FAROUQ Amine Green Logistics Report

8/3/2019 FAROUQ Amine Green Logistics Report

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GREE

GREE

CARB

BEST

By

UPPLY CH

AN INSTRU

FOR TAC

LIMATE CHFAROUQ Amine

1st Year Logistics

N LOGISTICS

N LOGISTICS vs TRANSPORT S

ONE EMISSIONS IN A SUPPLY

PRACTICES

IN AS

MENT

LING

ANGE

2011

ngineering

STEMS

HAIN


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SOMMAIRE

INTRODUCTION .......................

AIM OF THIS REPORT...............

WHAT IS GREEN LOGISTICS? ..

THE PARADOXES OF GREEN L

CARBON EMISSIONS IN SUPPL

MEANS OF FREIGHT TRANSPOR

LOGISTICS AND ENVIRONMENT

POSSIBLE AREAS FOR IMPROV

CASE STUDY:TECHNOLOGY AN

CONCLUSION: ........................

.....................................................................

.....................................................................

.....................................................................

GISTICS IN TRANSPORT SYSTEMS: .................

CHAIN..........................................................

T IN EUROPE: ................................................

AL BEST PRACTICES .....................................

EMENT...........................................................

D ORGANISATION IN PARIS .............................

.....................................................................

..................... 2

..................... 2

..................... 3

..................... 4

..................... 5

..................... 7

..................... 9

................... 11

................... 13

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INTRODUCTION

Logistics represents an importa

aim is to improve the cost, effici

a supply chain. However, trans

impact leading to high fuel c

movement vibrations and acci

proportions that the sustaina

discussions all over the world.

In this context, the concept of

with Reverse Logistics whicsignificance.

Green logistics is quickly gaini

chain management. Logisticians

issues, and international legislati

all aspects of business.

AIM OF THIS REPORT

This report aims to discuss th

transport industry related Green

in a supply chain, freight bes

practices and technologies that

transport impacts in general.

I will explore how logistics activit

tackled. Analysis of the most

Logistics T

t link in the present transportation systems. The

ncy and reliability aspects along different links in

port movements have a negative environmental

nsumption emissions, increased noise levels,

ent rates that have now reached such high

ility issues have become a real subject of

Green Logistics takes its place in relationship

is a particular aspect and assumes great

ing resonance throughout logistics and supply

are becoming more and more aware of green

ion is being introduced and applied world-wide to

significance of the concept of green logistics,

House Gas (GHG) emissions, carbon emissions

t practices, and finally numerous sustainable

could improve efficiency and reduce negative

ies can improve the way climate change is being

elevant measures to achieve Green Logistics,

ransportSupplyChain

l


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focusing on the essential best p

meet the challenge of reducing

WHAT IS GREEN LOGIS

Green logistics is a form of lo

friendly and often takes into con

functions.

Logistics involves the movem

materials and final consumer of

delivering a product which will

possible cost. A variety of cre

reduce overall costs. In transp

Supply chain management, wa

and safety inspections are all a

Indeed, the words that make

meaning, but combined, they for

Ultimately, Green Logistics can

practices and strategies that re

freight distribution. It focuses

packaging and transport.

Here is a figure that explains

consequences on the environme

actices, to identify the most promising actions to

HG emissions.

ICS?

istics which is supposed to be environmentally

sideration social aspects in addition to economic

nt of products from every step between raw

a finished product. One of the keys of logistics is

satisfy consumers requirements at the lowest

ative measures can be used to cut costs and

ortation we speak about itinerary optimization.

rehousing, retailing, manufacturing, distribution

art of logistics.

p the title of this paper are each loaded with

m a term that is particularly evocative.

be defined as part of Supply chain management

duce the environmental and energy footprint of

on material handling, waste management,

reen Logistics according to Economy and its

nt and society.


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THE PARADOXES OF GREEN LOGISTICS IN TRANSPORT

SYSTEMS:

If we analyse the main characteristics of a logistical system, we can show several

basic paradoxes that are discussed below:

Costs: The purpose of logistics is to reduce costs, notably transport

costs. In addition, economies of time and improvements in service

reliability, including flexibility, are further objectives. Companies that are

involved in the physical distribution of freight are highly supportive of

strategies that enable them to cut transport costs in a competitive

environment. Most of the time environmental costs are externalized. This

means that these costs have to be absorbed by the final consumer (e.g.

environmental tax). Society in general and many individuals in particular,

are becoming hostile to the idea of accepting these costs.

Time / Speed: In logistics, time is very important, we should be reactive.

By reducing the time of flows, the speed of the distribution system is

increased, and consequently, its efficiency. This means that logistical

activities impose increasing air freight and trucking. Flexibility in logistics

& industrial production is mainly represented by two principal concepts:

Door-To-Door (DTD) services, mostly coupled with Just-In-Time (JIT)

strategies. On the other hand, Last-Mile-Logistics (LML) or Urban

Logistics (UL) requires the use of panel vans that cause traffic jams in

cities. In short, the more DTD and JIT strategies are applied, the further

the negative environmental consequences of the traffic it creates.

Reliability: Service reliability is considered as the heart of logistics. This

success is based upon the ability to deliver freight on time with the least

threat of breakage or damage. Logistics providers often achieve these

objectives by utilizing the modes that are perceived as being most

reliable. Unfortunately, the least polluting modes are generally regarded

as being the least reliable in terms of on-time delivery, lack of damage

and safety. Ships and railways have inherited a reputation for poor

customer satisfaction, and the logistics industry is built around air and

truck shipments which are the two most polluting modes of transport.

Warehousing: Logistics is an important factor promoting globalization

and international flows of commerce. Modern logistics systems

economies are based on the reduction of inventories, as the speed and

reliability of deliveries removes the need to store. Consequently, a


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reduction in warehousing demands is one of the advantages of logistics.

This means however, that inventories have been transferred and

integrated in a certain step of transport system, especially the roads.Inventories are actually in transit, contributing still further to congestion

and pollution. The environment and society, not the logistical operators,

are assuming the external costs. Not all sectors are following this trend,

however. In some industrial sectors, computers for example, there is a

growing trend for vertical disintegration of the manufacturing process, in

which extra links are added to the logistical chain. Intermediate plants

where some assembly is undertaken have been added between the

manufacturer and consumer. While facilitating the customizing of the

product for the consumer, it adds an additional external movement of

products in the production line.

CARBON EMISSIONS IN SUPPLY CHAIN

Successful companies have expanded their field of vision to take into account

processes and operations of the companies that they buy from (Suppliers &

subcontractors), and companies that they sell to (Customers). This has allowed

them to adopt a collaborative approach with their partnerships, and to take

efficient decisions about how to run their own operations. Many benefits have

been seen: improved productivity, increased efficiency, reduced waste, lower

capital requirements etc.

Managing the carbon footprint of products across the supply chain is the next

step for business to take in the effort to reduce carbon emissions and mitigate

climate change.

Industry is responsible for 29% of the greenhouse gas emissions, and

transportation for more than 30% of which 8% is from freight transportation.

Supply chains drive nearly 45% of greenhouse gas emissions.

So transport constitutes a significant portion of logistics activity and is

responsible for more GHG emissions than the other activities notably industry, so

it can be an instrument to achieve wider GHG reduction objectives.

GHG emissions across different freight transport modes are presented below:


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The schema below (cf. figure 1)

Carbon is emitted through tran

and production activities.

Here is a schematic representat

proportional carbon footprint as

3% 2%

describes the different steps in carbon emissions

portation, facility lighting, heating, and cooling,

ion of the supply chain of a can of cola, and its

n illustrative case in point.

93%

% 1%

Road

Civil avi

Inland

Railway

Other

Figure 1freight t

Figurcarb

:

ation

avigation

: GHG emissions forransport modes

e 2: Different steps ofns emissions


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The cola example illustrated in t

the contribution that each of the

carbon footprint of the product.

to the manufacturing processes

on all the steps in the supply ch

can of cola.

This approach, often called carb

reasons why emissions are gen

emissions, do not occur in isola

different products or services.

For more details concerning wh

please refer to appendix 1.

MEANS OF FREIGHT TR

European road freight

There are several changes in p

to the fact that this sector is in

reliable for door-to-door services

The European Union has been

freight transport movements bet

market economics. In fact, the

is figure illustrates carbon emissions and shows

steps along the supply chain makes to the total

he total carbon emissions are not just those due

or those due to food miles but should be based

in to produce, use and dispose of or recycle the

on life-cycle analysis, helps us to understand the

rated across the economy. Processes, and their

tion but are always part of the supply chains for

re we can find carbon footprint in a supply chain,

NSPORT IN EUROPE:

transport

licy and regulation regarding road transport due

total progress, and notably for its ability to be

.

hrough a total liberalisation of international road

een different states, based on principles of free

standardisation and harmonisation of regulation

Figure 3: Carbon fooa cane of cola.

l

tprint in


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made it simpler for logistics service providers to participate in international road

solutions.

Technology also helps transport operators limit the amount of pollutants in the

road freight sector through the regulation of engine emissions (Euro standards)

for new goods vehicles. In addition, states have agreed on a maximum weight

(gross weight and axle weight) and vehicle dimensions (length and height) limits1.

European rail freight transport

In order to struggle against the negative environmental impacts that come

principally from the growth of road transport (congestion, accidents and

considerable ground and atmospheric pollution), EU decided to open the rail

freight market to competition).

Even so, where a physical cross-border connection does exist, one of the biggest

infrastructure constraints for international rail flows is the different track gauges in

the construction of the rail system in each country. Where gauges differ, time and

cost are added to the rail cross-border transfer since goods have to be

transferred between rail wagons or the axles on the wagons have to be changed

for onward transport on the other gauge.

Another infrastructure-related issue is that of differing voltages on electrified

lines, which has traditionally required a change of locomotive at border crossingswhere electric locomotives are used. In many cases, diesel locomotives are used

for cross-border services.

So the biggest obstacles to the development of rail freight transport are related to

infrastructure harmony. If European Railway Agency develop and introduce new

standardised technologies and working practices, rail freight could be more

competitive with road.

European waterways freight transport

The freight passing through European ports is increasing constantly. Around 90%

of the European Unions trade with third countries passes through the ports of

Europe, with some 3.2 billion tonnes of freight being loaded and unloaded

annually. The European Unions seaports play a vital part in ensuring the

competitiveness of both its internal and external trade.

1The maximum weight for road trains and articulated vehicles with two- or three-axle

trailers is 40 tonnes. For three-axle motor vehicles with a two- or three-axle semi-trailercarrying a 40 foot ISO container, it is 44 tonnes.


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However, because shipments

European Union are treated in

maritime transport between Meand physical inspections by cust

To rectify this situation, the Eur

European maritime transport a

number of administrative proc

between European ports. The c

the European Union is to set up

sustainable development and

modernisation. The moderni

new customers and make

intermodal solutions for Eur

Ultimately, to meet logistic

of reliability and effectivene

to be very important on diff

that:

LOGISTICS AND ENVIR

The objective of this topic is to

costs arising from negative eco

of goods by sea between the ports of the

the same way as shipments to third countries,

ber States involves many documentary checksoms, health, veterinary, plant health, etc.

pean Commission has introduced the idea of a

rea with a view to eliminating or reducing the

edures that apply to goods shipped by sea

ommon aim of the initiatives already adopted by

a framework enabling European ports to achieve

to obtain the investments they need fo

sation of port facilities should help attrac

a crucial contribution to providing real

pean carriers.

and transportation requirements in term

s, the use of multi-modal transport seems

rent sides. Here is a schema that explains

NMENTAL BEST PRACTICES

provide some basic guidelines to help reduce

omic impact on the environmental, and achieve

Figure 4: Intermodal


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a more sustainable balance between economic, environmental and social

objectives that we talked about before.

Environmental Management Systems (EMS)

We have identified Logistics and transport activities as a major part of the

percentage of impact on the environment. For this reason, logistics and transport

have attracted significant legislation at both national and international level.

Targets for improving environmental performance have been set mainly by the

international community via the Kyoto protocol.

The most well know series of environmental quality certification are ISO 14000

standards.

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.

Monitoring

Once an EMS is set up, it is then formally monitored through an auditing process,

which will identify corrective action that will need to be implemented. This

process should encourage a commitment to continuous improvement in

environmental management as well as ensuring that the organisation will meet its

legal and moral obligations.

Performance Measurement

Organisations with environmental management systems will attempt to monitor

their performance, and simple measures might include:

Miles per gallon of fuel used;

Average life of tyres expressed in miles;

Percentage of tyres remoulded or re-grooved;


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Amount of waste lubrication oil generated by the operation;

Utilisation of vehicle load space expressed as a percentage;

Percentage of miles run by vehicle empty;

Targets for reducing waste packaging.

POSSIBLE AREAS FOR IMPROVEMENT

Areas of intervention for green logistics:

Area Actions within the area

Supply Chain Organisation

Reduce the number of links in the supply chain

Reduce the average length of links

Optimise routes

Despeed supply chains

Information and Communication Technology (ICT)

Reverse logistics/Recycling

Product and packagingrationalisation

Product design

Packaging optimisation

Vehicle utilisation

Use more space-efficient handling systems

Adopt more transport-efficient order cycles

Intercompany collaboration / Co-loading

Fuel efficiency through

driver behaviour

Drive efficiently

Raise standards of vehicle maintenance

Improve fleet management

Technological innovation Fuel efficient engines; aerodynamics; weight; tyres

Modal shift Rail and waterborne

Communication initiatives Training and communication

Compensatory measures Energy efficient buildings


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Further potential meas

In the short term, the contribut

modest, but in the longer term,

of oil increases and truck ma

actions such us optimisation of

better consolidation of consi

associated fuel consumption.

Areas where improvement can o

reduction of water wasta

avoidance of pollution o

areas by using intercept

careful management a

site;

keeping pallet stacks tid

Better management of t

For vehicles, we can consider th

driver training reduces a

monitor fuel consumptio

monitor vehicle utilisatio follow preventative ma

vehicle uses more fuel;

Dispose of used tyre ca

Analysis of the distribution

patterns, as depicted in the

following figure, shows that t

three transport legs are req

to bring the product from the

manufacturer to the shop or

consumer.

Figure 5: Distribution

analysis

ures and ideas

ion made by technological innovations may be

tronger innovations can be expected if the price

ufacturers intensify their R&D activities. Some

tour planning, increase of loading factors and

nments will reduce vehicle kilometres and

ften be made are:

ge by using simple water recycling methods;

f watercourses with run-off from fuel dispensing

or tanks;

d monitoring of other hazardous chemicals on

;

e production, collection and disposal of waste.

e following:

ccidents and improves fuel consumption;

;

in terms of both payload and empty running;intenance programmes as a poorly serviced

ings responsibly.

wo or

ired

the

flow


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CASE STUDY: TECHNOL

Core of the action: The action c

goods and reducing the impac

congestion and pollution.

The actors involved were Chron

Ministry of Transport.

Last-mile urban deliveries of g

from the Vehicles Reception Poi

the decrease of CO2 is due tw

organisation.

OGY AND ORGANISATION IN PARIS

onsisted of organising the last-mile deliveries of

s of urban freight transport in order to reduce

opost (a subsidiary of la Poste) and the French

ods were made by electric vehicles, travelling

int (platform of proximity) to the final destination:

o-thirds to new vehicles and one-third to better

:

Figure 6: Green transportorganisation (same item)


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CONCLUSION:

Industrial processes have beco

products and the incorporation

organisation forms explain the

flow economy, characterised by

cycle that enables more frequen

triggers the specialisation of pro

goal is to adapt offer to dem

increases and stocks are red

responsive, respect delivery tim

e more complex due to changes in demand for

of innovation in products. These new industrial

eath of the stock economy and the birth of the

personalised products with a faster production

renewal of all products. Moreover, this evolution

duction units of large regions of production. The

nd with best production costs, so productivity

ced. Freight flows must be fast, regular and

s and result in lower costs.

l

Figure 7: Green transportorganisation (many items)

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FAROUQ Amine Green Logistics Report