IBM tool to help supply chains

International Business Machines Corp (IBM) has unveiled a consulting tool that allows companies to reduce both costs and carbon dioxide emissions in their supply chains.

The offering – which IBM calls the Supply Chain Network Optimisation Workbench, or Snow – comes as companies are under pressure to both slash expenses amid a slumping global economy and reduce impact on the environment.

Built with IBM-branded software, Snow helps clients review the number of distribution centres they need and decide whether to do manufacturing themselves or through a third party.

In a test, Chinese shipper and logistics company Cosco used the system to reduce the number of distribution centres it uses to 40 from 100, lowering costs by 23 per cent and cutting carbon dioxide emissions by 15 per cent, IBM said.

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