Steelwedge Software |
| Tornadoes, Heat Waves, Carbon Emissions and Business Planning (S&OP): An Action Plan Posted: 12 Jun 2011 10:51 PM PDT Steelwedge has made a commitment. We will reduce carbon emissions by 100 million tons over the next decade. How will Steelwedge enable its customers to reduce their carbon emissions? While this may seem a rather daunting, even absurd goal, the Steelwedge team has over a decade of experience reducing inventory levels, improving transportation network efficiency, and driving down inventory waste through the adoption of world-class, technology-enabled business planning practices. For example, several of our Fortune 100 customers have reported inventory reductions of as much as 18% through adoption of the Steelwedge cloud-based sales and operations planning (S&OP) solution. This has a direct impact on reducing carbon emissions. Our best estimate is that a company that adopts world class, technology-enabled business planning practices should expect to reduce their carbon footprint by up to 10%. So what's the context? Under the ill-fated Kyoto Protocols, originally drafted in 1997 and revisited in Copenhagen in 2009, it was envisioned that the United States would reduce its emissions by 17% or approximately 991 million tons. Globally, the reduction would have to be 5.2 billion tons. An equally ill-fated attempt to pass a US Senate bill in 2010 incorporated similar goals. Globally, a goal has been to reduce carbon emissions growth to reduce the global growth of carbon emission such that global carbon production does not exceed 40 billion tons (gigatons) in 2020. Why is this a challenge? Developed countries would have to cut their emissions by 25 to 40 percent by 2020 over 1990 levels, while developing countries would have to slow their emissions by 15 to 30 percent below current forecasts. How does the Steelwedge carbon emission target relate to industrial manufacturing? Our goal is to reduce global emissions of industrial carbon by 0.9%. This equates to… |
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