Firms looking to adjust their logistics could benefit from a new analytical tool created to optimise supply chains.
IBM's new tool allows companies to analyse the amount of carbon emissions in their supply chain.
Called the Carbon Tradeoff Modeler, the new system will allow businesses to understand how to save energy and money by optimising levels of quality, cost and carbon emissions.
Sanjeev Nagrath, global leader of supply chain management at IBM Global Business Services, said that firms needed to assess the impact of their CO2 emissions through their "end-to-end operations".
"By incorporating research-based tools to model the cost and carbon impact of key steps in the supply chain, organisations now can take action to reduce CO2 emissions and influence suppliers' behaviour toward reducing their own greenhouse gas emissions," he explained.
The new technology can tell businesses where they are going wrong and possible alternatives to fix the problem.
Shipment and package consolidation is a good opportunity to reduce emissions and the new technology can asses the impact of shipment frequency on cost and emissions enabling a more cost-effective and efficient system to be discovered.
