SimFlex is a suite of value chain planning tools enabling companies to design, test and deploy robust and lean end to end value chain solutions. SimFlex solutions provide significant cost savings and increased sales through optimal value chain design, efficient asset utilization, improved service levels and greater agility.
ENVITM#
As concern about climate change climbs to unprecedented levels, one of the most important steps that a company can take to address it is to establish a sound and credible platform to account for and report greenhouse gas (GHG) emissions. Supply Chain activities create significant GHG emissions, making supply chain an important focus for clients seeking to reduce their carbon footprint. SimFlex ENVITM solution provides a robust platform to measure, track, analyze, model and optimize its end-to-end carbon footprint.Carbon Management and Supply Chain#
Global warming has initiated several regulatory requirements to reduce greenhouse gas emissions worldwide. Supply chains carry a heavy burden of achieving this goal – from sourcing to production to distribution and service. Supply Chain trade-offs have gone beyond just cost, service, quality and now include carbon. By incorporating carbon reduction in their overall supply chain management strategy, companies can help reduce their carbon footprint , strengthen their brand image and develop a competitive advantage.
In the last decade the global trade volume has more than doubled resulting in significant impact on the climate change. Shipping, production, warehousing, distribution and all other supply chain activities are contributing to GHG emissions. Companies would be expected to pay for their emissions in the future resulting in higher total supply chain costs. The goal will be to optimize supply chain products, processes, information and cash flow factoring in four major dimensions: cost, service, quality and greenhouse gas emissions.
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End-To-End Supply Chain Emissions#
Majority of supply chain activities add to GHG emissions. These include sourcing of raw material, manufacturing, warehousing and distribution and, most importantly, all the logistics involved in moving the products through the chain. Emissions are a result of energy and fuels consumed at all the nodes and between the nodes.
Electricity consumed for manufacturing comes from different sources such as coal-fired plants, hydro or renewable sources. Emissions vary depending on the type of electricity consumed. Transportation has different modes like air, rail, road and ocean. Based on the type of mode, frequency of shipments, fuel efficiency of vehicles and pallet loads, emissions would increase or decrease. All these factors have to be considered to measure and optimize the true end-to-end carbon footprint and trade-offs.
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SimFlex ENVITM#
SimFlex ENVITM is a suite of integrated environmental management systems that enable measurement of energy consumption and related GHG emissions in an enterprise, provide visibility and report carbon footprint of the end-to-end value chain.Through simulation and optimization technologies, SimFlex ENVITM optimizes the logistics network to minimize the carbon footprint of an organization thus reducing the total supply chain cost.
Key Features#
- End-to-End Supply Chain GHG Emissions tracking, analytical and reporting tool
- Automatic calculation of GHG emissions based on the type of energy consumed and type of transportation mode used.
- On-Demand, multi-user, multi-site and scalable solution
- Multi-dimensional reporting - Enterprise, Regional, Site, Product
- Integrated with SimFlex Network optimization tool for optimal Supply Chain design to minimize GHG emissions
- Follows the GHG reporting standards
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Benefits#
Through SimFlex ENVITM a company would:- Optimize the end to end supply chain to reduce carbon footprint and thus reduce the environmental impact of its products and/or service and total supply chain cost
- Minimize risk and liabilities through compliance
- Provide visibility to its energy usage and thus determine energy reduction initiatives
- Determine sustainable growth opportunities and competitive advantage
Summary#
Future regulations will prescribe carbon reduction methods. The cost of compliance would be increasing day by day as companies delay any initiatives for managing carbon in their operations. The time to tackle green house gas emissions is now.
As companies move from a reactive to a proactive stance in managing carbon, they can convert a cost issue into sustainable growth opportunities, competitive advantage and strong brand image. SimFlex ENVITM provides an integrated platform for companies to measure, track, analyze and model their endto- end supply chain GHG emissions. Through simulation and optimization models companies can determine their best supply chain strategy that offers a well-balanced performance around cost, service, quality and carbon emissions.
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