Arcada

Green Office since 2011

Environmental Logistics Period 1, 2018

Robert Henriksson
 Intro
How to learn and be successful in this course

• More sweat – less tears

• Participate in all the lectures and make notes
• Place always questions when needed
• Acquire the material and the literature without delay
• Start reading the material and the literature as soon as you have it
• Start doing your assignments immediately
• Take part in the many discussion during the course
• Be an active member in your group
• Use nights for sleeping and days for studying

arcada.fi
#arcadauas
 Intro
Previous knowledge

To participate in this course you need to have passed the course:

Introduction to logistics

arcada.fi
#arcadauas
 Intro
Competence

The aim of this course is for the student to:

- understand the concept of sustainable business

- be able to foresee and analyse environmental consequences in logistical
decisions made.

arcada.fi
#arcadauas
 Intro
What to learn
At the end of the course the student is expected to:

- understand the concept of sustainable development

- know a few meters that can be used to show the environmental effects of
activities
- know how different flows affect the environmental impact of the flows

arcada.fi
#arcadauas
 Intro
Contents
The concept of sustainable development
Ecological Footprint and Water Footprint
Different flows, especially different parts of the material flow and the impact
on the environment
The packaging and the environment
Eco-labels, life cycle assessments and standards
Waste

arcada.fi
#arcadauas
 Intro
Examination requirements

To pass the course the student should pass the compulsory elements of the course and
receive at least 50 points of the maximum 100 points in the course.
Personal essay: maximum 30 points (at least 15 points required)
Assignment by groups: maximum 70 points (at least 35 points required)

1-49 points equal to fail

50-59 points equal to 1
60-69 points equal to 2
70-79 points equal to 3
80-89 points equal to 4
90-100 points equal to 5

arcada.fi
#arcadauas
 Intro
Possible literature
English:
Grant David, Trautrims Alexander and Wong Cheew, 2015. Sustainable Logistics and Supply Chain
Management. Kogan Page Limited.

McKinnon Alan, Cullinane Sharon, Browne Michel and Whiteing Anthony, 2010. Green logistics - Improving the
environmental sustainability of logistics. Kogan Page Limited.

Swedish:
Björklund Maria, 2012. Hållbara logistiksystem. Studentlitteratur. Lund. ISBN 978-91-44-07195-4.

Jonsson och Mattsson, 2005. Logistik - läran om effektiva materialflöden. Kap 6 delar av kap 3. ISBN 91-44-04182-9

Finnish:
Järvi-Kääräinen Terhen och Ollila Margareetta, 2007. Toimiva pakkaus. ISBN 978-951-8988-41-3

Possible other literature specified during the course

arcada.fi
#arcadauas
 Intro
Internet

Course material on Itslearning PowerPoint material from lectures

Broschure ‘The EU’s approach to waste management’

Joint website of Finland’s environmental administration www.environment.fi

RoHS www.rohsguide.com
REACH www.echa.europa.eu/regulations/reach
www.reachneuvonta.fi/en/
Evira www.evira.fi/en/plants/import-and-export/wooden-packaging-material/ispm-15-standard/

arcada.fi
#arcadauas
 Intro
Lectures
Date time room lecturer theme
30.8.2018 8.30-12.00  A510 Robert Henriksson Introduktion – presentation of the course
6.9.2018 8.30-12.00  A510 Robert Henriksson
13.9.2018 8.30-12.00  A510 Robert Henriksson
20.9.2018 8.30-12.00  A510 Robert Henriksson
27.9.2018 8.30-12.00  B518 Robert Henriksson
4.10.2018 8.30-12.00  D4106 Robert Henriksson
11.10.2018 8.30-12.00  B518 Robert Henriksson Presentation of the group assignments
18.10.2018 8.30-12.00  B518 Robert Henriksson Presentation of the group assignments

• The lectures start punctually 8.30 am – recommended that you arrive 5 minutes before start
• Each lecture approx. 90 minutes, break 20 minutes, lecture approx. 90 minutes
• If necessary, we will have short breaks during the 90 minutes
• The PowerPoint material presented during the lectures, will be available at Itslearning after each lecture
• Make a copy of the material and save it in your own computer

arcada.fi
#arcadauas
 Intro
Lectures - subjects
• Definitions of the core concepts in environmental logistics
• Discussions about fundamental subjects in environmental logistics
• Regulations connected to environmental logistics (EU Directives)
• Implementing environmental activities (assignment for groups)
• Optimal location of facilities
• ECO-labels – marketing of environmental friendly products
• “Do it right the first time” – managing processes environmental friendly
• Waste management – case PALPA
• Risk management - related to social, ethical and environmental issues

arcada.fi
#arcadauas
 Intro
Your group assignment

• Aim - to make the logistics in a supply chain more environmental friendly.

• At the end of this course your group must present a list of suggestions according to the given
instructions.
• You can choose freely your business company in any industry - it can be real or fictive, however,
it has to be a distributor or a retail company.
• There must be a clear causality between each suggestion and the environmental improvement.
• Each suggestion need to be believable and realizable, and in line with the company´s abilities.
• Each suggestion need to be very practical, at a grass rote level, NOT general actions presented
at a high conceptual level.

arcada.fi
#arcadauas
 Intro
Your alternate position in the supply chain

Up-stream Down-stream

Retail
Supplier Supplier Distributor End customer
company

Transport Transport Transport Transport

Your alternate position in the assignment.

A distributor or a retail company within a
named industry and location.

arcada.fi
#arcadauas
 Intro
Your group assignment

• The are six areas where you can present your suggestions:
– Procurement and purchasing
– Incoming and outgoing freight transport (focus on transportation)
– Incoming and outgoing goods (activities in arriving and departing of goods)
– Reverse logistics (focus on customers returns)
– Warehouse
– Sales and Customer service (take note of Delivery Service)

arcada.fi
#arcadauas
 Intro
Instructions for the group assignment
• The assignment will be written only as a PowerPoint presentation
• Use the given templates for your presentation.
• Time for the presentation is limited (number of minutes will be informed later)
• Date of presentation are 11th and 18th of October
• Participation in lectures is strongly recommended since it will help you in
making your assignment – many ideas will be given during the lectures

arcada.fi
#arcadauas
 Intro
Grading of the group assignment
• The quality of each suggestion need to be acceptable
• Your assignment can give you maximum 70 points
• 35 points required as a minimum
• Each accepted suggestion will give 1,2 point
• You need to present 29 accepted suggestions to achieve the minimum points
• The number of suggestions can differ in the areas, however, you need to
present at least 3 suggestions in any area

arcada.fi
#arcadauas
 Intro
Group assignment – Register your group
• Form groups, preferably 2 persons, not more than 3.
• A template is available at Itslearning
• Rename the template all the family names in your group
• Environmental logistics – Virtanen – Korhonen – Järvinen
• Register the names of the persons in your group, write a company
description, inform industry and location and place the file at Itslearning.
• Deadline September 5th, 12.00 noon

arcada.fi
#arcadauas
 Template
Environmental Logistics – group assignment

• First name, last name

• First name, last name

• Company description

• Industry
• Location

arcada.fi
#arcadauas
 Intro
Group assignment – Fill in your suggestions
• During the course fill in suggestions in the lists with your suggestions
• A template is available at Itslearning
• Deadline October 10th, 23.00 pm

arcada.fi
#arcadauas
 Template
Procurement and purchasing
To be reduced/changed/increased How? Environmental impact?

arcada.fi
#arcadauas
 Template
Incoming and outgoing freight transport
To be reduced/changed/increased How? Environmental impact?

arcada.fi
#arcadauas
 Template
Incoming and outgoing goods
To be reduced/changed/increased How? Environmental impact?

arcada.fi
#arcadauas
 Template
Reverse logistics
To be reduced/changed/increased How? Environmental impact?

arcada.fi
#arcadauas
 Template
Warehouse
To be reduced/changed/increased How? Environmental impact?

arcada.fi
#arcadauas
 Template
Sales and Customer service
To be reduced/changed/increased How? Environmental impact?

arcada.fi
#arcadauas
 Intro
Example: Case Toppi Oy - Pivaset Oy
Toppi Oy is a manufacturing company within the plastic industry. At their factory in Espoo they manufacture a wide range of plastic profiles,
tubes, and hoses.
One of their customers Pivaset Oy is located in Leppävirta (360 kilometres from Toppi Oy). In order to minimize transportation cost, Toppi Oy
has established a consignment stock at Pivaset Oy including approx. 600-900 meters uncut fire hoses in K12 wooden drums.
Pivaset Oy reports every week what they have taken from the stock to their production, and Toppi Oy sends an invoice accordingly. A
replenishment to the consignment stock is a always a full loaded truck carrying 24 wooden drums. In reverse logistics, 24 empty drums are
returned to the factory in Espoo.
Advantages: better transparency resulting in good control of the inventory and changes in demand
allows good purchase and production planning and optimal production
full truck loads delivered timely (less fuel consumption and emissions)
less number of transportations
risk of unexpected costs very low

Note! This opportunity was found with a good co-operation between the two companies.

arcada.fi
#arcadauas
 Intro
Warehouse
To be reduced/changed/increased How? Environmental impact
Less number of transports, always full truckloads Establishing a consignment Less fuel consumption in transportations
stock
Less emissions in transportations

arcada.fi
#arcadauas
 Intro
Example: TV-Shop Homeshopping Oy
TV-Shop was one of the most successful Direct Response Marketing (DRM) companies in Northern Europe which became a generic brand in the
industry. The company was later acquired by Guthy-Renker LLC.

In home shopping products are presented in tv commercials. Managing reverse logistics is essential, since the number of returns is often
significant and require a lot of work and unwanted costs.

When analyzing the returns, the company learned that there was four matters that kept the number of returns at a low level. Most importantly, a
prompt delivery – the customer must always receive the product within the time stated in the commercial, or sooner. Secondly, a convenient
tracking system – the customer should always be able to check the status of shipment. Thirdly, good customer service giving advice when
needed. Finally, several options for paying for the product.

Procurement, marketing, and fulfillment were informed about these findings and these four factors got the highest priority in the process. Very
soon the company could recognize an improvement.

Although the main drivers for reducing the number of returns was not in making the process more environmental friendly, the improvement
reduced simultaneously negative environmental impacts – less waste of packaging material and less freight transports resulting in decreased fuel
consumption and emissions. Costs and environmental friendly operation can be interconnected.
Note! This opportunity was found by analysing the returns and learning more about the customer behaviour.

arcada.fi
#arcadauas

Reverse logistics
To be reduced/changed/increased
Less customer returns
Less customer returns
Less customer returns
Less customer returns
arcada.fi
#arcadauas
Intro
How? Environmental impact?
Prompt deliveries Less packaging waste
Less transportations
Less fuel consumption
Less emissions
Tracking system Less packaging waste
Less transportations
Less fuel consumption
Less emissions
Better customer service Less packaging waste
Less transportations
Less fuel consumption
Less emissions
More payment options Less packaging waste
Less transportations
Less fuel consumption
Less emissions
Examples of not acceptable suggestions
To be reduced/changed/increased How? Environmental impact?
Reduce waste in the warehouse Do everything better than Less waste
before
Increase the knowledge Employing only good people Less waste and emissions
Reduce the number of claims Do it right the first time Less waste, lower energy
consumption, less emissions
Change to environmental friendly Implement various Less waste, lower energy
procedures improvements consumption

arcada.fi
#arcadauas
 Intro
Your individual essay 1 (4)
Write a proper description of five of these seven concepts as follows:

• Tripple Bottom Line (TBL)

• Lifecycle Assessment (LCA)
• ISO 14001
• ISO 14031
• ISO 26000
• Eco-Management and Audit Scheme (EMAS)
• Global Reporting Initiatives (GRI)

arcada.fi
#arcadauas
Your individual essay 2 (4)
• Write a proper description about each concept, standard, or system and
for what purpose and for whom it has been created. Present also the pros
and cons of each.
• Your target audience are persons that have no previous knowledge of
these matters. Please write your text accordingly.
• Important! Include to your text the references to the sources that you have
used according to the Arcada writing guide 2014 https://
start.arcada.fi/sites/default/files/dokument/examensarbete/writing_guide_2
014.pdf

arcada.fi
#arcadauas
 Intro
Your individual essay 2 (4)
• As your source, you may use any article, text book, and internet.
• Prepare to write at least a 10-15 page essay.
• Use the template available at Itslearning.
• Deadline 18.10.2018 at 23.00 pm
• Send your essay to Itslearning.

arcada.fi
#arcadauas
 Intro
Grading of the individual essay 4 (4)
• Your essay can give you max. 30 points, each heading max 6 points
• 15 points required as a minimum.
• You have to write a description of each of the five concepts
• You have to present the descriptions in your own writing, no copied texts are
allowed
• Contents, pictures, drawings, structure, readability, and references affects
your points.
• You points and grades will be informed approx. a week after the end of the
course

arcada.fi
#arcadauas