Business Challenges
Solutions
Microsoft Transforms Their Supply Chain with Sustainability in Mind
Microsoft is committed to achieving several environmental goals by 2030 , including becoming carbon negative , zero waste , and water positive . A key focus of this transformation is in its cloud supply chain , which supports more than 350 data centers worldwide .
Following the Covid-19 pandemic , Microsoft ’ s cloud supply chain scaled quickly to meet increasing demand for cloud services . Despite the common perception of the cloud being software-driven , it requires large amounts of physical infrastructure , including server racks , cables , and other hardware . The supply chain must source raw materials from multi-tier suppliers , move them through regionalized contract manufacturing partners , and ultimately deliver these components to data centers around the globe .
With a rapidly growing global presence , Microsoft needed to optimize its multi-tier supply chain network not just for speed and cost , but also for carbon emissions to meet its sustainability goals .
Business Challenges
Before adopting advanced modeling tools , Microsoft faced significant challenges . Their cargo volumes were increasing by 40-60 % year over year , resulting in a corresponding rise in scope 3 emissions from transportation . However , reliance on Excel spreadsheets and disparate data hindered their ability to make quick trade-off decisions across seemingly competing objectives : cost , carbon emissions , and cycle time .
Solutions
To tackle these challenges , Microsoft implemented Coupa Supply Chain Solutions , Powered by Llamasoft , to model its logistics network . Coupa ’ s Integrated Scenario Planning capability allows Microsoft to explore how different strategies — such as freight consolidation , inventory positioning , and distribution center placement — impact key metrics .
With Coupa ’ s capabilities , Microsoft has successfully reduced emissions by 60 % from baseline levels for its outbound trucking network in North America , all while accelerating delivery times and lowering transportation costs .
Additionally , Microsoft has made strides toward its zero-waste target by leveraging Coupa to design a circular supply chain network for its reusable packaging . They were able to model reverse logistics flows to minimize carbon emissions and costs associated with transporting packaging materials that are returned to suppliers and recycled .