Managing Automation - October 2007 - (Page 45)

Recognizing an opportunity to help manufacturers get a grip on these new requirements, enterprise software leaders As part of its Corporate Social Responsiare starting to inject carbon emissions tracking functionbility initiative, Lawson is upgrading ality into their product lines. its ERP platform to capture core emisSAP AG, Microsoft Corp., and Lawson Software Inc. are sions data. — Jeff Frank at Lawson actively exploring this area, mitting significant portions of their IT budgets to while Supply Chain Consulting in Australia is environmental compliance, according to a recent already offering a tool set and services to help survey by AMR Research Inc. In fact, nearly 54% companies capture, analyze, and optimize their percent of companies surveyed worldwide said carbon emissions footprint. they have already committed or plan in the next Supply Chain Consulting’s CarbonView, avail12 months to commit IT dollars to environmental able now, contains an underlying database of initiatives, specifically those relating to reducing key greenhouse gas emissions data that can energy use and emissions (see chart, this page). help users establish their baseline carbon footMost of these investments will be aimed at expanding core ERP and supply chain platforms with new capabilities for tracking carbon emissions. The extensions won’t just provide a static view, but will add dashboards and other business intelligence (BI) tools to capture and monENVIRONMENTAL PRIORITIES itor performance in real time. “This is an enterSurvey respondents were asked to describe what environmental initiatives they are curprise performance management issue, not a rently involved in or plan to be involved in within the next 12 months: compliance issue,” says Nigel Montgomery, reEnergy and emissions reduction/improve energy efficiencies search director at AMR. “We have a list of things 54% we adhere to: We need to maintain good quality; we have to keep costs down and be efficient in production runs. The emissions issue, while Recycling programs 52% covered from a regulator y point of view, was never prioritized. What’s changed is that emisWaste reduction/use less consumables sions has crept up the importance ladder so it’s 27% now one of those things we have to take into account, just like Six Sigma.” While steel companies have perhaps done more Support environmental associations/public initiatives than other industries to track and control carbon 19% emissions, much of their work has been at the operational level, usually managed and maintained Use eco-friendly and recyclable products/components by individual plants. The proposed legislation and 15% a potential cap-and-trade system would demand a consolidated view so that management has visiDurable/hazardous waste management bility into a company’s total carbon footprint. More13% over, the bar will be raised so that companies not Source: AMR Research Inc. only are reporting on their emissions, but also this summer with the Low Carbon Economy Act of 2007, introduced by Sens. Jeff Bingaman, DNM, and Arlen Specter, R-PA. The bill proposes limits on carbon emissions and sets the stage for a cap-and-trade system, modeled after Europe’s, where companies can buy and sell carbon emissions credits on the open market. Although still a long way from ratification, the bill would likely mandate that companies track and report on their carbon emissions as well as execute credit transactions with other manufacturers. The problem is that most U.S. steel and metals makers don’t have a clear picture of their carbon output. Nevertheless, most companies are com- have the visibility to factor emissions output into their daily business decisions and execute potential trades. “For example, a supply chain director considering expediting an order for a customer needs to be aware of what the implications of that decision are in terms of carbon output,” Montgomery explains. “We already have visibility of cost and customer service information to make those kinds of decisions, but we’ve never had information surrounding the environmental impact.” BALANCING ACT Industry Snapshot Photo courtesy: Lawson 45 October 2007

Table of Contents Feed for the Digital Edition of Managing Automation - October 2007

Contents Take 1 Mailbox New Selling and Fulfillment Product Leads Plan to Transform Sterling Commerce Comtrol Closes Bizarre Chapter Involving Founder New Omron COO Outlines Four-Part Growth Agenda New Mfg. ‘Czar’ Will Have a Full Plate of Issues Lawson Embraces The Trend of Fewer Upgrades Notes Wanted: A Unified Infrastructure Needed: Greater Reliability Special Report: Innovation: Why Are So Many Coming Up Short? Transforamation: Beating the Odds in Global Supply Industries: Metals: Tracking Carbon Footprints Product Scan Advertiser Index Next

Managing Automation - October 2007

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