Book green logistics notes PDF

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some notes for sustianbale logistics course...

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Chapter 2 assessing external impacts of freight transport External impacts -

Atmospheric emissions  acid rain, photochemical smog Noise pollution Vibration Congestion Accidents Land use and bio diversity Waste (oil, scrapped vehicles) Visual intrusion

Mandatory standards: EURO emission standards, EU Sulphur directive Voluntary standards: Eco Management and Audit Scheme, ISO 14000 and 14001, Environmental management systems Measuring impacts -

Macro level assessment (top-down: total fuel consumption; bottom-up: distance travelled and fuel consumed) Micro-level assessment (by geographical area, company, customer, product)

Chapter 3 carbon auditing of companies, supply chains and products Carbon foot printing process 1. Setting objectives and building a process map Comply with legislation, better use of resources & cost savings, competitive advantage, improve attractiveness to potential supplier or investment community, product and service innovation, employee recruitment 2. Select calculation approach and define boundaries Control approach: include all activities over which company has control (finance and operation) Equity share approach: org. assumes partial responsibility for emissions 3. Data collection and choosing emissions factors 4. Calculation Fuel based approach: receipts, measurements, financial records Activity based approach: activity level by vehicle type, 5. Verification and disclosure Success factors in carbon foot printing Management support (devoting resources and information), cooperation along supply chain, straight forward data collection, timetable with milestones, employee involvement and understanding

Chapter 4 evaluating and internalizing environmental costs of logistics Monetary evaluation of environmental costs

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Cost of environmental damage Cost of avoiding environmental damage Cost of traffic congestion

Internalize through infrastructure tax, congestion tax, access charge, port dues, waste charge

Chapter 5 green logistics, sustainable development and CSR Triple Bottom Line (People, Planet, Profit) Stakeholders in CSR (suppliers, customers, media, authorities, bank and investors, employees, insurance companies CSR reporting GRI, SA8000, ISO 26000, Dow Jones Sustainability Indices CSR and logistics function Labor and human rights, wages, compensation, contract, working conditions, health and safety, job satisfaction, work hours, ethics, diversity Environmental indicator -

Actions to reduce impacts, emissions, energy consumption, waste generated, water usage

Social indicators -

Training and education, health and safety, employment statistics, diversity and equal opportunity Humanitarian logistics: help in crisis Work with universities

Chapter 6 restructuring road freight networks within supply chains Traditional network design Supplier  manufacturers  (distribution centers)  (retailers)  customers Strategic decisions: planning number, locations and capacities of facilities Tactical activities: inventory planning, layout of facilities, efficient allocation of resources Operational decisions: scheduling and routing, day-to-day flows, inventory  Can be done on daily/weekly basis Green network design 1. Modelling traditional network design considering environmental aspects 2. Modelling extended supply chain with recycling facilities Consider o number and location for packaging/product collection o effects on environment

o o o

simultaneous operational and environmental supply chain optimization incorporate goals in traditional analysis level and location of buffer inventories

Uncertainty in transport and supply chains Through: -

perceived demands production, value added process information on current performances disturbances (delays, breakdowns, absenteeism) decision points where information is combined transmission lags decision rules based on company procedures

prevent through flexibility and speed in sourcing, manufacturing and deliver Uncertainty mitigation approaches in road freight transport networks Uncertainty leads to extra distance and time

Chapter 7 transferring freight to greener transport modes

Chapter 8 development of greener vehicles, aircrafts and ships Increase carrying capacity improve energy efficiency reduce externalities

Chapter 9 reducing environmental impact in warehousing Stage 1: improve energy efficiency (heating, lighting, mechanical handling equipment, energy audit) Stage 2: harness green energy (low carbon renewable energy) Stage 3: design sustainability into buildings (solar power, floor heating, insulation) Not only for environment but also more cost efficient, saving up to 50%

Chapter 10 optimizing routing of vehicles Less (unnecessary) distance travelled  less costs

Drive each route in efficient manner (good route at right time) Capacitated Vehicle routing problem -

minimize total distance driven while satisfying all customers´ orders  software

Problem varieties -

time windows: hard constraint (delivery only in time window), soft constraint (outside time window at penalty cost) backhauls (return trip to original location): when customer doesn´t collect shipment pick-up and delivery: item picked up from one location and delivered to another different vehicles: nature of item, capacity, restrictions at customer location Open VRSP: after last delivery vehicle doesn´t need to return, instead go elsewhere Dynamic VRSP: rescheduling of customer requests ex. New traffic information Stochastic VRSP: when it is not known how much customer wants, will know at delivery Arc routing problems: visiting roads that to provide service/treatment (postal delivery, snow plowing/ salting) Transportation of hazardous material

Environmental impact -

Emissions auditing Routing and emissions Congestion: prevents from driving optimum speed

Chapter 11 opportunities for improving vehicle utilization Measuring vehicle utilization -

Tonne-kms per vehicle per year Weight based loading factor (how much they can take) Space utilizations/ vehicle fill Empty running

Factors affecting utilization of truck capacity -

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Demand fluctuation Lack of knowledge of loading opportunities Geographical imbalances in traffic flow Just in time delivery (lower inventory but higher number of low shipments) Lack of inter functional coordination (between purchasing and logistics staff) Priority given to outbound deliveries Lack of cooperation across supply chain o Horizontal collaboration: independent shippers work together (ex. Petrol: supply all gas stations in local area) o Vertical collaboration: ex. Distr. center deliver at supermarket  pick up at supplier  back to distr. Center Unreliable in logistics schedules (accidents, road work) Design of packaging and handling equipment (stackability, too big packaging) Incompability of vehicles and products (not being able to collect on return route) Vehicle type and wright restrictions

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Health and safety regulations Capacity constraints at company premises (

Chapter 12 increasing fuel efficiency in the road freight sector Fuel efficiency of new trucks -

Vehicle design: aerodynamic profiling Reducing vehicle tare weight Vehicle purchase decision Vehicle maintenance (under inflated tires, misaligned axes, fuel leaks, poor combustion) More fuel effective driving (monitor harsh braking, acceleration, over speeding timely gear changing, leave engine on: incentives) Fleet management: Right vehicles for right jobs

Chapter 13 alternative fuels and freight vehicles: status, costs and benefits, and growth State of development of alternative fuels for freight vehicles -

Biofuels (biodiesel, bioethanol and biogas) Gas fueled vehicles (Natural gas: methane, liquified petroleum gas (LPG) Hydrogen and fuel cell power trains Electric and hybrid vehicles

Chapter 14 sustainability strategies for city logistics Problems for freight companies -

Traffic flow/congestion Access restrictions Parking and unloading Queuing at receiver

Who can implement changes to system? -

Public policy makers Freight transport companies (adapting to policies) Receivers (change receiving times)

Initiatives to improve sustainability -

Infrastructure man. Parking/loading man. Emission standards, noise prevention Traffic management (access and time restrictions) Pricing, incentives and taxation Logistical management Freight demand/land-use man. Environmental zones/ weight restrictions

Chapter 15 e-business, e-logistics and the environment Environmental impact of B2B marketplaces -

A-B-C, companies can bid for return loads

Environmental impact of B2C e-commerce -

Failed or repeated delivery Returned products Degree of vehicle substitution

Opportunities for improving environmental performance -

Wider adoption of unattended delivery Increase online shopping to increase load factor Improve environmental performance of vans Use couriers and crowd shipping

Chapter 16 reverse logistics for management waste Process of planning, implementing and controlling the efficient and cost effective flow of raw materials, in process inventory, finished goods and related information from the point of consumption to the point of origin, for the purpose of recapturing value or proper disposal -

Type A: integrated outbound and returns network Use of own or logistics providers´ vehicles, own gatekeeping (checking)

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Type B: non-integrated outbound and returns network 3PLs (own gatekeeping) Type C: third party returns management 3PLs who do gatekeeping Type D: return to suppliers

Managing waste as part of a sustainable reverse process -

Schemes to help SMEs Co-collection of domestics and commercial waste Commercial bring sites and HWRCs Networks for return management

Chapter 17 a food miles debate: is shorter better?

Chapter 18 the role of government in promoting green logistics...