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IBM has created the Carbon Tradeoff Modeler, a tool that is meant to help companies analyze the climate impact of their supply chains. Developed by IBM Research and IBM Global Business Services, the modeler looks at the various factors that result in carbon dioxide (CO2) emissions from supply-chain activities, including manufacturing and distribution. It can quantify the tradeoffs between CO2 emissions reductions and other supply-chain metrics such as inventory levels and on-time delivery. It also identifies areas where CO2 emissions and costs can be reduced simultaneously. Specific issues addressed by the tool include the impact on emissions and service quality of packaging size and materials, lot sizes for transportation, order consolidation and inventory replenishment. Users can evaluate alternative supply policies in terms of their cost and climate impacts within the supply chain, IBM said. In addition, IBM's Institute for Business Value has released a paper entitled "Mastering Carbon Management." It examines how carbon management, energy consumption and other environmental issues can be approached in an integrated manner, so that companies can evaluate the relationships among key performance goals.
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