green initiatives in logistics cii – institute of logistics smart logistics 2015 ease of doing...
TRANSCRIPT
Green Initiatives in Logistics
CII – Institute of Logistics Smart Logistics 2015 Ease of Doing Business
21 Aug 2015, Hotel Grand , N.Delhi By –Pramod Sant , VP –Siemens Ltd
“Green logistics describes all attempts to measure and minimize the ecological impact of logistics activities. This includes all activities of the forward and reverse flows of products, information and services between the point of origin and the point of consumption.“.
What is Green Logistics
Designing Of Products Production Material Purchase Packaging Warehousing Logistics
Green Logistics & its Paradoxes
Dimension Paradox
Cost More pressure on corporate to include greater environmental considerations. Users not ready to accept additional costs
Time /Flexibility Reduction cycle timeUse of most polluting and least energy efficient transport modes.- Airfreight, special vehicles
Reliability On time and with least breakage and damages.The least polluting modes shipping and rail are most unreliable.
Warehousing Reduction in inventory in warehouse Pressure on transport mode and increase in transit inventory.Intermediate warehouse for add on features
Information Technology
E-commerce promises delivery at customer home and in specific time /Hours.Higher usage of polluting modes like air, trucks and special vehicle. Consumes more energy than other distribution.
Environmental Costs Hierarchy
Cost Type Implication Details Control
Internal Material, labor, other expenses which are allocated to product or process
Can be quantified and controlled
Compliance Expenses related with regulatory frame work, such as emission standard ,
Possible to get subsidies, lower taxes
Contingent costs
Potential liability or benefits that depends on the occurrence of events , Risks of accidents, hazardous material release ,
Risk , fine
Image and relationship cost
A firm or a product that is perceived negatively from an environmental point can incur significant cost
Costly Endeavour, can lead to positive impact also
External Cost
Costs that are externalized, Growth often results in higher level of usage of transport infrastructure , more emission of pollutants and higher risk of accidents
Cost assumed by wider economy considered outside firm
Approach to Green Initiatives
Approach Details
A top Down approach
Where Govt. is imposing on the Logistics Industry by Govt. Policies through regulations
A bottom –up approach
Where environmental improvements are coming from Industry itself through adoption of best practices.
A combination of both
Between the Govt. and Industry, through certification scheme
However it is possible that in some industry one or more approaches will be required due to regulation and competition.
Strategies in Green Logistics
Objective Strategy
Shipping Shipp correct quantity, demand responsive system, redcue returns
Sourcing Sourcing close to factory ;location or site .Both for Imports and domestics
Shipping schedule
Allow greater hipping time, outside rush period , Clubbing of air shipments . LCL to FCL .Deliveries on specific daysBetter consolidation of loads to avoid suboptimal use of transport (From LTL to FTL)
Efficient packing Reduce shipment size (volume ) of the same load
Mode of dispatch Use of mode or a route which more energy and environmentally effective .Shift from Air to sea or Air to Air + Sea , express to surface ,Air to surface ,
“Process of planning, implementing and controlling the efficient, 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”
What is Reverse Logistics
Strategic Weapon Competitive Reasons Good Corporate
Citizenship Clean Channel Recapture Value and
Recover Assets Legal Disposal Issues
Balance of risk and Complexities in Green Logistics
structure of the logistics network
vehicle operation
choice of transport mode
vehicle routing and scheduling
vehicle design
configuration of the supply chain
Rail v/s Road Sea v/s Air Express v/s Surface
Countries of supplyPorts used Transshipment points Local situation Political situation
Case study Siemens – Warehouse
Main Topic Masseurs
Site sustainability features
Stacking and protection of top soil onsite and reusing the same for landscaping.Detention basins for storm water channels 90% construction waste of debris reused , avoided land fill
Water Efficiency
Rain water harvesting and sewage treatment plant which will tear 100% onsite water for reuse .Rain water capture harvesting ponds.Treated water is reused for landscaping and toilet flushingLow flow dual flash toilets, sensor based urinals, water efficient fixtures has helped consumption of potable water by 25%
Energy No artificial lighting in day timeHigh roof with special design keeps lower temperature in main warehouse CFL and LED lighting with occupancy monitoring system and shut down Low u value walls and roofUse of energy saving A/C in office area
Case study Siemens – Other initiatives
Main Topic Masseurs
Collaborative Logistics
Use 3 PL service provider for 50% total distribution of Siemens Ltd
Collaborative Delivery
In locations like Thane, Aurangabad, Baroda where multiple factories exist collaborative deliveries
Reusable packing
All healthcare spares original packing is used to collect defective and onward export Turbine Rotors are carried in reusable packing which is returned after delivery . Reusable packing for Low voltage circuit breakers across globe
Transport Design
Dismantling of product after final testing in factory and transport in part dismantle condition – Current Transformers Transformer and accessories – divide between Break bulk and container
Re Manufacturing
Medical equipments like CT, which are factory refurbished and sold .