in the proper disposal and recycling process. The available practices consist of either formal or informal methods. The former being the Extended Producer Responsibility (EPR) strategy, using financial incentives to encourage manufacturers to design environmentally friendly products by holding producers responsible for the costs of managing their products at end of life. EPR takes the form of a reuse, buy-back, or recycling program. The producer may also choose to delegate this responsibility to a third party, a so-called Producer Responsibility Organization (PRO), which is paid by the producer for used-product management. 81% of organizations are either in the process of implementing Enterprise Resource Planning (ERP) software or have completed implementation. ERP systems track business resources and commitments using a database as an information repository. This paper incorporates the EPR strategy in the ERP system for convenience in recycling of products. This policy entails the producer responsible from the manufacturing, maintaining a database of products, collection of expired products, providing incentives and recycling.