We are continuing our series of posts on sustainability and process mining. Today, let's talk about ESG - a set of criteria for managing sustainable development in a company. This approach aims to address environmental (E), social (S), and governance (G) issues.
▪️ E: Environmental issues are not only related to the company's activities but also to its rating. Process Mining allows you to analyze supply chains, emissions, the environmental friendliness, and sustainability of suppliers in real-time.
▪️ S: Here, we can analyze security systems, customer work quality, salary changes, and diversity within the company.
▪️ G: Process Mining enables the formation of development strategies based on real data on current processes and modern trends, as well as the search for processes to optimize and automate. With the help of Process Mining tools, it is possible to track indicators and assess the impact of one problem and its solutions on others.
For example, in a dessert manufacturing company, it was noticed that they had a high level of emissions in their logistics processes. Experts then started to investigate the problem using Process Mining:
▶️ It was discovered that the cause of the increased emissions was due to a large number of semi-empty truck shipments to stores: one truck was sent to each store, and then it returned to the production for a new order. Thus, there were three shipments per day for three stores.
▶️ Using root-cause analysis, it was identified that frequent shipping was necessary to deliver desserts on the day they were made because stores require fresh products.
▶️ Possible solutions to the problem were formulated: to send three trucks every three days or to send one truck every day to three stores, thereby optimizing the route.
▶️ Simulations were applied to compare the solution options, and it was realized that in the first case, desserts would not be fresh enough, and customers would not buy them, leading to additional costs and emissions from the disposal of the products. Therefore, we chose the option of sending one fully loaded truck to three stores at once along an optimized route.
✅ As a result, emissions during logistics processes were reduced through the optimization of truck loading and routing.
Stay tuned for new posts and case studies!