July 18, 2008 - Small and medium-size businesses (SMEs) in the manufacturing and distribution sectors are seeing increasing value in adopting software applications that support green supply-chain initiatives, according to a new survey from IDC, an IT services firm.

"While the social responsibility for establishing green initiatives is now generally regarded as the norm for European companies, U.S. firms have been slow to embrace the technologies that would support this effort," says Judy Hodges, manager of IDC's research arm. "However, in our most recent survey we find that small and midsize manufacturers, wholesalers, and distributors in the United States are on the path toward leveraging innovative technologies to support a green supply chain."

Even small shops (those with fewer than 100 employees) are showing clear support for green initiatives, according to the survey.

The report indicates particularly high demand for IT solutions that:

• reduce supply chain risk and boost production efficiency,
• maintain inventory levels and reconcile inventory with front-office applications, and
• help find, train, and support a "green collar" workforce.

SMEs are also looking for mobile-enabled applications that support energy savings and cost reductions at all links in the supply chain, says the report.

A raft of new software tools have been released this year to address the business need for greener, leaner supply chains. In just the past six months, new IT offerings have been launched by IBM, ILOG, Profit Point, Logility, and EPS.