IBM Launches Carbon Management Tool to Improve Supply Chain

IBM's Research and IBM Global Business Services created the Carbon Tradeoff Modeler, a tool that recommends best practices to reduce carbon dioxide emissions by analyzing packaging options, alternative operational processes, alternative transportation modes and energy sources, inventory policies, and sourcing policies. The tool can also quantify the tradeoffs between CO2 emissions reductions and other supply chain metrics including inventory levels and on-time delivery.

"To achieve a carbon efficient supply chain, companies need to assess the CO2 emissions impact of their end-to-end operations," said Sanjeev Nagrath, Global Leader, Supply Chain Management, IBM Global Business Services, in a statement. "By incorporating research-based tools to model the cost and carbon impact of key steps in the supply chain, organizations now can take action to reduce CO2 emissions and influence suppliers' behavior toward reducing their own greenhouse gas emissions."

The product was borne out of results from IBM's 2008 Corporate Social Responsibility study and separate IBM research that showed that corporate social responsibility topped the list of concerns for chief executives. According to IBM, social responsibility is quickly becoming a revenue growth platform for businesses, as clients have been increasingly vocal about transparency and accountability issues from organizations they do business with.

By using the automated Carbon Tradeoff Modeler, IBM said that companies can use carbon emission results in their CSR strategy, and flaunt the findings to boost their brand.