Client Overview
Sunrise Multi Tech Fasteners (Sunrise) is a leading manufacturer of industrial fasteners, known for its innovation, quality, and commitment to sustainability. Established over three decades ago, the company has built a strong reputation in the global market, serving industries ranging from automotive to aerospace. As environmental regulations tighten worldwide, particularly concerning carbon emissions, Sunrise recognized the urgent need to align its operations with international standards such as the Carbon Border Adjustment Mechanism (CBAM).
Challenge
In recent years, the European Union’s (EU) CBAM has become a pivotal regulation affecting global trade. Designed to prevent carbon leakage and encourage clean industrial practices, CBAM imposes a levy on imports based on their carbon content. For Sunrise, this presented a significant challenge. The company’s extensive supply chain and global distribution network meant that compliance with CBAM required meticulous tracking and reporting of carbon emissions across all stages of production and distribution.
The primary challenges faced by Sunrise included:
- Complexity of Data Management: With multiple suppliers and production units, gathering accurate carbon emission data was daunting.
- Regulatory Compliance: Keeping pace with evolving CBAM regulations demanded constant updates and in-depth understanding.
- Operational Efficiency: Ensuring that compliance efforts did not disrupt operational efficiency or inflate costs.
- Technological Integration: The need for a seamless technological solution that integrates with existing systems without causing disruptions.
Solution
Key Features of CleanCarbon.ai’s CBAM Solution:
- Automated Data Collection and Reporting: Utilizing AI and machine learning, the solution automates the collection of carbon emission data from various sources, ensuring accuracy and reducing manual efforts.
- Regulatory Updates and Insights: The platform continuously updates itself with the latest CBAM regulations, providing actionable insights to maintain compliance.
- Integration Capabilities: Designed to integrate seamlessly with Sunrise’s existing ERP and supply chain systems, ensuring minimal disruption.
- Carbon Footprint Analysis: Offers detailed analytics on carbon emissions, enabling Sunrise to identify areas for improvement and implement sustainable practices.
Implementation
The implementation of CleanCarbon.ai’s CBAM solution was executed in a phased approach to ensure a smooth transition and minimize operational disruptions.
Phase 1: Assessment and Planning
- Initial Assessment: CleanCarbon.ai conducted a thorough assessment of Sunrise’s operations, identifying key areas for data collection and potential integration points.
- Customized Planning: A detailed implementation plan was developed, focusing on priority areas and outlining a timeline for each phase.
Phase 2: Integration and Training
- System Integration: The CBAM solution was integrated with Sunrise’s existing IT infrastructure, including ERP and supply chain management systems.
- Staff Training: Comprehensive training sessions were conducted to familiarize Sunrise’s team with the new system and its functionalities.
Phase 3: Testing and Optimization
- Pilot Testing: A pilot phase was initiated to test the system’s functionality and identify any potential issues.
- Feedback and Optimization: Based on feedback from the pilot phase, CleanCarbon.ai optimized the system for enhanced performance.
Phase 4: Full Deployment
- Full Rollout: The solution was fully deployed across all of Sunrise’s operations, with ongoing support provided by CleanCarbon.ai to address any emerging issues.
Overcoming Challenges:
During implementation, one of the major challenges was ensuring data consistency across various sources. CleanCarbon.ai addressed this by deploying advanced data validation algorithms, which significantly improved data accuracy and reliability.
Results
The implementation of CleanCarbon.ai’s CBAM solution delivered impressive results for Sunrise:
- Enhanced Compliance: Sunrise achieved 100% compliance with CBAM regulations, effectively avoiding potential levies and trade barriers.
- Operational Efficiency: The automation of data collection and reporting reduced manual efforts by 40%, allowing the team to focus on other strategic initiatives.
- Cost Savings: By optimizing carbon emissions and reducing waste, Sunrise achieved a 15% reduction in operational costs.
- Sustainability Goals: The detailed analysis provided by the solution enabled Sunrise to implement sustainable practices, reducing its carbon footprint by 25%.
Data Visualization
| Metric | Before Implementation | After Implementation |
|---|---|---|
| Compliance Rate (%) | 75 | 100 |
| Manual Effort Reduction (%) | 0 | 40 |
| Operational Cost Reduction (%) | 0 | 15 |
| Carbon Footprint Reduction (%) | 0 | 25 |
Conclusion
The partnership between Sunrise Multi Tech Fasteners and CleanCarbon exemplifies how innovative solutions can transform compliance efforts into strategic advantages. By leveraging CleanCarbon’s CBAM solution, Sunrise not only met regulatory requirements but also enhanced its operational efficiency and sustainability.
