Solutions
D-Carb
Sustainable Supply Chain Planning powered by SAP IBP
D-Carb enriches your Supply Chain Planning process with carbon footprint data, in order to support business decisions on your journey to decarbonisation. It allows you to walk the talk by providing the missing link between your climate strategy and your day-to-day planning activities.
The challenge
Recognizing both the severity of climate risks and the opportunities of a low-carbon future, more and more companies have made “net-zero” commitments, i.e. aiming at becoming carbon neutral in a specified timeframe (often by 2050) in order to be compatible with the Paris agreement and the “1.5°C pathway”.
However, when it comes to operationalizing these commitments, executives and supply chain leaders lack visibility on how to translate corporate climate strategies into concrete planning decisions. This is an issue since planning drives execution activities such as procurement, production, transporation or warehousing, and these activities are the source of most greenhouse gas (GHG) emissions in value chains.
Even if they recognize and are willing to play an active role in decarbonisation, planners may face the challenge of decoupling financial and/or operational targets from GHG emissions reduction targets, without having the necessary tools and metrics. You can change this.
The solution
D-Carb leverages the power of SAP Integrated Business Planning (IBP) software in combination with GHG emissions data in order to bring the “carbon dimension” into supply chain plans. Concretely, it integrates both indirect and direct product CO2e[1] emissions, such as those from purchased materials and energy, production activities, transportation, etc. These emissions in turn allow assessing an overall product carbon footprint along the value chain, depending on your company’s focus and defined scope.
In the context of Sales & Operations Planning (S&OP), D-Carb allows planners not only to take decisions based on demand, supply and financial drivers, but also on CO2e emissions. The output plan becomes a feasible, profitable and sustainable S&OP plan, which will flow down to execution, ultimately making operations more future proof.
[1] Carbon dioxide equivalent, encompassing other greenhouse gases (GHGs) with an equivalent global warming potential.
The flexibility and scalability of SAP IBP allows planners to create alternative scenarios on the spot and compare them against climate strategy targets so that they can choose the most suitable ones.
Business benefits
By making carbon emissions visible, D-Carb gives you the right tools and metrics to make your value chain sustainable and future proof.
Being able to assess your mid- to long-term carbon emissions allows you to take the necessary actions to ensure you meet your climate strategy pledges
Identifying carbon emissions reductions will uncover savings potential (e.g. raw materials, energy, packaging, transportation)
Having your future carbon emissions under control will allow you to reduce climate risks (both physical and financial)
The concerns of your customers, employees or investors are not just a trend; they are key to your survival as a company
D-Carb will enable planners and decision-makers to reach sustainability objectives while benefiting the business
Further outlook
Today carbon emissions may still be considered an “externality”. By internalising the cost of carbon emissions and using it as an input to the IBP supply optimizer algorithm, you can create supply chain plans that are truly cost-optimal on the long-term
Integrating CO2e emissions into supply chain plans is a first step towards seriously tackling the climate urgency. However, depending on material topics within your organizational and operational scopes, D-Carb can also integrate further environmental factors such as water, energy or land usage for instance, in order to get a more holistic picture of your environmental sustainability.
Contacts
Marcel Meyer - Partner
Marcel leads Deloitte Switzerland’s Sustainability services, Investment Management practice and is a member of the Board of Directors. He has 20 years of experience auditing and advising domestic and international clients primarily in the financial services industry, but also in real estate, trading and technology. As head of Sustainability services, he helps clients integrate sustainability in their strategy and operations focusing in particular on climate change and sustainable finance. He also provides independent assurance on sustainability reports and compliance with necessary regulatory requirements.
Fabio Bonci - Partner
Fabio leads the SAP Supply Chain Transformation offering for Deloitte Switzerland. He is an industrial and business administration engineer with over 20 years of experience in international consulting and SAP projects. Fabio is actively delivering ERP driven business transformations for multinationals. He has experience working in complex, multicultural and multinational organisations. His industry experience includes Automotive, Food, Consumer Products, Power & Automation Technologies, White Goods and Life Science.
Fernando Ferraro Maradei – Senior Manager
Fernando has multiple Supply Chain Management project experiences in consulting for consumer products, industrial products, life science, chemical companies and automotive industries.
His focus is on Supply Chain Planning Transformation Projects focusing on Business Process redesign (demand, supply, production), Inventory Optimization, KPIs, and Sales and Operations Planning (S&OP). He already acted not only as a consultant, but also as a SC manager within a global consumer products industry.
Besides Supply Chain Planning expertise, he has proven experiences in Supply Chain assessment, Control Tower, Network Optimization, Customer and Product Segmentation, Spare Parts Planning, Customer Collaboration and others.
Thank you to Martin Rejman, a key contributor for this article.