2. TOPIC TO BE COVERED…..
• Introduction of green logistic
• Drivers of green logistic
• Green logistic management
• Control and compliances
• Responsiveness of green logistic
3. Environmental problem
Out of 1,62 billion tons of truck emission in Europe.
The availability and price of fuel.
Up to 80% of warehouses energy consumption is due to lightning.
252 million tone of packaging is used annually in the consumer
industry- half paper, half plastic.
Production of the paper required 7million trees to be felled.
Aerodynamic drag is responsive of 40% of fuel consumption of
heavy duty trucks of motorway speed.
Truck represent 80% of the group’s road emissions.
5. Introduction of Green logistics
Logistics are at the heart of the operation of modern transport
systems systems and implies a degree organization and control over
freight movements that only modern technology could have brought
into being.
Greenness has become a code word for a range of
environmental concerns, and is usually considered positively. It is
employed to suggest compatibility with the environment, and thus,
like logistics is something that is perceived as beneficial.
When put together the two words suggest an
environmentally friendly and efficient transport and
distribution system.
6. Cont…
The main objective of Green logistics is to coordinate the activities
within a supply chain in such a way that beneficiary needs are met at
"least cost" to the environment.
It is a principle component of reverse logistics. In the past “cost” has
been defined in purely monetary terms, where-as "cost" can now also
be understood as the external costs of logistics associated with:
climate change
air pollution
dumping waste (including packaging waste)
soil degradation
noise
vibration
accidents
7.
8. • Green or sustainable logistics is concerned with reducing
environmental and other negative impacts associated with the
movement of supplies.
• A good example of one Logistics aspect that poses great risk to
the environment is packaging.
• Packaging represents one of the greatest challenges to
environmental friendly logistics while at the same time being
vital in shipping and storage.
• Correct or incorrect packaging has consequences for how
much of a product can be stored, how it is stored and or
transported in a given space. This can increase to the unit cost
if the packaging hinders optimization of storage space.
9. Environmental Management Systems
(EMS)
• Logistics and transport activities have been identified as
having a major impact on the environment in which we all
live.
For example, excess carbon emission has changed the
environmental landscape, by destroying the ecosystem.
Indigenous forests have thinned out and changed rain patterns
thus impacting farming and food production.
• Consequently logistics and transport have attracted significant
legislation at both national and international level.
10. Cont…
The ISO 14000 series of standards provides a formal system for the
management of environmental matters.
The ISO 14000 family addresses various aspects of environmental
management.
The very first two standards deal with environmental management systems
(EMS).
ISO 14001:2004 provides the requirements for an EMS.
ISO 14004:2004 gives general EMS guidelines.
The other standards and guidelines in the family address specific
environmental aspects, including:
labelling.
performance evaluation.
life cycle analysis.
communication and auditing.
11. Drivers of Green logistics
Mounting energy costs.
Increasing power and fuel costs, together with the cost of related raw
materials used in infrastructure building and functioning has led to
chances for looking into green alternatives that can significantly lead to a
reduction in the price. Reducing the power consumed by IT apparatus,
energy efficient lighting and cooling, recycling can help develop the
bottom line in business financial sheets.
Worldwide alarms among corporate over GHG (Green House
Gases) emissions.
Many corporate policies now consist of targets for decreasing their impact
on the surroundings. With IT equipment, infrastructure and people having
a significant footprint in any business today, identifying and lowering its
impact is becoming very important. Green IT is thus as important to an
industrial manufacturer as it is to a telecom or an IT services organization.
12. Climate change
Global Warming impacts weather, ice-caps and glacier.
On an average, mountain glaciers and snow cover have
reduced in both the northern and southern hemispheres.
This widespread lowering in glaciers and ice caps has
contributed to observed sea level rise.
Regulations such as EPA (Environmental
Protection Agency)
Green IT knowledge and concerns are leading to the
development of legislations along all the areas. For
example ROHS (Restriction of Hazardous Substances)
13. Improved community awareness of
environmental issues.
• Widespread consciousness is likely to lead to privileged
choices in vendor selection based on Green IT practices. A
flourishing Green IT tactic is largely reliant on an end-to-end
obedience across supply chains, along-with sharing the best
procedures in companies across the supply chain.
14. Challenges
Implementing Green Logistics has never been easy. Some of
the challenges that Consumer Goods Organizations could face
are as follows:
I. Lack of information about the green supply chain best
practices:
The organizations might be left with a limited view because of
lack of information on decree and green supply chain best
practices. As previously construed investments costs do not
play a big role.
15. 2. Lack of tools to optimize the supply chain with environmental
management:
Though there are plenty of tools available for supporting Green
Supply chain initiatives, the challenge lies in selecting the right tool
for a particular initiative.
3. Advent of global sourcing making tracing of carbon footprint
difficult:
Since the advent of global sourcing, tracking the carbon
footprint of finished products have become difficult. However,
the practice of requesting carbon footprints from suppliers is
slowly progressing. One of the examples is the carbon
disclosure project that is being piloted by 11 multinationals
including Dell, L'Oreal and Unilever. The project asks
participating organizations to request carbon footprint
information from suppliers and promote emission reduction
measures across the supply chain.
16. Possible Areas for Improvement
Areas where improvement can often be made are:
reduction of water wastage by using simple water recycling
methods;
avoidance of pollution of watercourses with run-off from fuel
dispensing areas by using interceptor tanks;
careful management and monitoring of other hazardous chemicals
on site;
keeping pallet stacks tidy; and
better management of the production, collection and disposal of
waste.
17. Cont…
For vehicles, consider the following:
driver training reduces accidents and improves fuel
consumption;
monitor fuel consumption;
monitor vehicle utilization in terms of both payload and empty
running;
follow preventative maintenance programmes as a poorly
serviced vehicle uses more fuel; and
dispose of used tyre casings responsibly.
18. Drivers of Green logistics
Mounting energy costs.
Worldwide alarms among corporate over GHG (Green House
Gases) emissions.
Climate change.
Regulations such as EPA (Environmental Protection Agency)
Improved community awareness of environmental issues.
19. Green logistic companies
• Fujitsu
• HP Logistics
• BALAJI MARILINE PVT LTD
• SKS Transport Company
• Om Murugan Packers & Movers
• SARASWATI LOGISTICS CARRIER
• JET COURIER & CARGO SERVICES
• MATA RANI PACKERS AND MOVERS
• NEEL VIMAL CARGO PVT LTD
• NTL logistics plus
21. Fujitsu at a Glance
• Fujitsu is the leading Japanese information and
communication technology (ICT) company
offering a full range of technology products,
solutions and services.
• World's third-largest IT services provider and
No.1 in Japan.
• Over 170,000 Fujitsu people support customers
in more than 100 countries.
• Consolidated revenues of 4.5 trillion yen (US$54
billion) for the fiscal year ended March 31, 2012.
22. Continued….
• Fujitsu customers include nearly half the
Fortune Global 500.
Products…..
Fujitsu offers a full range of highly reliable
computing and communications products and
advanced microelectronics to deliver added
value to customers.
23. Fujitsu’s approach to green logistics….
Fujitsu activities for green logistics began in July
2003 when they launch a working group to
promote environmental prevention activities in
logistics.
Focus areas were…..
1. To measure transport related CO2 emissions.
2. To study and promote specific activities
towards reducing them.
24. Green logistics committee was formed in April 2006.
Targets….
1. Procurement to product transport.
2. Delivery
3. Recovery
Goal….
1. To enhance partnerships with transporters, group
companies and retailers.
2. To promote the reduction of environmental load.
3. To create environment friendly logistics that
maintains a balance of cost, lead time and quality.