Skip to main content

The push towards sustainable manufacturing has led to an urgent need for strategies that can simultaneously reduce costs and carbon emissions. As regulations tighten and consumer demand for low-emission vehicles grows, manufacturers, especially in the automotive industry, are finding themselves in a race to deliver greener cars. These vehicles must not only be competitively priced but also boast a reduced carbon footprint.

Achieving these goals requires a comprehensive understanding of the carbon footprint across various phases such as materials sourcing, manufacturing processes, transportation, and more. An actionable decarbonization roadmap is essential, enabling manufacturers to assess both the cost and carbon emission impacts of various strategies and set appropriate targets. This often necessitates close collaboration across multiple business functions, including design, procurement, and manufacturing teams. For example, making informed decisions about material substitution demands that design teams work closely with procurement and manufacturing counterparts. Additionally, evolving customer preferences must be factored into sustainability decisions.

To effectively monitor and manage both cost and carbon emissions throughout their value chains, companies need robust calculation solutions. Particularly when it comes to addressing Scope 3 emissions as per the greenhouse gas protocol, it becomes crucial to have detailed, granular source data. The carbon footprint of materials and components can vary significantly based on factors like production location and transportation methods. As sustainability efforts extend into complex global supply chains, standardizing and automating the calculation process of supplier cost and carbon footprint becomes increasingly vital.


Leveraging technology for enhanced sustainability and cost management

Teamcenter-Product-Cost-ManagementTeamcenter Product Cost Management offers a comprehensive solution by integrating a bottom-up approach to modeling both the cost and carbon footprint of products. This tool allows stakeholders to evaluate trade-offs during the development process. Questions such as, “What are the costs and carbon footprint for in-house produced products or purchased parts?” and “What if we switch between plant locations, which differ in automation levels, power-grid emissions, and transportation costs?” can be addressed efficiently.

This solution not only provides clarity at different decision points during product development and procurement but also assists teams in choosing the right technology for procured subcomponents by offering insights into their emissions and costs.


Empowering Large-Scale sustainable transformations

Implementing Teamcenter Product Cost Management within the broader Siemens Xcelerator portfolio enables companies to undertake large-scale transformations. These transformations can generate actionable insights across their portfolios, from baselining cost and carbon footprints to evaluating economical carbon reductions and setting specific decarbonization targets. Such insights can drive directed actions, enabling decision-makers to create business models that add value and differentiate their companies in a competitive market.

By effectively integrating insights from Teamcenter Product Cost Management, companies can elevate their green ambitions, ensuring compliance with regulatory demands and catering to a new generation of sustainability-conscious consumers.

Sofie Wendt
Post by Sofie Wendt
May 16, 2024