TABLE OF CONTENTS:

INTRODUCTION...................................................................................... 03

SCOPE OF STUDY.................................................................................. 03

IMPORTANCE OF GREEN LOGISTICS................................................... 04

GREEN LOGISTICS IN McDonalds........................................................... 04

CONCLUSIONS......................................................................................... 07

REFERENCES.......................................................................................... 07

1.INTRODUCTION: Logistics can be defined as the process of planning, implementing, and controlling the efficient, effective flow and storage of goods, services, and related information from point of origin to point of consumption for the purpose of conforming to customer requirements. (Council of Logistics Management, http://www.clm1.org/mission.html, 12 Feb 98). Green Logistics is a part or a type of logistics that plans all the activities for the production and distribution of goods services, but at the same time it gives importance to social and environmental factors as well. It includes the following components: 1.) Transportation of resources. 2.) Reverse Logistics. 3.) Proper management of stocks or inventories.(warehousing).

Green Logistics not only takes into consideration the policies of logistics in a company but also its effect on the society such as pollution , and other environmental hazards. It also helps in reducing the wastage of resources, reducing the firms energy use and also proper management of their resources.

2.SCOPE OF STUDY: This assignment is concerned with the study of Green Logistics in McDonald s, one of the top fast food restaurants in the world. This restaurant has outlets in more than 1oo countries. The reason why this particular company have been selected for the study is because it has branches in almost all countries and it uses all the components of Green Logistics. This study tells about the Green Logistics initiated in McDonalds and its implications on the companies and the society as a whole. It also tells about the different steps adopted by the company in for promoting a green environment.
2

3.IMPORTANCE OF GREEN LOGISTICS: Green Logistics is a branch of logistics which is becoming very popular nowadays. The rising number of CO2 emissions has urged many governments; firms and other agency to find a reasonable way to balance both production and reduce the hazard in environment. They have understood that for a business to sustain in a long run proper planning for increasing profit alone is not sufficient.

4.GREEN LOGISTICS IN McDonald s: McDonald s management have planned and introduced many steps for the implementation of Green Logistics in their system. Some of the activities done by McDonald s are as follows: 1.) Transportation: Transportation is about transporting goods or persons from one place to another. In Green logistics transportation involves planning the ways and methods of transporting in such a way that it help in reducing the cost of using the resources and also help in preventing wastage of resources. In McDonald s have understood that they are spending huge amount for transporting of raw materials, their products and also for their promotion. To reduce the consumption of petroleum, to reduce the CO2 emissions, to promote use of public vehicles etc McDonald s have introduced some techniques. Some of them are mentioned below:  Biodiesel-Plan: With the main objective of reducing the consumption of petroleum the company had started a biodiesel project which aims to use the used cooking oil and enable them to be used as an alternative to the current fuel. The project enabled the company to drive majority of their trucks with the Home Grown biodiesel.

 Combination of trucks and trains: The company depend a lot on trucks and transporting their goods across places. And hence it have come with a plan i.e. to load containers onto the trains, this helps in reducing the CO2 emissions, reducing the congestions in traffic, and there by it helps in reducing the air pollution and noise pollution. In order to put this plan into action the company designed special trucks. This plan w as mainly targeted to the outlets which were located in a long distance from the place of distribution.  Encouraging use of public transport- With the aim of social commitment the company encouraged its customers to avoid use of their private vehicles and relay on public transport. It helps in reducing the CO2 emissions; the company even offered tickets to its employees at half price.  Holistic strategy: With a holistic strategy in mind the company gives proper training to its drivers on how to drive with saving maximum energy. It also takes the shortest route which gives allows them to save maximum of their resources.  McCharge: In order to promote green environment the company had started charging point for electric cars in some their restaurants. This was introduced as an pilot project in Sweden. The customers can recharge their cars without paying any extra cost.
2.) Reverse Logistics: Dowlatshahi (2000) defines it a process in which a manufacture systematically accepts previously shipped products or parts from the point for consumption for possible recycling, remanufacturing or disposal . (http://www.scribd.com/doc/45266315/Green-Logistics) in short it can be called as a reverse flow of finished goods either from disposed area or from warehouse. McDonalds have understood that all the items they produced are not sold or not utilised properly, since all the items cannot be stored for a long period of time, it have to be disposed, and hence wastage occurs. The package and covers also add upon to them. To reduce all these wastages they came up with some innovative ideas.  Cardboard-recycling: In order to cut down the quantity of waste disposed due to the packaging the company have started recycling of the cardboard,

which helps in reducing the amount of waste to the landfill as well as preventing the existing resource being used more often. Recycling system: McDonald s have introduced their own recycling system where it separates the items for disposal which include oil, paper, food items etc. These are then recycled according to its each of the concerned manner. McDonalds in Netherland recycles 95% of its waste . (http://www.bestofgreenmcdonaldseurope.com/downloads/Recycling_all_ case_studies.pdf) Trends in bags: Company modified its bags by adding attractive offers into it. By doing so the company had helped in reducing the waste disposal. And importantly it also helped in reducing the cost . E-help: the company (Hungary) has a software called MCEnvi , which helps in reducing the waste. It helps in identifying and reducing the cost of waste. It also helps in forecasting it for the next periods. Electricity generation: The Company had started to convert the waste into electricity and heat. This has been started by them in order to reach a zo ne of 0 waste. Sorting: The Company introduced a scheme of sorting the waste properly. For this purpose the left-over s are sorted into different types based on the type of product which include papers, food, cooking oil, plastic containers etc. The sorted items are then processed for recycling. Attractive design: The Company had introduced an attractive container which is used for the purpose of recycling. The aim of designing this was to attract more and more customers and also to promote re- use and recycling of materials. The new design was well appreciated by the customer and it helped the company in improving its recycling of materials. Superlizzy: This was a tool which was used for separating waste. It helped in separating the liquid waste from the rest and hence handling of it was much easier. It requires less space, it also helped in reducing the time for disposing the waste. (http://www.bestofgreenmcdonaldseurope.com/downloads/Recycling_all_ case_studies.pdf) 3.) Warehousing: It means proper storing of raw materials or even the finished products until the time of its utilisation. In this the
5

goods are to be stored in the condition which include storing goods with proper temperature, care etc. It should be prevented from any sorts of damage. Mc Donald s mostly have self storage facility. The numbers of warehouses are almost similar to the number of branches the company have. The products are stored in such a manner that, it can be properly utilised and also with an ease.

5.CONCLUSIONS: Logistics is required by almost all the firms it helps them in properly arranging all the activities in their supply chain. By adopting Green Logistics McDonalds have reduced their overall cost of production as there was considerable reduction in the cost of transportation, cost of packing etc. Also the innovative ideas such as Mcharge etc also had a positive impact in mid set of consumers .

REFERENCES: 1.) Council of Logistics Management, http://www.clm1.org/mission.html, 12 Feb 98. 2.) http://www.scribd.com/doc/45266315/Green-Logistics. 3.) http://www.bestofgreenmcdonaldseurope.com/downloads/Recycling_al l_case_studies.pdf. 4.) Alan Mckinnon, Anthony Hiteing, Sharon Cullinane, Michael Brone; 2010; Green Logistics, Improving the Environmental Sustainability of Logistics)