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Introduction
I NTRODUCTION
Supply chain management practices and strategies that reduce the environmental and energy footprint of freight distribution. It focuses on material handling, waste management, packaging and transport. The loosely defined term covers several dimensions related to production planning, materials management and physical distribution opening the door to a wide array of potential applications of environmentally friendly strategies along supply chains This implies that different stakeholders could be applying different strategies, all of which being labeled as green logistics.
GREEN LOGISTICS
Recycling Environmental efficiency
Green
Convergence?
Logistics
CONT
Organization of Options
Ecological Impacts:
Social Impacts:
M ETHODOGY
METHODS
Impact Analysis (Case Studies) Air Quality Considerations Logistics Companies Implementation Costs
O RGANIZATION
OF
O PTIONS
Logistic Activities
Emissions
Negative Impacts
Optimize logistics
Reduce emissions
Reduce exposure
Effect on Externalities
I. Impact Considerations
Application Types
A. Impact Assessment B. Policies and Projects
Options/Considerations
1. Exposure Metrics 1. Diversion based on location 2. Diversion based on timing 1. Employee Training 2. Equipment Condition 1. Fuel Efficiency 3. Combustion Improvements 1. Vehicle Standards 2. Fuel Standards 1. Intelligent Routing Systems 3. Online B2B Coordination 1. Vehicle Utilization 2. Intermodal Options 1. Terminals 2. Pavement Characteristics 1. Load Factor Requirements 3. Zonal Designations 5. Taxation 1. Goods Characteristics 2. Geography 3. Cultural 2. Weight Regulations 4. Temporal Restrictions 6. Market Creation 2. Real-Time Traffic Information 2. Fuel Changes 4. Post-Combustion Controls
A. Demand
A top-down approach where greenness is imposed on the logistic industry by government policies through regulations
A bottom-up approach where environmental improvements are coming from the industry itself through the adoption of best practices
A compromise between the government and industry, notably through certification schemes.
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P ARADOX
Cost
OF LOGISTIC
Time
Reliability
Warehousing
Information Technologies
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The Toyota 8-Series introduction in 2007 broke new barriers toward clean
emission technology, becoming the Worlds Cleanest Internal Combustion Lift Truck
Toyotas catalytic muffler system coupled with an exclusive closed-loop fuel system design that adjusts and optimizes the air-fuel mixture ratio, results in a very low emission lift truck that produces 70 percent less smog forming emissions than current federal EPA standaard
Toyota has also committed to at least 95% of the truck fleet being upgraded or replaced to EPA 2007 standards, and 50% being upgraded or replaced to meet 2010 standards by 2014. TIEM got Indiana Governors Award for Environmental Excellence for Five Years of Continuous Improvement in 2006 The recognition was due in part to the companys complete elimination of solid waste (a zero landfill facility) and for reducing Hazardous Air Pollutants (HAPs) by 80 percent and Volatile Organic Compounds (VOCs) by 33 percent in both paints and solvents by reformulating the products.
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A PPLICATION
OF
G REEN L OGISTICS
Product design and production planning-The conventional focus of product design and development is the improvement of its commercial and competitive attributes such as price, quality, features and performance. This process is common for electronic goods as each new generation of a product (computers, phones, televisions) is quantitatively and qualitatively better Physical distribution-Concerned about strategies to reduce the environmental impacts of physical distribution, namely the transportation and warehousing processes Material management-Concerned about reducing the environmental impacts related to the manufacturing of goods in all their stages of production along a supply chain Reverse Distribution-concerned about activities and movements related to taking back consumed goods as well as waste to be recycled or discard
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THANK YOU
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Technology will improve the situation (to a limit). Fleet management, vehicle efficiencies. Attitudes will change; greenness can become a marketing tool.
Composite solutions
Paradoxical situation
Problems occur at all spatial scales, from the local through to the global, so a political response is inevitable. There are hopeful signs of greener attitudes in the industry.
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Distribution costs declined by around 13%. Inventory costs declined by around 5%.
The environment or society at large pay the indirect costs. The logistics industry has largely escaped governmental attempts to charge for externalities.
Some estimates put costs as twice the revenue generated by vehicle taxation.
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TIME / SPEED
Logistics has given rise to two fundamental features of the contemporary economy:
Trucking. Air.
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Modal reliability
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Inventory reduction:
Inventories are in transit. More links are added to the production chain, with more traffic movements added overall. A form of externality.
E-Retailer
Traditional marketing involves consumers going to shopping centres for their purchases. New systems require large distribution centres on the edge of cities from which small parcels are delivered to customers. The system uses the most polluting modes.
Warehousing
Customers 20