In what’s claimed to be a first-of-its-kind, IBM has launched a tool that enables manufacturers to analyse and manage the carbon emissions impact of their supply chains.
Big Blue says that its automated Carbon Tradeoff Modeller allows organisations to understand the outcome of tradeoffs in order to make smarter energy and cost efficiency decisions by optimising service, quality, cost and carbon dioxide emissions.
Developed by IBM Research and Global Business Services, the new tool is said to model the interactions of factors driving supply chain CO2 emissions from both a manufacturing and distribution perspective.
It can also quantify the trade-offs between CO2 emissions reductions and other supply chain metrics, such as inventory levels and on-time, in-full delivery performance.
“To achieve a carbon efficient supply chain, companies need to assess the CO2 emissions impact of their end-to-end operations,” says Sanjeev Nagrath, global leader, supply chain management, IBM Global Business Services.
“By incorporating research-based tools to model the cost and carbon impact of key steps in the supply chain, organisations can now take action to reduce CO2 emissions and influence suppliers’ behaviour toward reducing their own greenhouse gas emissions,” he adds.
Key factors the tool examines include: packaging options, alternative operational processes, alternative transportation modes and energy sources, inventory policies, and sourcing policies.
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