Part of supply chain management that plans,

implements, and controls the efficient, effective

forward and reverses flow and storage of goods,
services and related information between the
point of origin and the point of consumption in
order to meet customers' requirements
(Council of Supply Chain Management
Professionals/CSCMP, 2020)
 Green Logistics Definition
“Applies environmental principles and seeks to manage the
environmental burden of all stages of traditional logistics
systems—product design, material sourcing, manufacturing
processes, delivery of the final product to the consumers, after
sales, product return, remanufacturing/reuse, and recycling”

Green logistics activities involve the delivery of

materials/parts, the parts/materials inventory, the primary
products inventory, the distribution of primary products, and
the sale of products to customers along the supply chain.
 Green Logistics Objectives

Green logistics aims :

1. At the strategic level, green
• “move and deliver raw materials
logistics objectives are the
and products at the lowest
selection of green logistics
possible cost while maintaining
providers, green transport
the highest standards and
fleets, and green distribution
minimising environmental
strategies.
impact in the process”
2. At the operational level, green
• It implies innovation in all steps
logistics focuses on the issues
of the supply chain, the
of green routing, delivery
conception of product and in
scheduling, and efficient
some cases the final use of
inventory management.
products.
Green Logistics System
Main drivers of Green Logistics
 Environmental Impacts of Transportation & Logistics
• Air Pollutants Carbon Footprint : “Amount
Emission, fuel types of carbon dioxide (CO2)
determine the emissions associated with all
emissions from the activities of a person or
freight transport. other entity (e.g., building,
• Noise Pollution, from corporation, country, etc.). It
aircraft, road traffic, includes direct emissions,
and rail noise. such as those that result
• Energy Consumption, from fossil-fuel combustion
Logistics is regarded in manufacturing, heating,
as a signifi cant and transportation, as well as
If your car consumes 7.5 liter diesel
energy-intense sector emissions required to produce per 100 km, then a drive of 300 km
partly due to the the electricity associated with distance consumes 3 x 7.5 = 22.5 liter
tendency of goods and services diesel, which adds 22.5 x 2.7 kg =
consumed” 60.75 kg CO2 to your personal
globalization. carbon footprint.
Green Transportation & Logistics Practices
 Selecting Greener Transport Modes
Attributes for green transport modes evaluation and selection

“Determined by
product type,
time demands,
accessibility of
transport tools,
and financial
budgets”
Selecting ….. Con’t
Energy use and emissions for typical transport units
of different transport modes
Logistics Environmental Issues & Improvements
• Route Optimization, the aim of route optimization is to reduce the
traveling distance of materials while meeting the delivery
requirements of customers.
• Pollutants Emission Auditing in Route Optimization, In order to
achieve better environmental performance by route
optimization,emissions auditing may be necessary.
• Mitigation of Congestion, Congestion can cause vehicles to deviate
from optimum speed and hence cause a more adverse environmental
impact.
• Greening Logistics Through Green Third-Party Logistics Providers,
Given that environmental concerns in logistics and transportation
have become increasingly more stringent, third-party logistics
providers are required to make greater efforts to reduce the negative
environmental impact of their logistics offerings.
 Distribution strategies and Transportation

Use of alternative fuels Telematic systems to

(e.g. Biodiesel, Liquefied Shipment consolidation minimize travel Intermodal transport
Natural Gas, Electricity) and full vehicle loading distances
 Green Inventory Management

 The determination of lot size (economic order quantity [EOQ] or

economic production quantity [EPQ]) is the basic issue of inventory
management.
 The integration of environmental concerns into the inventory
management system—green inventory management
 Three different ways have been adopted in integrating carbon
emissions into inventory control policies
(1) Carbon emissions are changed into a monetary cost and then the cost is
considered in the objective function.
(2) Carbon emissions are seen as a second objective in a multicriteria
optimization approach.
(3) Carbon emissions are regarded as a constraint within inventory
optimization models.
 Green Packaging
 Packaging includes the packaging that is directly in contact with
products and the packaging that helps the storing, transferring, and
delivery of products.
 The former type of packaging has typically been disposable, and the
latter type of packaging like trays, buckets, containers, and cans
have the potential for reuse and recovery.
 The rapid development of e-commerce has caused packaging
systems to cause large amounts of solid waste. Green packaging can
incorporate the 3R principles (reduce, reuse, and recycle).
 The design of packaging system should consider all aspects of
environmental impact through a life cycle analysis.
 Development of Energy Efficient Warehousing

 Warehousing’s major operational resource–related environmental

burdens come from lighting, heating, and cooling.
 All warehouse buildings need ventilation systems. High air-change
rate is highly related to high energy consumption.
 Some methods of energy saving may include :
1) separating dispatch or intake areas from other areas of activity,
2) opening doors only when necessary (e.g., when vehicles come in and
go out),
3) integrating barriers like close-fi tting door locks in areas frequently
used by forklift trucks,
4) adopting time-controlled thermostats.
 Warehousing and Green Building

Eco-friendly building Water systems (e.g.

design (e.g. eco- Energy-efficient Use of alternative
minimize water waste,
efficient lighting material handling energy sources (e.g.
use of “grey water”
systems, thermal equipment solar panels, wind)
systems)
insulation)
 Green Facility
 The facility location decision primarily involves the optimum
number and location of distribution centers and warehouses.
 Transport effi ciency is highly impacted by the number of
distribution centers.
 Traditional distribution center location problems focus only on a
target of minimizing economic cost (mainly transportation cost
and fixed cost).
 The decision making involved in a facility location from a green
logistics should stress the minimization of environmental impact
from transportation and distribution centers, while improving
customer service level and decreasing fi nancial cost.
Environmental Factors in Facility Location Decisions
 Other Policies on Green Logistics

2.3. Internal
management
Reverse logistics (Waste reduction, Packaging (e.g. Collaboration with
transport and disposal, Materials recycle, management Environmental customers & other
Materials reuse ) (e.g. recycle or reuse) performance bodies
measurement &
monitoring)
Green Logistics – How Can Logistics Companies Be Environmentally Friendly?

1. Eco-friendly packaging material: By using reusable materials that could be returned

after the transport is performed, the company can actually save money. A good
example of this is using strong and sturdy pallets, to ensure a long-term use;
2. Packing items more efficiently: Packing the items in a way that more can fit in a
single box;
3. Giving back to the environment: Many companies engage in eco-campaigns to
balance the impact of their services. For example, planting trees to outweigh the
amount of CO2 produced;
4. Load Optimization – One example of load optimization can be to send a truck only
when it is fully loaded;
5. Route Optimization – Cutting down travel costs, time or distance. By choosing the
best route, is it possible to save fuel and, consequently, reduce the amount of CO2
emissions;
6. Choosing the eco-friendliest transportation method available – Surprisingly, air
freight is the transportation method that causes the most harm to the environment.
Thus, whenever possible, it is important to choose more ecological options, like rail
or road transportation.
 Green Logistics in Practice
Collaboration
Distribution Warehousing
Reverse Packaging Internal with
strategies and and green
logistics management management customers and
transportation building
others

* Carbon report “Go green

Electric/ hybrid
DHL vehicles, al. fuels
* Online Carbon program” with
Dashboard customers

Intermodal (Δ+train
capacity), route Discarded
planning, efficient Hydroelectricity, office Procurement
DB Schenker EcoTransitIT
vehicles, eco-driving, wind energy, equipment based on eco-
Logistics (calculator)
e-freight, solar power (computers, efficiency
consignments fax)
consolidation

Ecofriendly vehicles, * Geodis Mag

Energy-saving
GEODIS multimodal
buildings
* Teaching
transport green practices

Use of alternative Packsize On

UPS fuels (CNG, LNG, Demand ORION (GPS) Assist customers
electric) Packaging
 Green Logistics, useful?
Renewable energy allows a reduction of 450,000 tonnes of
DHL GHG gas emissions and allows a 2.4 % reduction in total
energy consumption in its buildings and facilities.
The introduction of 835 m long trains cuts carbon emissions
DB Schenker
from rail freight transportation by 350 tonnes of CO₂ per
Logistics
annum.
Transportation by train results in 7,031 fewer tonnes of CO2
GEODIS
than were released by trucks on parallel routes.
The replacement of 32 kg pilot flight bags with iPads reduces
fuel consumption by 473,000 litres, reduces CO2 emissions by
UPS 1,200 tonnes, and cuts paper usage by 5.7 million pages per
annum.
 ASSIGNMENTS

Each student:
1. Search the internet for 1 (one) Logistics Service
Provider (LSP) company that has implemented the
concept of Green Transportation or Green Inventory or
Green Warehousing. Explain how the LSP applies!
2. Make a presentation of a maximum of 5 pages.