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Increasing efficiency of logistics

IBM is reducing the CO2 emissions associated with transporting parts and products through the efficient design of its packaging, working with suppliers on their packaging designs and optimizing logistics.

In 2006, the company joined the U.S. EPA's SmartWaySM Transport Partnership (link resides outside of ibm.com), a voluntary initiative to improve fuel efficiency and reduce greenhouse gas emissions associated with logistics operations.

In 2008, 86 percent of IBM's spending for shipping goods within the U.S. and from the U.S. to Canada and Mexico was spent with SmartWay carriers. IBM also committed to ship 100 percent of its IBM System z® and supercomputer product families to customers in North America (within the U.S. and from the U.S. to Canada and Mexico) exclusively using a SmartWay carrier. This commitment makes IBM part of a select fewSmartWay shippers allowed to use the SmartWay logo on product packaging for these product families and shipments. IBM also voluntarily applies specific SmartWay requirements to its distribution operations globally.

IBM received a 2007 SmartWay Excellence Award in recognition of its leadership.

Modeling Tools:

IBM Global Logistics has been analyzing its logistics transaction level data and utilizing an IBM developed tool, the Carbon Trade-Off Modeler, to model the interaction among various levers: transportation mode, fuel, packaging weight, load consolidation, alternate sourcing and service level agreement. This initiative has enabled IBM Global Logistics to make decisions that optimize the benefits identified from the Modeler across these levers.