Download - Role of-ict-in sustainabilty-sgd
Role of ICT in Sustainable Freight Transport & Logistics
Dr S G DeshmukhDr S G Deshmukh
Director, ABV-Indian Institute of Information Technology & Management [email protected]
International WorkshopNext Generation Sustainable Freight Transportation 8 Aug 2013 at IIT Delhi
Opening quote….
“We do not inherit the earth from our ancestors, we borrow it from our children…
Native American Proverb
Source: Source: http://www.drury.edu/multinl/story.cfm?ID=11595&NLID=259www
Issues
• How do we define sustainability?
• Who are the stakeholders?
• What are the impacts of ICT?
• How to measure impact of ICT?• How to measure impact of ICT?
• Can we develop a score card?
• Action plan?
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Issue 1 : Sustainability
SustainabilityThe possibility that human and other forms of life on earth will flourish forever
-- John Ehrenfeld, Professor Emeritus. MIT
Sustainable Development (SD)Meeting the needs of the present generation without compromising the ability of future without compromising the ability of future generations to meet their own needs-- Brundtland Commission, 1987 –
Core Concepts of Sustainability
Futures Thinking
Intergenerational responsibility, No-harmful effect
Technology
(Eco-)Systems Thinking
Carrying capacity of the planet to absorb waste and Carrying capacity of the planet to absorb waste and
support life without harming anyone
Social Justice
Equity, Basic services, Human values ,
Stakeholder voices, concern for all
Economic, Environmental, Social/Culturalresponsibilities of business/stakeholders
Sustainability
Economic LegGood JobsFair wagesSecurity
Social LegEnabling working conditions Inclusive education Community & CultureEquitable justiceSecurity
InfrastructureFair Trade
Equitable justice
Environmental LegZero Pollution &WasteEnergy ConservationMinimum disturbance to Mother Nature
Source: Willard B, 2009, “The business case for sustainability”, Green innovations conference, www.sustainabiltyadvantage.com
Example : Sustainable Supply Chain Management (SSCM)
• SSCM is all encompassing, strategic set ofactions taken by collaborating partners andstakeholders of an ultimate supply chain toimprove chain’s profitability along withmitigation/elimination of the detrimental impactsof all business activities spanning across thechain on the environment, society, culture,chain on the environment, society, culture,values, health and safety of all stakeholders andthereby ensuring the continuity of operations inthe larger interests of all stakeholders.
Apratul Shukla, 2011, Critical Analysis of Supply Chain Management in Indian Context: A Case of Suitability, Scalability and Sustainability, Ph D Thesis, IIT D
Sustainability in the context of Supply Chain • Deteriorating environmental condition• Role of complex, long and global supply chains in deterioration of the
environment needs investigation.• Growing interest as managers are forced to deal with social and
environmental issues, related to supply chain (Vachon and Klassen,2006).
• Every product generated, transported, used and discarded causes impact on the environment, (Greenen et al., 2006).
• 3Ps and Triple bottom line (Elkington, 1994 )• 3Ps and Triple bottom line (Elkington, 1994 )• Climate change and Supply chains activities are related.
Corporate social responsibility
Sustainable supply network management
Supply chain environmental management
Green purchasing strategies
Environmental purchasing
Green marketing
Environmental marketing management and environmental product differentiation
Reverse logistics
Environmental management
Life-cycle assessment
ISO 14000- Certifications
Sustainable Supply Chain Activities
Primary Industry
Production Finished products distribution
Retailing
Greener forms and factories
Soil, water, air contamination
Health and safety
Fair wages
Inbound distribution
Green fuel based vehicles
Full truck loads
Congestion Vehicular
pollution
Design for sustainability (DfS)
Life cycle cost analysis
Green and clean process
Consolidated loads
Reusable pallets and trays
Recycling of packaging
Sustainable product selection
Sustainability as differentiator
Proper
Responsible Consumer
Recycle and reuse of products and packaging
Judicious use of product
Avoid over
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Fair wages Local
community Waste mgmt. Prevention of
bio-diversity Emissions and
working conditions
Energy efficient processes, technology, lighting and buildings
pollution Cold storage Frozen and
cold vehicles Leaks and
emissions during transport
Avoidance of child labour
Packaging waste
Fare wages Equality for
women workers
process technology
Eco-friendly packaging
Waste management
Energy efficient machines and processes, buildings
Labour welfare Health and safety Wages Lean
manufacturing Material usage Water, soil and
air pollution
packaging material
Green fuel based vehicles
Reverse logistics
Energy efficient warehouses and cold storages andvehicles
Emission and leak control
Safety in material handling
Proper lebelling
Conformance to standards in storing and packaging
Energy efficient storages and buildings
Information sharing with customers
Health and safety
Carrier bags and packaging
Avoid over consumption
Energy saving devices
Use of take back system
Return of packaging material
Waste disposal
Change in habits and attitude
Social responsibility
Issue 2Stakeholders : Sustainability Cloud Model
EmployeesNGOs
Food and Water
Waste and Toxicity
Social Justice
Employees
Customers
Media
Chain Members
Solution Providers
NGOs
Academia
Markets
Governments
Insurers
The Public Investors
BanksNonfinancials /
Reputation
ICT …
• Information and communication technology (ICT) is a set of heterogeneous technologies (hardware and software) that allow for electronic communication, data collection and processing in distributed networks. processing in distributed networks.
• ICT differs in complexity, ranging from simple electronic communication, like e-mail, to interactive and highly intelligent applications in traffic management and control systems, and in value webs.
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Various ICT Solutions
Sn Solutions
1 Continuous communication (satellite, web based)2 Goods monitoring3 Information systems for inland navigation 3 Information systems for inland navigation 4 Information systems for intermodal transport 5 Intelligent cargo information system6 Traffic management of individual vehicle/fleet7 Integrated Custom information system 8 Route Planning & Optimization System
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Issue 3:Impact of ICT solution - Information systemsfor Intermodal Transport
Sn Impact
1 Reduced GHG , ozone depletion Reduced GHG , ozone depletion 2 Promotion of green corridors3 Return & recycle of empties4 Efficient load factor 5 Paperless operations
Effective monitoring8/10/2013 13
ICT Benefits
1 Mapping the location of vehicle on e-map2 Control of engine parameters 3 Allowance for fuel consumption 4 Temperature & other parameter control4 Temperature & other parameter control
5 Online tracking of Cargo 6 Calculation of optimal routes7 Electronic Documentation Management 8 Reporting of abnormalities
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Key logistics activities indicators (KPI)
Sn KPI
1 Total Logistics cost 2 Quality of logistics services 3 Lead time in logistics cycle 4 Productivity (Infrastructure, personnel)5 Investment in logistics infrastructure6 Wastages
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Issue 4Scorecard: Pyramid of “Value”
TangiblesFinancials
Intangibles - NonfinancialReputation – GoodwillBrand ImageStakeholder RelationshipsSocietal Impression
Source: Willard, 2009, “The business case for sustainability”, Green innovations conference, www.sustainabiltyadvantage.com
Issue 4:Scorecard - Sustainable Pyramid
TangiblesFinancials
20%
IntangiblesNonfinancials
Reputation80%
Scorecard in terms of ..
• Environmental performance
• Economic performance
• Health & Safety performance
• Societal performance• Societal performance
• Cultural & Ethnic performance
Each of the above to be evaluated for• Customer perspective, Internal perspective• Learning perspective, Financial perspective
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Sustainability Scorecard
Environmental performance
Economic PerformanceVision and strategy for
Health and Safety Performance
Customer perspective- Increase in product safety
Internal perspective- No. of accidents/
incidences/ year Learning and growth
Customer perspective-Customer query time
Internal perspectiveInventory turn over ratio
Customer perspective- Reduced packaging in %
Internal perspective- Reduction in material usage
Learning and growth perspective- EMS implementation
Financial Perspectives- % recycled material used
Social Performance
Economic Performance strategy for sustainability
Cultural and ethnic Performance
Health and Safety Performance
Customer perspective- Code of conduct and ethical guidelines
Internal perspective- Use of child labour
Learning and growth perspective-Social auditing
Financial Perspective- Fare wage scheme
Customer perspective- Increased pride
Internal perspective- Employment to minorities
Learning and growth perspective- No of events arranged
Financial perspective- Cost of culture conscious
initiatives
Learning and growth perspective
- Information transparency Financial perspective
- % of revenue allocated to H &S
ratio Learning and growth
perspectiveEmployee training yearly
Financial PerspectivesReturn on Investment
Issue 5: Action Agenda..
1. Improve the accounting in order to highlight the costsassociated with ICT operations
2 Develop a comprehensive methodology forassessing the impact of ICT solutions on totalassessing the impact of ICT solutions on totallogistical costs.
3 Develop a methodology for evaluating the use ofinvestments in logistics infrastructure
4. Evolve a multi-stakeholders’ perspective
Implications..
• Interpretation of sustainability – Addressing key business issues in logistics
• Role of IT – As an enabler, as a catalyst for reduction of waste and as an integrator reduction of waste and as an integrator
• Engage and partner with stakeholders
• Make connections & integrate sustainability within and across our business
• Huge challenge – policy integration and intergenerational equity
Challenges..
• Interoperability
• Sharing between Public and Private
• Security issues
• Standardization of protocols • Standardization of protocols
Industry & Academia collaboration isa “must “ for the above.
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Observations..
• Sustainability using ICT offers a challenge : As a change driver, as a stimulus for innovation
• Addressing social issues by creating shared value will lead to self-sustaining ICT solutions that do not depend on private or government subsidies. depend on private or government subsidies.
• A balanced scorecard need to be evolved
• “When a well-knit business applies its vast resources, expertise, and management talent to sustainability problems , it can have a greater impact on social good”…*
• *“The Link Between Competitive Advantage and CSR” Michael E. Porter and Mark R. Kramer, Harvard Business Review, December 2006
Closing remarks..
• We can start now & We must start now !
• Think of sustainability as a strategy and not as an initiative
• Focus on long term picture not just ROI • Focus on long term picture not just ROI
Useful resources
www.tomorrowscompany.com
www.sustainability.com
www.sustainabilityresearch.org (Research Network for Business Sustainability)
• Shukla, A.C., Deshmukh, S.G. and Kanda, A. (2009),” Environmentally Responsive Supply Chains: Learnings from Indian Auto Sector” Journal of Advances in Management Research, Vol. 6, No. 2, pp. 154-171.
• Shukla, A.C., Deshmukh, S.G. and Kanda, A. (2010), “Flexibility and Sustainability of Supply Chains: Are They Together?” Global Journal of Flexible Systems Management, Vol.11, Nos.1 & 2, pp 25-38.
Thank you very much [email protected]