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Towards Sustainable Logistics Development, Thailand-Japan Cooperation and Prospect
Cost reduction and increase of corporate competitiveness through the promotion of green logistics
Contents
2. Green logistics activities and their effectiveness (Introduction of cost reduction cases in Japan)
1. Why environment-conscious green logistics is needed?
3. Global comparison on logistics costs and potential of improvement in Thailand
4. Summary -- Increase in competitiveness through green logistics
September 23, 2008Masaru “Myles” SugataLogistics Efficiency Promotion AdviserAuditor of Ecoaction21Environment CounselorGreen Logistics Partnership Council MemberLecturer in Logistics Policy of Ministry of Land, Infrastructure, and TransportPartners for Logisticｓ RevolutionJETRO Expert 1
2
1. Why Environment-conscious green logistics is needed?(1) Global environmental issues have been serious. (2) Sustainable development and green logistics are necessary.
3
1920年
(1) Global environmental issues have been serious.
IPCC the 4th Evaluation Report November 12, 2007, Spain
A United Nation organization, founded in 1988 More than 2,500 scientists More than 1,000 points observed
An increase of 0.74ºC over 100 years. If no measures are implemented, in 2100, the temperature may increase by +4to 6.4 ºC.
Rise of global average temperature
Eleven years in recent 12 years are the warmest years since 1850.
The temperature rise over 100 years from 1906 to 2005 was 0.74°C. This temperature is higher than 0.6°C reported in TAR. The temperature rise is greater in high-altitude areas in the north hemisphere, and the warming is more significant in the continental area than in sea area.
Source: AR4 SYR SPM
The temperature rise for a decade over the recent 50 years (1956 to 2005) is 0.13°C, which is twice of the rise over the past 100years (1906 to 2005).
Source: AR4 SYR Longer Report Subject1
New !
Average land temperature (Deviation from the average temperature over the period from 1961 to 1990)
Average surface tem
perature(°C)
Yearly averageLine based on the dataError range by 10 years (5-95%)
Liner trendPeriod (Year) Level of rise (°C/10 year)
IPCC’s ChairmanPacha Uri visited Thailand
blog.goo.ne.jp/Source: AR4 WG1 Chapter 3 FAQ 3.1 figure1
Ministry of the Environment
Difference from
the average temperature over the
period from 1961 to 1990 (°C
)
4
www.fotosearch.jp/
Arctic Ice (in Summer)
Endangered species
Half of 1950-1960’sTotal meltdown of Arctic ice by 2030 are predicted.Some scientists forecast the meltdown by 2013.
Example of Impact of Global Warming (1)
The smallest Arctic ice area ever recorded
Approx. 5.3 million square meters in September 2005
425.5 million square meters in September 2007
Source: JAXA website
Ice area equivalent to approx. 2.8 times of the area of Japan is lost.
Atlantic Ocean
Greenland
Canada
Alaska Siberia
Pacific Ocean Japan
Atlantic Ocean
Greenland
Canada
Alaska Siberia
Pacific Ocean Japan
Area of September 22, 2005
Japan with the same scale
5
Tuvalu and Greenland (in Summer)Sea level rise Fast ice meltdown
<Sea level rise forecast result (appendix)>The following processes are not included in the sea level rise forecast result.- Carbon circulation feedback- Ice sheet flow process *
Considering these processes, the sea level rise may increase. Source: AR4 SPM
* The surface of the ice sheet is melt down due to warming, thereby forming lakes. The water of the lakes sinks down the cracks in the glacier and penetrates into the area between the ground surface and ice sheet. As a result, the water functions as lubrication oil, and thus the ice above the ground slides.
Impacts of sea level rise at the equator
(Before flood) (After flood)Flood damage at the Funafuti island in Tuvalu (Photos taken in May, 2005)
If all ice melt, the sea level rises by 7 m.
Source: Website of Japan Center for Climate Change Actions (http://www.jccca.org/)Ministry of the Environment
Arctic Ice sheet meltdown
The water melt and flown from the large Arctic ice sheet covering GreenlandThe sea ice in the Arctic Ocean has been greatly reduced because of the global warming. The reduction area decreased by approx. 10% over 30 years.
Source: ROGER BRAITHWAITE/Still picture
Sudden rise
Sugata entered Ricoh Co., Ltd.
100~120us$
6
Sudden rise in oil priceUS$150? in the end of 2008100 times after
37 yearsFigure 1: Long-term Change of Oil Price
Unit: Dollar/barrel
Price of Arabian Light
Iran-Iraq War broke out in September 9, 1980.
The highest price of $11.65 per barrel during the First Oil Crisis
The Fourth Middle East War broke out in October, 1973.
Iran Provisional Revolutionary Government was establishedon February 11, 1979.
The highest price of $34 per barrel during the Second Oil Crisis The highest price of $32.49
per barrel during the Gulf War.
The price of $67.20 per barrel in April, 2006
Iraq invaded Kuwait on August 2, 1990.
Synchronized terrorist attacks were made in the United States on September 11, 2001.
The allied forces lead by United States attacked Iraq on March 20, 2003.
Stableprices
$1 to $2per barrel
The first structural change Coping to the oil crisis
Stable prices
$13 to 19 per barrel
The second structural changeImbalance between supply and demand
Source: Report created by the Ministry of Economy, Trade and Industry
The prices are based on that of Arabian Light, which Japan purchases most. The price determination method differs depending on the period. Forecasting the commercial use of electric
vehicles in 2030Running cost (fuel consumption): 11 yen/litter
Japan’s Future Technology Development Roadmap
Difficulty of m
anagement
Industrial revolution– 1970 or before
Financial report
Report on environment
Good faith and value
CSRManagement
Triple bottom line
Do corporations contribute to humans and societies? With what do they contribute?
7
Promoting open discussion
(3) Why sustainable development and green logistics is needed?
Background of CSR
High
Low
Society
Environment
Economy
Dam
age to the earth
Encouragem
ent of new
industry
Pollution
Corporate m
isdoing
Social justice
Economy
Environment Society
After 1970 After 1990 Now (and future)
The earth(Ecosystem)SocietyCorporationIndividual
Sustainable development of
corporation and society
Building a sustainable society Long-term roadmapUpgrading logistics
ＣＳＲ
Compared with 1990Now6% reduction of CO2
C-free logistics
Natural energy
60 to 80% reduction of CO2
Hyper green logistics
Energy saving and recycling
20 to 30% reduction of CO2
Green logistics
3R recycling promotion
Pipe-end logistics
Large-volume disposal
Post COP3, around 2020United Nations Framework Convention on Climate Change(Member countries include the U.S. China, India, and other developing nations.)
The basic agreement made in March, 2005EU Environment Ministers Board
COP3 2008 to 2012The Kyoto Protocol enforcedSCM
Green
Around 2050Prevention of earth degradation
Difficult
Feasibility
Basic Law for Promoting the Creation of a Recycling-Oriented Society in 2000Environment Basic Law in 1993Easy
8to 20501980 1990 2000 2010 2020 2030
9
2. Green logistic activities and their effectiveness (Introduction of cost reduction cases in Japan)
(1) What is green logistics(2) Advantages in making logistics to green logistics(3) Four activity levels in the green logistics management(4) Green logistics activities in Thailand -- comments on interviews(5) Green logistics activities – cases in Japan
1) Eco-driving (safety) activities2) Collaborative logistics3) Review of distribution plan and route4) Eco packing (recycling and energy saving)
(1) What is green logistics?JILS Grand design
Collaboration
Companies Consumers
Public administration (Social system)
Design and Production Distribution
Source Management
Generation prevention, reuse, and recycling
Resource-saving logistics
Supply chain
Environmental performance evaluation
Reverse chain
Reverse logistics
Purchase Use
Recycling management
Separationtreatment
5 keywords1. DFE (Environment- conscious design)2. SCM3. 3R Reduce Reuse Recycle4. Reverse Logistics5. Consolidation based
on Partnership
Green Logistics Guide
10
We have a responsibility to carry down the sound global environment to the next generation. To do so, it is essential for logistics to prioritize environmentally sound contribution. We propose “the logistics with sustainable development” in every logistic activity.
(2) Advantages in making logistics to green logistics
11
Green logistics activities
Improvement of competitiveness
Increasing logistics service quality (decreasing damages on goods)
Increasing corporate brand image (supports from consumers)
Customer satisfaction
Eco-friendly (energy saving and CO2 reduction)
Increasing safety (reduction of contaminated waste gases and disasters)
Environment
Realizing cost reduction (increasing fuel efficiency and saving resources)Economy
What I would like to suggestGreen logistic activities -- Competitiveness in cost increases
Increase in competitiveness and performances
12
Real management strategy
Carrying the goods more with less energy and resources
Carrying the goods to the destination with less energy Reducing the distance of travel Converting the transportation mode
(Air-> Truck-> Ship -> Railway)
Improving loading efficiency and capacityIntegrating routes and decreasing empty carsUtilizing empty containers used for land transportationSaving resources and promoting eco-packing
CO2 CostEvaluation criteria
Integrating and reallocating delivery basesDirect shipmentLess-expensive delivery means
Almost equivalent
Increasing logistics efficiency/CD measures
Increasing safety and customer satisfactionNew business creation measuresImproving employees’abilities and corporate image
Environmental
activities
Golden rule for success
≒Coaxial
Energy saving measures
etc.
(3) Four activity levels in the green logistics management
Fulfilling obligation (1)
Spontaneous activities (2)
Spontaneous activities (3)
•International conventions
•Domestic laws
•Environment certificate ISO14001•Green purchasing•Recycling laws guidanceﾞ
Examples of activities of logistic companies
Activities conducted by proposing structural reform to and cooperating with the owners of goods, and activities to create a new businesse.g., Transport demand solution
SCM, 3PL, integration of logistics bases, and recycling business
Spontaneous activates (4)
Level 1
Level 2
Level 3
Level 4
Passive
Basic
Active
Innovative and new business
Activities proactively conducted with owners of goodse.g., Traffic solution
Collaborative transportation, eco packing, logistic quality development, and parts recycling, etc.
Consciousness rising and familiar corporate activities e.g., Driving solutionEnergy-saving safety driving, avoiding idling, reduction of paper waste and electricity, and social contribution
13
Compliancee.g., Single unit solution
(exhaust gases and limiters, etc.)Waste manifest
Potentiality of cost reduction
Acidities with uniqueness and superiority
Basic items: Baseline activities
40-50%
20-30%
10-20%
Cost increase
Legal regulation and guidance
14
Question
Type of corporation (Owner of goods or distribution service provider)
1. Energy saving and ecological (safety) driving
2. Review of distribution plan and route
3. Review and improvement of loading efficiency
4. Promotion of collaboration (Collaborative logistics)5. Round use of return cargo and empty container
6. Promotion of modal shift
7. Review of packing (ecological use and energy saving)
8. Reuse of waste generated from logistic activities
Interviewees (8 companies, August 26-29, 2008)
Company A
Owner of goods Distribution service provider
Company C Company F
Relevant numbers of green check guide
(4) Green logistics in Thailand – Comments on interviewsInterviews: TNSC arrange 8 companies
Conclusion1. The concept of green logistics are understood among all companies.2. Regarding to actual activities, however, some companies have been conducting and some are in the preparation stage. (Progress of activities varies greatly depending on companies.)
Relevant numbers of green check guideRelevant numbers of green check guide
Company B Company D Company E Company G Company H
Owner of goods Distribution service provider
Owner of goods Distribution service provider
Owner of goods Distribution service provider
Establishment of environmental policy
Acquisition of environmental certification (ISO14001 or other certificates)
Introducing examples of activities in Japan
(1) Eco-drive (safety) activities
６２
Advantage of cost reductionFuel efficiency: increasing 10 to 20%Traffic accident: decreasing 20 to 40%
Company R16% increase in fuel efficiency27% decrease in accident
Case 1 (a) Eco-driving operation criteria 1. Start Idling stop campaign (during waiting, loading and unloading goods, and resting).
Introducing a digital tachometer, and setting the maximum idling time by vehicle to reduce the idling time in order (e.g., less than 30 min.) 10-minute idling for a 10-ton truck means a reduction of approx. \22,000 a year.
(3) Green logistics activities – cases in Japan
2. Never idle the engine with high revolution (wasting approx.15-cc fuel per an idling).3. Avoid quick start and acceleration (wasting approx.15% fuel compared to normal driving).4. Clean air cleaner upon monthly maintenance (once or more/month).5. Drive with economical speed (80 km in highway, which is the speed of highest fuel
efficiency), and drive with constant speed.Engine revolution: 1500 during running and less than 2000 is recommended.
6. Avoid abrupt steering and sudden braking (slowly steer and stop)7. Keep higher tire air pressure by 10% (Air pressure decreases by 5% a month)8. Use proper exhaust brake (incl. retarder)9. Before the traffic light, release the accelerator earlier, and coast with engine brake
10. Shorten warm-up time (1 minute in March through November, and 3 minutes in December through February)
15
7. Increase loading efficiency (80% or more by means of route integration or reviewing the number of trucks
(b) Decreasing vehicle weight and setting the targetof loading efficiency, and other criteria
For Driving Control Supervisor
16
Ｒ
1. In summer, do not carry chains for winter on board. (16 kg for a 4-ton vehicle, and 26kg for a 10-ton vehicle)2. Only carry necessary tools on board. 3. Consider whether spare fuel tank is needed. (200 liters, the spare fuel tank is not needed for short or middle distance route.)
4. Use a short-cabin truck . (increasing load, 10-ton truck + 2.2 m3)5. Consider using air suspension truck (10-ton truck + 1.1 m3)/low floor truck, and large tonnage truck.6. Use eco-tires (increasing fuel efficiency by about 3%)
By introducing (a) and (b) realizesVehicle insurance discount by 50% or less
⇒ The discount is expected to be 70%(saving \38,000,000 a year)
All 16 drivers at Tosu (Kyushu) Center of San-ai Logistics Co., Ltd. achieved an average evaluation score of 95 points in July in the ranking of safety driving that utilizes digitaltachograph control. Digital tachograph control is an evaluation in which 16 parameters including maximum and average speeds, idling time, abrupt start and sudden deceleration are scored. Ranks A and B drivers coexisted by 2003 and drivers’ skill varied. After 2004, monthly driver training was made through video and lectures on energy saving. Thank to the efforts to increase safety driving awareness, drivers achieved high scores. We will further address safety and energy-saving driving.
掲示期限：2005年09月16日
NO.499
ふれあい掲示ﾆｭｰｽ
ＲＬＣ 総務部承認:渡辺･作成:淺草
発信元
2005年09月02日
*1 What is digital tachograph?A system that can collect the data of driving conditions such as over-speeding, number of abrupt start and sudden braking, and idling time for each driver, thus enabling to be used for safety and energy-saving driving evaluation.
Monthly driver training has been held. The responsibility of traffic problems are given to the entire company regardless whether they are accidents or misses. Reoccurrence prevention meeting is always held, and causes and measures are discussed by all members.
Energy-saving driving decreases CO2 and increases safety.
17
Digital tachograph evaluates drivers.Safety driving practiced by San-ai Logistics (Kyushu)
Idling time: no longer than 4% (19 minutes in 8 hours)the President Prize in September, 2005
Mr. Ishida, a driver in BCG Logistics Section of Production Logistics Department, was received “Safety Collaborative Patrol Card” from Shizuoka Trucking Association.
Safety Collaborative Patrol is an activity that is conducted by Japan Trucking Association with Japan Long Haul Trucking Association for the purpose of the highway traffic safety. Driving on Tomei Expressway, he was found by the patrol as a driver observing the legal speed and driving safely. Observing the legal speed, all drivers of this company ensure the safety.
Mr. Shuichi Ishida(BＣG Logistics Section of Production Logistics Department) awarded the best driver
掲示期限：2005年08月05日
NO.484
ふれあい掲示ﾆｭｰｽ
ＲＬＣ 総務部承認:渡辺作成:淺草
発信元
2005年07月22日
18
Brake pedal
Suddenly and deeply pressing the brake pedal
19
Employing 240 sets of on-vehicle instrumentsEvaluating 5 parameters (20 points each) Full score: 100 pointsStop, turning right or left, smoothness, steering wheel use, and others
Lightly pressingthe brake pedal
Slowly pressing the brake pedal
Case 2
How to brake (habit)
Accident prevention and eco-driving promotion using a safety recorder
Company NL in 2006
Increasing fuel efficiency by
15.8%
Example of utilizing the braking dispersion chart for braking during driving
(Drivers’ “driving habit”) Results of the analysis of data on 10-ton trucks over 12 months
42,494 kmBraking: 4 points
25,271 kmBraking: 20 points 20
Braking actions depending on the speed
Maximum speed (km/h)
Braking actions depending on the speed
Maximum speed (km/h)
Example of utilizing of stop dispersion chartHabit in stopping 2
Stop: 4 points Stop: 20 points 21
Results of the analysis of data on 10-ton trucks over 12 months
Braking actions depending on the speed
Maximum speed (km/h)
Braking actions depending on the speed
Maximum speed (km/h)
無断複製を禁ず ＨＩプランニング 22
Let’s keep constant speed.Green Management InformationIssued in March, 2005Foundation for Promoting Personal Mobility and Ecology Transportation
Green Management Certificate
When you drive your track with wavy driving speed (repeating acceleration and deceleration) due to insufficient distance from the car ahead
The car ahead
Brake
The car ahead
Short distance between two cars
Sufficient distance
Acceleration Decelera
tion
Wavy driving speed consumes more fuel.Fuel efficiency degrades by 30%.
Constant speed and sufficient distance from the car ahead
Keep sufficient distance between two cars, and drive with constant speed.
Constant-speed car
Yearly fuel efficiency degradationLarge truck: 1 million yenMiddle or small truck: 300 thousand yen
Foundation for Promoting Personal Mobility and Economy Transportation (Explaining the difference of fuel efficiency due to wavy-speed driving)
Acceleration
Case 3
22
Installing a terminal in a vehicle
Example of external installation
Example of internal installation
OnOn--board board equipmentequipment
66 series buttonseries button
DopaDopa antennaantenna
23
Company T Significant cost reduction can be achieved after the introduction of equipment
compared with before.
FuelFuel--efficiency increase efficiency increase by by 20%20%Cost reduction Cost reduction by by 2626,,000 000 yen yen a a month per vehiclemonth per vehicle
Reduction Reduction by by 68%68%Cost reduction by Cost reduction by 1313,,000 000 yen yen a month per vehiclea month per vehicle
Cost reduction Cost reduction by by 1212,,000 000 yen yen a month per vehiclea month per vehicle
Reduction by 74%in 2006 !
Cost advantage
Fuel consumption Insurance cost Maintenance costTransition of fuel consumption (fuel cost) Transition of maintenance cost
(inc. consumables)Transition of optional insurance fee
Fuel
cost
(yen/k
m)
Year
ly ins
uran
ce fe
e (un
it: tho
usan
d yen
)
Disc
ount
rate
(%)
Maint
enan
ce co
st for
1km-
trave
l (yen
)
Fuel
cons
umpti
on (k
m/l)
Before TRU-SAM After TRU-SAM Before TRU-SAM After TRU-SAM Before TRU-SAM After TRU-SAM
Monthly amount of reduction per a vehicle
Monthly amount of reduction per a vehicle
Monthly amount of reduction per a vehicle
Fuel consumption Fuel costInsurance fee
Discount rate
Discount rate
Driving approx. 6,000 km a month
24
Cost advantageCompany T Even monthly lease cost and server usage fee are paid, still 40,000 yen a month per
a vehicle can be achieved.
Driving approx. 6,000 km a month
Full package•On-board terminal +•Fuel and flow meter +•Server usage fee
(dynamic management)
Cost-effectiveness in amount per a vehicle (Yen)
Reduction Reduction ((monthlymonthly)) Monthly lease cost Monthly lease cost ((estimatedestimated)) CostCost--effectiveness in effectiveness in amountamount
Fuel costFuel cost
Vehicle maintenance costVehicle maintenance cost
OptionalOptional insurance feeinsurance fee
TotalTotal reductionreduction amountamount
25
26
Status
Before the consultationAs of December
Status
Before consultation
As of December
Travel distance (per month)
Diesel oil (unit price)
Fuelconsump.
Amount of oil (per month)
Travel distance (per month)
CO2 release amount Metal drum equivalentCO2 reduction
amount
CO2 reduction effect (2.6 kg of CO2 release per one litter of diesel oil)
Estimated fuel cost reduction effect
The effect equivalent to the price reduction to 79.2 is observed.
CO2 reduction effect equivalent to 39,424 metal drums
\2,659,254
\2,045,580 \613,674
Cost of diesel oil (per month)
Reduced cost (per month)
Cost advantageCompany SRConsigned the work of fresh food center of a large supermarketA significant advantage in 3-ton refrigerator car (driving 50 to 100 km a day)An average of 60 vehicles
Fuel-efficiency increase by 23.1%
27
Fully utilizing the social capital related to logistics by means of upgrading social capital and harmonized private logistic facilitiesReducing logistic cost and CO2 release amount through efficient logistics, upgrading logistics facilities that can reduce the environmentalload, and integration and collaboration in delivery
Upgrading the large-scale social capital for logistics including international airports, ports, and highways
Creating logistics facilities by means of 3PL business (integrated activities consisting of delivery, storage, and distribution processing), securitization of real estate, and new approaches
To achieve a goal of measures against global warming in logistics (CO2 reduction) is urgent.
Central Japan International Airport opened in February, 2005
New goal for reduction14 million tons
To reduce inefficiency arisen from the location of logistics facilities and environmental load generated by the longer truck travel distance, integrated and functional approaches that upgrade the social capital for logistics and logistics facilities including international airports, ports, and roads.
Inefficient logistics Forming legal framework for extensive promotion
Logistics with high efficiency and low environmental load
Trucks repeatedly come and go, increasing the travel distance.
Factory or warehouse of
manufacturer A
Factory or warehouse of
manufacturer B
Factory or warehouse of
manufacturer C
Storage shed for sorting goods
Distribution processing
factory
Conventional warehouse
Whole sale or retail
Inefficient dispersed locations
Establishing a system of certification by the Minister of MLIT, and granting the following advantages to the certified operators- Special advantages of laws of logistics and related business- Special advantages in tax- Financial investment and funding- Streamlining location regulation
Integrating a variety types of logistics function
Collaboration with the social capital including international
airports, ports, and roads
(Storage, goods sorting, distribution processing,
and information)
Delivery-efficient logistics facility
Making truck driving more efficient
Promotion of 3PL business
Website of MLIT
A new law for logistics efficiency enforced in October 1, 2005(2) Collaborative logistics
Small and dispersed logistics ⇒ Encouraging to set up large-scale collaborative functional distribution centers
Realizing green logistics and efficient logistics through extensive promotion of 3PL
Whole sale or retail
Whole sale or retail
Factory or warehouse of manufacturer A
Factory or warehouse of
manufacturer B
Factory or warehouse of
manufacturer C
Whole sale or retail
Whole sale or retail
Whole sale or retail
Reducing logistics costsby integration of logistics bases and collaborative delivery (About 20% reduction)
Reducing environmental load in logistics by setting up environment-conscious facilities and improvement in logistics operation (About 20% reduction)
Targeting cost and CO2 reduction by 20%
Comprehensive and efficient distribution operation
Needs to focuses corporate management resources on the core business such as
producing goods
Executing overall logistics business that covers delivery, storage, and
distribution processing (3PL business)
Overall efficiency increase of logistics business that supports international
competitiveness
Comprehensive consignment of
logistics
Reducing environmental load
- For example, CO2 release canbe reduced by approx. 20% through the integration of logistics bases and streamlining
the delivery network.
Functional use of land
- Efficiently utilizing unused land and idled land in industry complexor delivery complex near the interchange
- Creating employment of goods sorting and distribution processing
in facilities of logistics bases
Promoting logistics innovation
- For example, logistics cost can bereduced by 20% through the integration of logistics bases and streamlining the delivery network.
Local revitalization
Locating a large-scale delivery site near the interchangeThis leads to promote collaboration with social capital.
Production site (factory) Consuming site
(retail shop)
Production site (factory)
Consuming site (retail shop)
Creation of local employment
Within 5 km
Website of MLIT 28
Recommending to locate large-scale delivery site near interchange or cargo station
29
Before employing collaborative logistics
After employing collaborative logistics
Realizing collaborative logistics from the viewpoint of total optimization
Planet Logistics Ltd.
Manufacturer A
Wholesale shop a
Conceptual diagram
By each manufacturerComplicated delivery
Large scale and collaborative delivery
Total optimization viewpointCollaborative logistics
High cost Low cost
Before After
Promoting collaborative delivery
Manufacturer B
Manufacturer C
Manufacturer D
Wholesale shop b
Wholesale shop c
Wholesale shop d
Wholesale shop e
Manufacturer A
Manufacturer B
Manufacturer C
Manufacturer D
Wholesale shop a
Wholesale shop b
Wholesale shop c
Wholesale shop d
Wholesale shop e
20 times 9 times
Location of logistics center
Delivery deportation
Delivery area
Location of distribution center
New Port of Ishikari-city, Hokkaido
Case 1 Collaborative delivery
Company P, in Hokkaido
Collaboration within the toiletry and cosmetic industry
Type of vehicle
2-ton truck
4-ton truck
10-ton truck
Total
Delivery by each company
12 14 11 37 trucks
Planet Logistics, Ltd.
6 10 11 27 trucks
Difference 6 4 0 10
Travel distance: 4422 km to 2580 km -42%CO2 release: 2046 kg to 1327 kg -35%
Collaborative delivery: Environmental load, delivery quality, and cost reductionWith advantages (recipients are also benefited)
Collaboration among 12 manufacturers
Verification condition - Data on January 31, 2004 – Integrating into 2-ton, 4-ton, and 10-ton
vehicles – Considering delivery time specification – Excluding 10-ton vehicles running on
street.
Simulation result (day)
30
Company T’s logistics information system Improvement in freight goods demand and truck demand
Case 2
Before improvement Truck with goodsEmpty truck (return)
Nagoya Tokyo350 km (one way)
Nagoya Tokyo350 km (one way) Ｒ
Since trucks are owned by each operator in Thailand, in many cases, trucks run without goods.
The cost reduction will be great if the number of commercial trucks are increased and collaborative loading is made.
Empty truck (return) 36% (64% with goods)Distance empty trucks run 700 km (2 trucks)
31
After improvement: Round trip truck
COCO22--２５９２５９ ｋｇｋｇ
per round tripper round trip
Intensity: 0.37kg-CO2/km (4-ton truck)
After improvement
Although a truck runs some distance without goods, 700 km of empty driving can be avoided.Rate of empty truck is decreased to 10% (cost reduction of 26%)
Nagoya Tokyo
Nagoya TokyoTruck loading goods Empty truckMatching Matching
DataBase
Overall improvement by 11%32
Number of matching in Japan 670 thousand times/year = About 2,600 million yen
33
Demand forecast of goods and stock
management
Order through planned delivery
system
Avoiding order with many times
and small lot
Averaging delivery demand
Reduction of delivery cost
Increase in average delivery volume
2 effects of “planned delivery”
1990
1990 2005
2005Average truck type: 15.0 klLoading rate: 94.3%
Average tanker type: 1,536 klLoading rate: 90.0
Average truck type: 19.47 klLoading rate: 94.2%
Average tanker type: 2,936 klLoading rate: 93.1%
Loading rate for domestic tankers
Loading rate of tank trucks (white oil)
Average load capacity (volume and percentage, 1990-2005)
Considering the sales and tank capacity of a gas station, delivery plan is made with avoiding out-of-stock at a gas station and maintaining delivery capacity. (Efficient logistics in corporation with sales agents)
Case 3
30% increase
91% increase
Petroleum company C
(3) Reviewing delivery plan and route (TMS)
IBM AS/400
ＨＨＣ
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1. Goods owner /Storage site
2. Order reception process
3. RLC host CPU 4. Truck assignment plan process 5. Delivery process
Host CPU
Distant client (PC lent for receiving order)
Others (TEL and FAX)
WWW server
Order reception system
Order reception operator
In-area truck assignment systemSmall lot, medium-weight goods, and parts
Site-to-site truck assignment support systemCharter delivery and mixed loading delivery
Automatic truck assignment plan
system
WWW serverEDI server
Fixed route delivery service operators
Slip
Loading list
Instruction list
Mobile terminal system
Dynamic behavior control system
<On-board equipment>
Satellite antenna On-board terminal
Communication control equipment
Touch panel
6. External network center7. Provisional performance control process
8. Production control process
Satellite antennaPublic phone network
Data server
Performance control systemGoods tracking systemOperation control system
Dedicated server
WWW server
Daily operation report
Workers’attendance control
Invoice
Pre-payment list
Sales/purchase systemEfficient control system
5 warehouses at the headquarters TMS12 production factories 80 sitesPlatform
Case: 1050 vehicles at Company R 80 collection sites10 recycle and 8 reuse sites
Logistics information technology N-TRIS
52 sales companies/shopsTMS Consumer
Delivery technique Delivery technique Service provisionLogistic center technique
Integration and elimination of Integration and elimination of truck assignment locations truck assignment locations ((Main linesMain lines))
Awaji BCA
Sendai
Koriyama
Sapporo
BCGNagoya
Souka
Hiroshima
Tohoku BC
Hanamaki
Gunma
Keihin
YBC
BCN
Okazaki
Hasama
Fukui
FukuokaTosu
Tohoku RichoHasama Richo
Richo Optical
Richo UnitechnoRicho Atsugi
Richo Gotenba
Richo Numazu
Richo Elemex
Major 22 sites -> currently 5 sites -> (2 sites in future)
Richo Instuments
Fukui Richo
Richo Ikeda
Ena
Kansai block Chubu block
Kyushu block
Tohoku block
Kanto block
Improvements1. Flexible logistics X (34%) Schedule combination, round trip, mixed loading …2. Goods within main lines X (43%) Machines, company K, company O, eco-truck, and collection machines…3. Assignment changes and cost revision X (23%) New partner and cost estimate comparison, C/D…
X trip X%
X trip X%
X trip X%X trip X%X trip X%
N= 196 vehicles /day
35
Case 1
Utsunomiya
Example of loading combination and route reviewExample of loading combination and route review
DifficultiesT in Saga Prefecture: Time of loading and unloading is changed because the main
line vehicles and delivery vehicles comes at the same time.
DifficultiesT in Saga Prefecture: Time of loading and unloading is changed because the main
line vehicles and delivery vehicles comes at the same time.
T in Saga PrefectureN in Shizuoka Prefecture
A in Osaka Prefecture
T in Osaka Prefecture
Supply direct delivery
Conventional delivery Conventional delivery After revision After revision
Logistics of Company O
Regular main line
T in Saga PrefectureN in Shizuoka Prefecture
A in Osaka Prefecture
T in Osaka Prefecture
Supply direct delivery
Result of revision: 18 million yen/year
Check points•R and O are different companies•Amount of goods for in-bound is less at area Q
Points for improvement•Utilizing return that has empty route in direct delivery•Segmenting the regular main line
36
Combination of logistics for the company among its departments and sections+ logistics for general customers
Combination of logistics for the company among its departments and sections+ logistics for general customers
Promotion of integrationPromotion of integration; ; salessales, , procurementprocurement, , and collectionand collection
Increase in loading efficiencyDisclosing data of 196 vehicles on the main line net of the entire companies, and utilizing this data for sales activities and internal use for the main lines and others.Compared to the conventional manual operations, Loading efficiency increased by 10 to 15%.Cost reduction by approx. 400 to 500 million yen a year
Increase in loading efficiencyDisclosing data of 196 vehicles on the main line net of the entire companies, and utilizing this data for sales activities and internal use for the main lines and others.Compared to the conventional manual operations, Loading efficiency increased by 10 to 15%.Cost reduction by approx. 400 to 500 million yen a year
Development of main line net disclosed in 2004, promoting widespread use Development of main line net disclosed in 2004, promoting widespread use
7：30着 18：00着鳥栖 広島 ＳＬＫ淡路
19:00発 8：00発
8：00着 6：00着鳥栖 福岡 広島 ＳＬＫ淡路
6：30発 ｽﾎﾟｯﾄ 19：00発
7：00着 2：00着 0：30着 20：00着SLK江坂 ＳＬＫ淡路 名古屋 岡崎 ＢＣＧ7：30発 6：30発 2：30発 1：00発 20：30発
18:30着 19：30着 0：00着 3：00着ＳＬＫ江坂 ＳＬＫ淡路 岡崎 沼津19:00発 20：00発 0：30発 3：30発
19：30着 0：00着 4：30着 6：00着草加便 10ｔ 既存 ＳＬＫ淡路 岡崎 ＢＣＧ 井上小山
20：00発 0：30発 5：00発
4:00着 18：00着 16：30着草加便 10ｔ 既存 名古屋 沼津 井上小山
5：00発 18:30発 17：00発
8：30着草加便 4ｔ 既存 岡崎
19：00着 21：00着 1：00着名古屋 岡崎 ＢＣＧ20：00発 21：30発 1：30発
岡崎17：30発
18：00着 19：00着沼津 ＢＣＧ 井上小山
17:00発 18：30発 20：30発
7：00着自車便 10ｔ 既存 福井 沼津
17:00発
6：30着沼津
7：00着 6：00着SLK天満 ＳＬＫ淡路
6:30発
20：30着SLK天満 ＳＬＫ淡路20：00発 21：00発
7：00着ＢＣＧ
7：30着群馬便 10ｔ 新規 沼津 厚木MP
幹線ｺﾝﾄﾛｰﾙＧ
幹線ｺﾝﾄﾛｰﾙＧ
幹線ｺﾝﾄﾛｰﾙＧ
BCG車両
集荷を伴う運行
Main line net diagram XXX trip/day Main line net diagram XXX trip/day
What tripWhat trip? ? What is deliveredWhat is delivered? ? How is the loadingHow is the loading? ? Are there Are there
more capacitymore capacity??
This information cannot be This information cannot be easily obtainedeasily obtained. . This system This system
works wellworks well..
37
OA consumables, small machines, and office equipment Approx. 900thousands items/monthArea master creation by vehicle -> Automatic vehicle assignmentAutomatic weight calculation, loading adjustment, and operating time adjustmentThe following functions are available: Referencing, Issuing lists, control of vehicle assignment pattern, vehicle assignment simulation, and mixed loadingSimultaneous 100 vehicle matching assignment (10 minutes for 1000)
Small-lot (vehicle) delivery support system
Before Current
Commonly distributed sheet (commonly used for collection)
Profitability control by vehicle type, products, destination, and day
Picking list by vehicleDelivery instruction list
Partner link
38
他社 RLCArea A＝No. 1 vehicle excessive loading
Area B ＝No.2 vehicle
Area D = No. 4 vehicle
Amount of goods is small
Area C= No.3 vehicle
Approx. 650vehicles
Case 2
Control daily profit and loss and efficiency by vehicle-dispatch control system
Profit and loss by vehicle
Profit control
Profit and loss control·Sales·Cost·Gross profit
By dayBy vehicleBy depotBy route
Daily total by depot
By each vehicle
Efficiency indicator· The number of visits· Weight· Quantity
39
Efficiency control· The number of visits
· Weight· Loading efficiency
·Based on the analysis of load and customers needs, change and implement operation method flexibly by changing delivery method and switching vehicles, etc.
·Train depot chiefs and dispatchersDelivery efficiency control Ver.2.0
Route deliveryReturn etc.
Productivity improvement in the logistics C(method to increase the number of supply and delivery)
Transport
7 8 9 10 11 12 13 14 15 16 17
Order receipt
Expected order Firm order
Dispatch vehicle Arrange vehicle Dispatch vehicle
Document processing
Delivery slip output and sorting○ ○ ○ List by vehicle sorting ○ ○ ○ ○
Total picking Sort and inspection Wrong delivery check
Workers in warehouse
○ ○
Warehousing receipt to Warehousing processing
List outputDocument processing
Sort Loading
DriverDocument processing
Delivery Lunch Delivery
Objective
11：30 16：30
Time management control and productivity improvement by fully utilizing the all functions in the logistics C
(1) Speed up delivery and dispatch
(3) Set up loading start time · Set up loading platform · Improve efficiency of sorting area ·Improve delivery instruction, etc.
(4) Shorten loading time to less than 30 minutes per vehicle · Change lunch time rule for supporters and increase supporters · Prepare M/H tool
1. Improve and maintain quality for customer service2. Improve delivery efficiency by improving operation in a warehouse XX% or more( increase delivery time XX hour/day or more)
About 2 hours→ less than 1.5 hours
130 minutes 120 minutes
Delivery timewant more
Delivery timewant more
(2) Inventory location improvement
40
(5) Set up driver delivery operation standards
12：00
TransportTransport
Richo ● 1st ● closing ★ Fixed ● Additional closingOS ●TP2 TP3 ● ●TP4 ●TP5 ●TP6 ●TP7 Fixed
Truck assignment fixedDelivery shee Sheet sorting
Unloading Richo Provision List output Total picking LineupOS Provision List output Total picking LineupTanomail 横持 Sorting
Sorting Loading list List outputLoading Loading
Orderreception
Truckassignment
14:0030 30 3010:30 11:00 12:00 13:00
★
★
Time schedule management for whole operation (order reception –arrangement – delivery)
Organization
Ｃ
No.of staff 4 7 8 6 611 8
Ａ
Ｂ
Ｄ
Ｅ
Picking Inspection and sortingLineup
Reallocating workers according to the working volume
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18２Ｔ Priority Light
1st Control No. 233 220 234 212 219 236 215 203 201 202 218 204 232 237 210 205 238 217starting time Vehicle ty pe 2t 1.5t 2t 1t 1t 1t 1t 1t 1t Light truck Light truck Light truck Light truck Light truck Light truck Light truck Light truck Light truck
13：15Area
Mitato-ku
Mitato-ku
Mitato-ku
Mitato-ku
Shinagawa-ku
Mitato-ku
Shinagawa-ku
Shibuya-ku
Shinagawa-ku
Meguro-ku
Meguro-ku
Setagaya-ku
Chuo-ku
Setagaya-ku
Meguro-ku
Setagaya-ku
Setagaya-ku
Meguro-ku
Setagaya-ku
Minato-ku
Shibuya-ku
Shibuya-ku
Ota-ku
Ota-ku
Mitato-ku
Ota-ku
2nd Control No. 228 223 207 209 206 208 235 216 230 214 224 227 225 229starting time Vehicle ty pe 2t 2t 1t 1t 1t 1t 1t 1t 1t Light truck Light truck Light truck Light truck Light truck
13：30Area
Mitato-ku
Mitato-ku
Ota-ku
Ota-ku
Shinagawa-ku
Ota-ku
Ota-ku
Shinagawa-ku
Shibuya-ku
Shinagawa-ku
Meguro-ku
Mitato-ku
Shinagawa-ku
Mitato-ku
Mitato-ku
Mitato-ku
Mitato-ku
3rd Control No. 231 213 226 211 221 222starting time Vehicle ty pe 2t 2t 1t 1t 1t 1t13：45
Area
Mitato-ku
Shinagawa-ku
Mitato-ku
Shinagawa-ku
Mitato-ku
Mitato-ku
Home No.1Ｔ
Setting up the loading platform and departure time by car
45
41Delivery departure complete time
Before improvement After improvement
変更前レイアウト図を貼付
A
F
D
C B
E
Above the half story
Under the half story
変更後レイアウト図を貼付
A
F
D
C B
A rank products : Collect near thecenter pointD rank products : Collect on the heavy-duty-rackImprove stock and work efficiency
Redundant space 1span reduced
·A rank and D rank products mixed
·Plane, inefficient space
POINTS1. Improve inventory location based on the ABC analysis and walking flow. 2. Locations can be set easily by anybody.
3. Make the picking area more compact.
Separate D rank products
Under the half story
E
Allocate A rank products
Space efficiency XX% improved
Improvement of inventory location layout
Center point
EV EV
B rank products C rank products
42
Above the half story
1st pick-up work improvement
Any worker can make pick-up → PAS enabledBefore improvement After improvement
Setting up one location/one item shelf, installing separation boards, indicating the deadline by colorImprovement of productibity by box structure where pick-up is easily made
Before improvementAfter improvement
1st pick-up
L/T minutes reductionMan-hour minutes reduction
No location indicationWork is typically conducted by skilled workers
Several types of goods are placed at one locationWork done by skilled workers
Creating attractive warehouse → Company that goods owners rely on
43
Location indication improvement
→ PAS enabled
Using a table, larger square area, numbering for vehicle, placing goods with the same direction, fast pick-up
Work time can be reduced because time for pick-up can be reduced and the worker does not need to bend down for pick-up.
Before improvement After improvementDue to an increase in pathway and intervals, truck
wheels can pass each other and both-side pick-up can be made.
Before improvement After improvement Before improvement After improvement
Whole
Small item, flat placement
Neat goods arrangement, which makes accessibility to the goods higher
L/T minutes reductionMan-hour minutes reduction
2nd pick-up Goods sorting area work improvement
2nd pick-up to loading
Dispersed into two stacks by goods ownerMany small truck wheel
Only one stackIncreasing the number of large truck wheelReducing the number of delivery
Flat placement, small square area, not neat
44
90
100
110
120
130
140
Ｘ月 ２ヵ月後 ４ヵ月後 ６ヵ月後 ８ヵ月後 １０ヵ月後 １２ヵ月後
Physical distribution LT system ·Inventory control
·Stocking and picking up method, etc.
Supply half-day delivery efficiency enhancement effects
RG RIINGSO/E, etc.
General customer
Ordering·Stocking andpicking upVarious masters, etc.
Information IT system· Ordering system· Restocking system ･
Sales · Purchase · Accountant S
· Data transmit /receipt· Stock control· Stocking and
picking up· Distribution processing
· Inspection, Packing, Loading
Work progresstime management
Indirect operation
(for customer)・Logistics data report
Physical distribution C WMS & Front line operation management system
Delivery TMS system ·Delivery data ·Dispatch
scheduling·Delivery schedule & result report,
etc.
· Direct shipping to all over the country
N + 1 or 2 days
etc.
CSM + Cost management
Quality + Productivity meeting
Hire car · Partner
Owner user
· N-WAIS· VMI· Collection· ARTS, etc.
Vehicle arrangement Delivery information
[%]
[Month]
The number of delivery per vehicle by day
Up Up 31%31% in one yearin one year
45
R company has about 650 vehicles. The number of delivery increased 31%
Reliable and efficient physical distribution C system design
· Profit and loss management, etc.
· Delivery in half-day,
· Receipt or returned for absence goods processing
· Billing, Sales account, Pre-payment
X month After 2months
After 4months
After 6months
After 8months
After 10months
After 12months
(4) Eco-packing (recycling· resource saving)Copy machine Reusing for transportation, delivery and storage (in Japan)
Recycling eco-packing from Jan.2001
Recycling 98%
Eco-packing from 1998
従来型ﾀﾞﾝﾎﾞｰﾙ包装
CO2 emission 53% reduction
Package waste 99% reductionCost reduction 25% less
(including collection, transportation and storage cost)Corrugated cardboard boxes
Foamed material Plastic
Large-volume disposal
Before
46
Reusable 99%
Current
Ex.1
380 million yen a year
What is recyclable eco-packing?
1. Top plate (press molding item)Recycled PP resin
2. Column (extrusion molding item)ABS resin
5. Pallet (injection molding item)PP resin
4. Reception table (injection molding item)ABS, PP resin
3. Pad (blow molding item)HDPE resin
Replacing cardboard with plastics (for repeatable use)
Starting in January, 20016. Bar code decalCompatible film
47Producing frames using recycled material of copier covers
Before improvement After improvement
Example of cardboard resource saving and cost reduction
OA equipment and packing material for toner cartridge for A-type machines
Area proportionBlack: 25% reductionColor: 22% reduction
Increasing fall-down shock resistance by means of turn-up
Locations of pasting
No pasting locations
1. Pasting using glue is not made. Making at a site (pasting locations from 5 points to 0 points)
2. Chamfer area is reduced. (Black: 0.288 ->0.217㎡, Color: 0.243 -> 0.189㎡)
Cost reduction54% 22 million yen a year
48
CO2 reduction40% or more
Case 2
Packing design is important.Effective for cost reduction, logistics improvement (3PL, SCM, etc.)Recommend functional improvement
Stretch film Improvement for resource saving
PreviouslyOnly 18 micron thickness was availableWith paper core type onlyNo standard for the number of turns 6,000 rolls per month were used
About 15%
About 85%
About 28%(12 million yen)Cost down
Before improvement After improvement
Ex.2
49
Pallet for standard shape boxes12 micron thickness Both of with or withoutpaper core type are availableThe number of turns standard 8 times Careful transportation
Pallet for non-standard shape boxes15 micron thickness Both of with or withoutpaper core type are availableThe number of turns case by case, therefore, cannot be fixed
3. Cross-national comparison for logistics cost Potential for improvement in Thailand
(1) Macro physical distribution cost (against GDP)
Comparison between Japan and USA(2) Distribution cost ratio by small classification
per industry Comparison between Thailand and Japan
50
(1) Macro physical distribution cost (Japan)· The total cost was up in 2004 FY, decreased slightly in 2005 FY against
GDP.· Macro physical distribution cost remains at the same level.
The reason of decrease is due to the increased GDP.
51
Source: July 17,2008JILS Research Institute KubotaPhysical distribution cost in Japan
％ 10.59.9 9.8
9.3 9.5 9.3 9.3 9.0 8.8 8.7 8.5 8.4 8.2 8.5 8.4
6.5 6.2 6.36.0
6.3 6.1 6.0 5.8 5.8 5.8 5.6 5.6 5.6 5.85.3
3.5 3.3 3.0 2.9 2.7 2.7 2.8 2.8 2.6 2.5 2.5 2.4 2.3 2.32.7
0.5 0.5 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.3 0.4 0.4
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Total logistics cost Delivery cost Storage cost Management cost
Macro physical distribution cost (USA)· Macro physical distribution cost has substantially increased against GDP. · It is because of the increase in inventory cost by the increased stock amount and the rise in
interest rates.· Moreover, the lack of drivers and increased delivery cost due to the rising cost of fuel have
aggravated the situation.
Council of Supply Chain Management Professionals（CSCMP）「Annual State of Logistics Report」 52
% 10.610.0 9.9 10.1
10.4 10.2 10.2 10.1 9.910.2
9.5
8.8 8.6 8.8
9.5
5.9 5.9 5.9 5.9 6.0 6.0 6.1 6.0 6.0 6.0 6.05.5 5.5 5.6
6.0
4.33.7 3.6 3.7
4.1 3.9 3.8 3.7 3.6 3.8
3.22.9 2.7 2.9
3.1
0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.3 0.3 0.3 0.4
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Total logisticscost
Delivery cost Storage cost Management cost
Decreasing graduallyRecently remaining the same level
53
Figure 1-8 Transition of physical distribution cost of Japan and USA
(above graph: Japan, lower graph: USA
Unit: 100 billion dollar
Note: The graph of USA was made on the basis of the Annual State of Logistics Report by Council of Supply Chain Management Professionals.
Macro physical distribution cost
Japan
2005FY42.1 trillion yen
USA
2005FY1,180 billion dollar
Increasing graduallyRecently increasing rapidly
delivery cost ■ storage cost □ management cost
delivery cost ■ storage cost □ management cost
9.108.99
8.777.29
6.106.01
5.805.635.58
4.574.57
4.363.993.99
3.833.47
2.911.80
1.03
7.39
5.67
2.391.05
12.399.96
4.723.04
1.75
5.84
6.62
3.50
0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0%
●製造業 食品（要冷） ： 7
窯業･土石･ガラス･セメント ： 7紙・パルプ ： 4
繊維 ： 4鉄鋼 ： 3
化粧品 ： 3食品（常温） ： 21
石鹸・洗剤・塗料 ： 4金属製品 ： 6
その他化学工業 ： 12その他製造業 ： 6物流用機器 ： 13
プラスチック・ゴム ： 3出版・印刷 ： 2
輸送用機器 ： 22一般機器 ： 10精密機器 ： 8
電気機器 ： 17医薬品 ： 5
●卸売業 卸売業（繊維衣料品系） ： 2
卸売業（食品飲料系） ： 9卸売業（日用雑貨系） ： 4
その他卸売業 ： 5卸売業（機器系） ： 2
卸売業（総合商社） ： 2●小売業
小売業（通販） ： 3小売業（ｺﾝﾋﾞﾆｴﾝｽｽﾄｱ） ： 2
小売業（生協） ： 2その他小売業 ： 4
小売業（量販店） ： 10小売業（百貨店） ： 2
支払物流費（対専業者支払分他）支払物流費（対子会社支払分）
自家物流費
Physical distribution cost ratio by small classification per industry (2007FY Japan and 2003FY Thailand)
The number of companies
Manufacturing industry
Food (refrigeration)Ceramics, soil and stone, glass, and cement
Paper and pulpTextile
SteelCosmetics
Food (room temperature)Soap, detergent, and paint
Metal productsOther chemical industry
Other manufacturing industryLogistics machines
Plastics and rubberPublishing and printing
Transportation machinesGeneral equipment
Precision instrumentsElectrical devices
Medical goodsWholesale industry
Wholesale (Textile and clothes)Wholesale (Food and drink)
Wholesale (Daily goods)Other wholesale
Wholesale (Machines and instruments)Wholesale (General trading)
Retail industryRetail (Mail-order business)
Retail (Convenience store)Retail (Coop store)
Other retailsRetail (Mass merchandise store)
Retail (Department store)
Micro physical distribution cost in 1991 by Japan JILSSurvey result from 210companies in 2007
Thailand:Food 7.26%
Thailand:Textile 15.61%
ThailandTire 12.84%
Thailand:Furniture 14.76%
The data source of Thai information from TNSC. It is 2003 FY result
54
Thailand:Electric and Electronic 7.52%
Thailand:Leather13.04%
Paid logistics costPaid logistics costIn-house logistics cost
(compared with the cost paid to dedicated service providers and others)(compared with the cost paid to child company)
Logistics cost in Thailand against GDP 24.6 %
1. In developing countries, due to the inefficient physical distribution service, the logistics cost becomes high.2. China has 510 hundreds of logistics companies, of whichtotal spending amount may 19,000 billion RMB , or about 20% of GDP in 2005.
If you set your target at the same level in Japan, the logistics cost will be decreased half, or 5 to 10% against GDP. Yourinternational competitiveness will be enhanced. Strengthenhuman resource development, streamline and sophisticate the physical distribution. Also promote Green logistics.
In general, it is said
55
Improvement potential in Thailand
Source: Ruth Banomyong, PhD
Thammasat University
4. Summary Strengthen the competitiveness by Green logistics
(1) Recommendation to promote Green logistics activities
(2) Activities to support human resource development by TNSC, JETRO, and JILS
(3) Toward for CSR logistics through green logistics
56
(1) Recommendation to promote Green logistics activities
Except the activity level 4 on page13, this is very effective and promising improvement measures, because:
57
1. Huge up-front cost is unnecessary. Feasible by knowledge only.2. The improvement activities can be promoted from the aspect of
leaving the beautiful global environment to the next generation.It is easy to be approved by all members (Teamwork can befostered).
3. Environment load reduction measures such as collaborativelogistics, adoption of commercial vehicles and upsizing vehiclesrealize:
Cost down by approx. 20 to 30 %Environmental load reduction of CO2 by 30 to 40 %
(2) Activity plans of TNSC & JETRO
TNSC and JETRO are now considering projects which support the promotion of Green Logistics in Thailand.
For example:•Promotion Seminars of Green Logistics•Technical assistance and training by JETRO Expert•Green Logistics Contest for Business Company
58
Difficulty of
managem
ent
Industrial revolution– 1970 or before
Financial report
Report on environment
Good faith and value
CSRManagement
Triple bottom line
Do corporations contribute to humans and societies? With what do they contribute?Promoting
open discussion
(3) Why sustainable development and green logistics is needed?
Background of CSR
High
Low
Society
Environment
Economy
Dam
age to the earth
Encouragem
ent of new
industry
Pollution
Corporate m
isdoing
Social justice
Economy
Environment Society
After 1970 After 1990 Now (and future)
The earth(Ecosystem)SocietyCorporationIndividual
Sustainable development of
corporation and society
Complement
Triple bottom line
Green logistics Toward for CSR logistics
Economy
Customersatisfaction
Ecology
21st centurySustainable
society
59
www.fotosearch.jp/
in Thailand and The World
Improve business performance by Green logistics !Leave the beautiful environment for our children!I hope you feel free to use this for your reference.
60
SafetyEnvironmentCSField power
Green logistics Gaia symphony message
Leave the beautiful environment for our children.Make the future of children full of dreams and hopes instead of disappointment and depression.by Jin Tatsumura,
film director
≒ CSR
Safety
Environment
CSMotivation
Reference: Corporation’s Green logistics promotion manual from the aspect of CSRhttp://www.mlit.go.jp/kisha/kisha06/15/150427_.html
All rights reserved for all the contents
If you have any question, contact to the following. [email protected] 080-5674-6541
Innovation & ValueFor CSR Logistics
Logistics innovation
