IBM tool helps companies cut costs and emissions

International Business Machines Corp unveiled a consulting tool on Thursday that allows companies to reduce both costs and carbon dioxide emissions in their supply chains.Built with IBM-branded software, SNOW helps clients review the number of distribution centers they need and decide whether to do manufacturing themselves or through a third party.

The offering -- which IBM calls the Supply Chain Network Optimization Workbench, or SNOW -- comes as companies are under pressure to both slash expenses amid a slumping global economy and reduce impact on the environment.In a test, Chinese shipper and logistics company COSCO Ltd used the system to reduce the number of distribution centers it uses to 40 from 100, lowering costs by 23 percent and cutting carbon dioxide emissions by 15 percent, IBM said.