IBM Decision Optimization
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IBM R&D Report Highlights the Value of Network Modeling-- 25% reduction in costs, 15% recduction in CO2
A recent brochure from IBM Research noted that "for the last 60 years, Research has been one of IBM's key differentiators in the marketplace, making the kind of discoveries that shape the future of business, government, academia, and society."
This brochure highlights work ranging from improved water management, to traffic management, to sensing complications in premature infants before they happen. This report also highlights the value of strategic network modeling.
The report highlights the work IBM did with the Chinese shipping giant, COSCO. They were able to reduce the number of distribution centers from 100 to 40, reduce logistics costs by 25%, and reduce CO2 emissions by 15%.
The image shows the conceptual view of the before and after of the supply chain.
Many firms are able to find savings like this through strategic network design studies.
For more details on some of IBM's software capabilities in strategic network design be sure to watch our two part (15 minute total) video: part one and part two.