Sustainability & clean ingredients in cosmetics: how ERP systems help

Sustainability and transparency are core values for today’s consumers. Companies in the cosmetics industry must meet strict requirements to earn and maintain customer trust. A modern ERP system helps make supply chains transparent, achieve sustainability objectives, and document certifications seamlessly. We’ll show you how it works.

The term green compliance refers to adherence to environmental laws, regulations, and standards. For companies in the cosmetics industry, it goes far beyond meeting legal minimum requirements – it’s about taking active responsibility for the environmental and social impact of their operations.

In practice, green compliance covers several key areas:

• Resource conservation: reducing the consumption of water, energy, and raw materials
• Waste management: minimizing waste and promoting recycling
• Pollution control: avoiding or reducing emissions and environmentally harmful substances
• Sustainable sourcing: choosing suppliers who also meet ecological and social standards

The challenge lies not only in implementing these requirements but also in documenting them transparently. This is precisely where the strength of a modern ERP system comes into play.

A sustainable supply chain begins with choosing the right partners. Cosmetics manufacturers must ensure that their raw materials come from sources that meet ethical and environmental standards. An ERP system supports this process by centralizing and making all relevant information easily accessible.

Supplier evaluation and certification

With integrated supplier relationship management, sustainability criteria can be seamlessly embedded into the evaluation process. Certificates and evidence can be stored to ensure that approved partners deliver raw materials of consistently high quality.

Traceability of raw materials

An ERP system enables complete lot tracking. Every lot is recorded from warehouse receiving to the finished product, allowing the origin of ingredients to be verified at any time.

Reducing waste and overproduction

Through precise demand planning, an ERP system helps optimize production. Raw materials are used efficiently, overproduction is avoided, waste is reduced, and costs are lowered.

Monitoring and reporting

ERP systems provide tools for analyzing sustainability performance. Automated reports create transparency and document progress.

Creating transparency through accurate data

Consumers want to know exactly what goes into their cosmetics. This demand for clean ingredients goes far beyond a simple list of contents. People expect information about sourcing, processing, and the social conditions of production.

Formula management and allergen labeling

An ERP system with industry-specific functionality for cosmetics enables precise formula management. It manages not only exact quantities but also all relevant properties of ingredients. Nutritional values, allergens, and potentially critical substances are recorded centrally. When a formula changes, the system automatically recalculates the nutritional information and updates the labeling for the packaging – minimizing errors and ensuring full compliance with legal labeling requirements.

Documentation for certifications

Whether organic, vegan, or halal – many products today carry labels that confirm specific quality or production standards. The auditing process for such certifications is often complex, requiring detailed documentation of the entire production process. An ERP system significantly simplifies this task. Since all relevant data – from sourcing and formulation to delivery – is captured digitally, the required reports and documentation can be generated at the click of a button. This not only saves time but also increases reliability during quality audits.

Sustainability and transparency are not just challenges – they are real opportunities for companies in the food and chemical industries. With Yaveon 365 as your industry-specific ERP solution, you create the foundation to achieve sustainability goals effectively and secure a lasting competitive edge.

Yaveon 365 connects all key business areas, increases process transparency, and enables data-driven management of your sustainability strategy. Shape your future successfully – and responsibly.