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Sustainability and efficiency;conflicting objectives in Logistics?Some practical insights
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Sustainability and efficiency; conflicting objectives in Logistics?
Some practical insights
John Poppelaars
Antwerp, November 2010ORTEC
P.O. Box 490
2800 AL Gouda
Groningenweg 6k
The Netherlands
Tel. +31 (0)182 540 500
www.ortec.com
My logistic experience of today
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Waste of time, longer and polluting (and more stressful)
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Some ideas for improvement
• Local Traffic Control
• Bundling
• Variable pricing of parking space
• Real time route guidance
Algorithms required!
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Sustainability; the practical way?
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Sustainability
Kilometers
CO2 emissions
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Or is there more to it?
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170 grCO2
150 grCO2 85 gr CO2
170 grCO2
170 grCO2
Source : www.greenbiz.com
Case : Sustainable supply chain design
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Which one is best?
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Cheap, sustainable and slow
Fast, expensive and polluting
How to decide on alternatives?
Some Figures
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Conflict of Interest
Supply chain design
Sales
CustomerOperations
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“Sustainable?
Why bother, we
need the
revenue”
“We have a
Sustainable
image ! (but
want it cheap)”
“You can’t sell
that, it’s
impossible and
will destroy are
carbon footprint”
Let’s have a look at the facts
Scenario’s
Judge
and select
preferred
scenario
Volume
Supply Chain structure
Cost para-meters,
service requirements
Yearly costDifferent
aggregation levels.
For each link
in the SC.
Score on evaluation
criteria
Input Output
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A picture…
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Weg Zee
CO2
Cost
Service
CO2
Cost
Service
Sustainable supply chain design
Air Sea
Efficiency
Su
sta
ina
bili
ty
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2 3
45 6
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Joint decision making
Supply chain
design
Sales
CustomerOperations
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1. Customer retention
2. Increased exit barriers
3. Smarter offering
4. Increased revenues
1. Optimised performance
2. Increased agility
3. Attain sustainability
objectives
1. Cost reduction
2. Agile and sustainable supply
chain design
3. Improved service
capabilities
Modelling & Sustainability
Business analysis
Key performance indicators
Modelling
What-if analysis
Optimisation of integrated supply chain
Innovation
Sustainable & Efficient
Operations!
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About John Poppelaars
Principal Consultant at ORTEC
Board member Dutch OR society
“Improve Decision Making”
http://nl.linkedin.com/in/johnpoppelaars
http://john-poppelaars.blogspot.com
@ORatWork
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