By Enterprise Innovation Staff | May 28, 2008

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IBM has unveiled a new tool that measures the climate impact of enterprise in the supply chain.

The software tool models the interaction of factors carbon dioxide emissions in both manufacturing and distribution in the supply chain.

Known as the Carbon Tradeoff Modeler, it is intended to help companies make smarter energy choices and better economic decisions by optimizing on service levels, quality, cost and carbon dioxide emissions.

It can quantify the tradeoffs between CO2 emissions reductions and other supply chain metrics such as inventory levels and on-time delivery.

It can help companies incorporate carbon reduction into their CSR strategy to reduce carbon emissions and potentially strengthen their brand.

"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.

The tool captures key metrics such as packaging options, alternative operational processes, alternative transportation modes and energy sources, inventory policies, and sourcing policies.