SAP Watch

Dec 22 2009   4:54PM GMT

Developing the right supply chain sustainability software

Mperkins Matt Perkins Profile: Mperkins

While supply chain sustainability software is key for green IT strategy, the software itself is still in its early stages.

SAP is amongst a host of vendors that sells some form of sustainability software focused on the supply chain. But it still may be a while before the industry sees software geared toward enabling green, end-to-end manufacturing. The reason? There aren’t really standards and methods at the moment for what should be tracked and reported.

That could begin to change next month, when AMR Research releases its first Sustainability Top 25 report — an index ranking the top 25 companies with the most sustainable supply chains. The list is expected to be released in January 2010, and subsequently will be published annually, just like the firm’s Supply Chain Top 25 ranking (on which the methodology for the new index is based).

AMR acknowledges that this index would join a slew of other like-indexes focusing on sustainability.

That said, many of the existing indexes, such as the Dow Jones Sustainability Index (on which SAP was named the highest-ranking software company this year), lack the ability to keep track of the operational sustainability of corporations, AMR Chief Strategy Officer Kevin O’Marah said at the recent AMR Sustainability Exchange event in Boston. 

Meanwhile, the need for an in-depth index to track performance and measure improvement continues to grow. As such, the Sustainability Top 25 will focus specifically on the operational standpoint of corporations and their supply chains, as opposed to a company’s overall approach to sustainable practice.

Will AMR’s new supply-chain focused sustainability ranking be the push vendors like SAP need to better develop their sustainability software?

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