Principal Consultant, Pre-Sales head SAP EHS
The business case against workplace injuriesLast updated on May 4, 2021
The most precious asset for any organization is its people. Especially in accident or injury-prone industries such as manufacturing or chemicals, the health and safety of workers is a top strategic priority. EHS or Environmental Health & Safety (EHS) practitioners know the importance of worker productivity, business continuity and mitigating operational risks, so that the business can focus on what it does best.
Over time, technology has played a key role in enabling business leaders to not only quickly assess data on illness, track incidents, – essentially scale responses in a consistent way that prevents any future incidents proactively – rather than simply react to them. One such technology is SAP’s EHS platform that supports the planning and execution of incident response, supported by a data-driven auditable system of record. In this blog, we will view the realistic impact of such a solution through the lens of a case study.
A Fortune 500 medical device manufacturing company looks to minimize workplace incidents
The Bureau of Labour Statistics (BLS) recently revealed the national census of fatal occupational statistics from 2019, standing at 5,333, the highest since 2007. The annual cost to US business of workplace injuries in fact, is greater than the GDP of 91 countries, as per data from the World Monetary Fund, reaching a monumental $62 billion per year.
This is why it was not surprising that a Fortune 500 medical devices manufacturer was looking to standardize its EHS operations in 40+ business sites, for its 15,000+ people across 12+ countries, all with the aim of creating a safety culture, compliant with regulations. They needed to implement a comprehensive platform that would help track and gain keen insights into reportable incidents, lost time records, injury rate metrics, carbon emissions, energy consumption, waste generation and more. For this to be done efficiently, promptly and with confidence, the client also needed real-time visibility across their EHS functions, identify lagging indicators, and drive business outcomes with ease.
The need was for an all-encompassing environmental, health and safety software that would take the stress out of managing incidents, and create a safe, sustainable workplace.
Enter SAP EHSM
One huge advantage of SAP EHSM is that it makes operations safer by helping you act on hazards before they impact safety. This is done through thorough analyses of operational data and the provision of relevant information to the relevant people in real-time. Which is why the team of consultants from YASH recommended the implementation of SAP EHSM solution after having rigorous discussion/workshop sessions with business process owners. modules across Incident Management, Risk Assessment, Environmental Management, and Audit Management., the YASH solutions team finalized the SAP EHSM solution model integrated with third-party applications.
As part of phase 1, The Incident Management module helped with easy and quick incident reporting and processing of EHS processes. The Environment Management module ensured that all waste, water, fuel and energy consumption was tracked consistently with a standardized reporting template. In phase 2 of implementation, the Risk Assessment module ensured tracking of high and critical risks at the workplace, while the Audit Management module ensured clear visibility and tracking of compliance-related affairs – all in real-time.
As a result of these implementations, the client saw several strategic benefits including a 70% increase in observable reporting, and a proactive incident / safety culture. The client also witnessed a 15% reduction in OSHA recordable incidents, improved environmental score rating from C- (C minus) to B, as well as tailored gamification to ensure high engagement and scores in safety and sustainable across business units.
Fostering a safe workplace against all odds
Workplace accidents cannot be taken lightly as they not only impact the employee’s financial, physical and emotional well-being, they also impact the company’s future and fiscal health. Besides the direct costs as a result of accidents, workplace injuries also produce indirect costs for employers including lost productivity, talent, quality disruptions and reputation to a large extent. Having a data-driven framework of addressing all the existing and future gaps therefore, is becoming more crucial than ever before.
Want to learn more about YASH SAP EHS services? Or want to explore how our EHS advisory and center of excellence can help your organization cross the EHS & waste management road safely? Check out our offerings here.