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Lecture 14 : Green Logistics — Transcript

by NPTEL IIT Kharagpur · 7,159 words · 1,067 segments · language en · Watch on YouTube

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0:01[Music]
0:22[Music]
0:26so hello dear friends welcome back to
0:28npdl online course on Logistics and
0:30Supply Chain management so in the last
0:32course we discussed about reverse
0:34Logistics and what are various aspects
0:37of reverse Logistics why it is important
0:40right and uh we uh identified some key
0:43performance indicators as for the
0:44reverse Logistics is concerned now we'll
0:47start our discussion on Green Logistics
0:50see reverse Logistics is a different
0:52field and Green Logistics sometime what
0:55we are we are confusing reverse
0:56Logistics closed loop supply chain Green
0:59Logistics
1:00and sustainability so these are uh
1:04targeting on different dimensions just
1:06for uh just quick review uh reverse
1:08Logistics will take care uh the
1:11efficiency Effectiveness while moving
1:13the products from the end uh from the
1:15point of consumption to again maybe to
1:18the manufacturing unit or refurbishment
1:20Center or maybe to the raw material
1:22suppliers and if you're talking about uh
1:25Green Logistics will take care of the uh
1:28Environmental aspect in that whatever we
1:31are doing our efficiency uh performance
1:34Effectiveness will be evaluated with
1:35respect to how much we are uh depleting
1:38the environment how we how much we are
1:40supporting the environment so indicators
1:42will be obviously looking towards how
1:45much carbon footprint we are leaving
1:47behind whenever we are doing any
1:48activity either we are manufacturing the
1:51product or we are delivering the product
1:53or we are uh transporting the product
1:55related to that sustainability is the
1:58next version Maybe where we we will talk
2:01about not only environment we'll include
2:03the economic Dimension as well we'll
2:05include the social Dimension as well so
2:08when we'll uh dis uh discuss your
2:11complete Logistics and then supply chain
2:14maybe towards somewhere in the end we'll
2:16talk about the sustainable Supply Chain
2:18management right so uh in this session
2:22we'll try to address these some of the
2:24key aspects we'll try to Define what is
2:27Green Logistics and difference between
2:29Supply chain green supply chain and
2:31Green Logistics right and then we'll see
2:34uh the contribution of Green Logistics
2:36towards the overall sustainable supply
2:38chain we'll see what are the key
2:40challenges for implementing Green
2:42Logistics what are the key Technologies
2:44which can be used to enhance your
2:46environmental performance and when we
2:48are talking about the performance what
2:50are those indicators which will help you
2:52to identify not only your performance
2:54but also will help you to you know set
2:57the Benchmark in that particular
2:58industry how much you are effective and
3:01your competitors or other players are
3:03effective in that industry then we'll go
3:05through quick two or three cases and
3:07we'll talk about the future perspective
3:09also because this is a kind of evolving
3:11field where lot of research is going on
3:14how we can be more sustainable and how
3:16we can be more environment uh
3:18environmental conscious right so
3:19Environmental Management is the broader
3:21picture in that and while managing the
3:23environment we have to be efficient as
3:26well right so as you can see from the
3:29picture
3:30uh when we are talking about uh green
3:33Supply Chain management so the
3:35relationship of natural environment and
3:37supply chain operation we need to
3:39explore right we need to find out where
3:41what are various internal external
3:43factors which will affect your
3:44performance and when we talk about green
3:46supply chain starting with your
3:48suppliers from wherever you uh fuel you
3:51are using you are warehousing that you
3:53are transporting that to some
3:56manufacturer and then maybe you are
3:58finally uh shipping the product to the
4:01end consumer how you are shipping to the
4:03end consumer by electrical Cycles or
4:07Cycles or maybe electrical operator
4:09vehicle you are using using drone you
4:11are uh doing the Doorstep Delivery so
4:15kind of these things right so during
4:17that whole distribution Network how we
4:19can minimize the carbon footprint is the
4:21uh major focus of this particular
4:23session on Green Logistics so talking
4:27about Green supply chain all the
4:29function if we'll say so first thing is
4:32we need to focus on green raw material
4:34this is the first step let's say again
4:36if we are talking about that uh your
4:39electrical Vehicles will reduce the
4:41pollution right but then you need to
4:44take care of from where that raw
4:45material is coming the electrical supply
4:47if electrical supply is coming from a by
4:50burning coal so then it is equally
4:52affecting the environment right so then
4:54you need to find out the sources of that
4:57energy from where that energy is coming
4:59either coming from renewable resources
5:01which have the minimum impact right so
5:04that so that means the first very
5:06stakeholder of this green supply chain
5:08will be your raw material suppliers then
5:10when in your manufacturing unit in your
5:13R&D unit when you are designing the
5:16product you should design product in
5:18such a way that it should have minimum
5:20impact designing means uh you should
5:22ensure that easily you can repair that
5:25or maybe you can uh implement the
5:27concept of three hours you can reduce
5:30that how you can easily recycle that how
5:32you can ensure the remanufacturing of
5:35that product that will help you you know
5:37your green design will help you to
5:40address these three Rs right then green
5:42purchasing as I told you at this point
5:44if your raw material suppliers are also
5:46focusing on providing you the green
5:49supplies right the uh the whatever fuel
5:52if you if you using one very basic
5:54example is fuel how you can use the
5:56alternative uh fuels where you can
5:59minimize is the carbon footprint we'll
6:00see if you'll use electricity how much
6:03carbon you will be generating and then
6:05if you are using petrol diesel so how
6:08you can calculate that carbon footprint
6:10and then you can obviously evaluate the
6:12alternative fuel options and we'll go
6:14for then the green
6:16production how you are converting your
6:19raw material into finished one that is
6:21production raw material you are
6:22converting into finished one so when you
6:24are doing this transformation process
6:26how you are taking care of your uh you
6:29know manufacturing facility within that
6:32how you are using the renewable sources
6:34of energy and again in manufacturing if
6:37it's not only uh and if you are you know
6:40eliminating the wastes in the
6:43manufacturing unit even then you can you
6:45know add something into efficiency you
6:48will minimize the uses of components and
6:50then uh you can increase the life of the
6:53product if it is quality product you are
6:55ensuring quality in the production so
6:57then also you are ultimately adding to
6:59the green Supply Chain management
7:01practices if you are producing more
7:03defects when you are producing that
7:05product that is also question because
7:07you are using more resources than
7:09actually required for manufacturing that
7:11product right then green warehousing in
7:14the warehousing how you are using
7:15automation kind of thing how you can use
7:18the solar energy to you know Supply
7:20power to your Warehouse So within that
7:22warehouse whatever operation Material
7:25Handling you are doing how you can use
7:27that in more efficient way so that so at
7:31this point of time we can understand
7:32anything if you are doing is a kind of
7:34wastage right so that is your uh big
7:38challenge for green supply chain or
7:40green distribution then green
7:42distribution how we can ensure the end
7:44distribution using maybe electrical
7:47Vehicles using maybe Cycles using maybe
7:50drones so those all those things you can
7:52ensure right and in the end uh how much
7:56share is by Road your transportation by
7:59ship
8:00by air by train and then you know that
8:03when you are doing this so um how much
8:07carbon footprint you are leaving behind
8:09so usually if we'll say environment
8:11conscious we are so maybe using ship we
8:13can be more efficient and if you are
8:15using drones so then also you can be
8:17more efficient in that way when you are
8:19uh you know doing all those Logistics or
8:21distribution
8:22activities so quickly Green
8:25Transportation will see high emission of
8:28CO2 gases and uh because earlier we were
8:31not uh so much concerned about this then
8:34debate started and we we have seen that
8:37this is increase to 71% in 2016 and
8:40still it is increasing increasing and we
8:42are saying that it will be 50% more than
8:45and then we are talking about climate
8:47change so many uh debates are going on
8:49on that right and then we are finding
8:51that Transportation a big reason why uh
8:55this uh greenhous gases emissions or
8:57maybe climate change is happening and
8:59then you have seen in Delhi because uh
9:02usually uh during Winters it is
9:04happening uh you cannot breathe even
9:06easily right so situation is so worst so
9:09then the Delhi government is sometime
9:10coming with old even formula when you
9:12are uh how you can use your you know
9:15Transportation Vehicles so in that way
9:17you can limit so many other restrictions
9:19are also there you cannot use uh some
9:22type of uh diesel engines bs4 or those
9:25kind of Technologies are you know
9:26limited if you are using in those trucks
9:29if you're truck is more than 15 years
9:30old even then you cannot enter in that
9:33area right so these all things started
9:35we started discussion on that we started
9:37implementing on that and transportation
9:39is because the I told about this 60% is
9:43approximately the share in when we are
9:45delivering the products by road so that
9:48is a huge huge source of pollution and
9:52uh these carbon footprint right green
9:55procurement and Logistics uh how we can
9:58ensure purchasing of products and
9:59services those are harmful uh those are
10:02less harmful if we are using harmful
10:05products right as raw material then if
10:08you are talking about a green design in
10:10the product even then that is equally
10:12harmful right so uh it should start from
10:15your procurement of your raw material
10:17right so that you need to ensure at the
10:19with your suppliers so you need to tie
10:22up with your suppliers if you want to
10:24implement throughout your supply chain
10:26then green
10:28Warehouse uh
10:29how if see in the warehouse if you are
10:32keeping uh more inventory that is also
10:35kind of VES let's say take very small
10:39example in your house you are
10:40maintaining sometime perishable items in
10:42your refrigerator so if you are
10:44maintaining 10 items in your
10:46refrigerator or 20 items so obviously
10:48refrigerator energy consumption will be
10:50double or not exactly double then will
10:53be higher right so that means if you are
10:55talking about Cold Storage always you
10:57are keeping much higher inventory so
11:00inventory why inventory you are keeping
11:02because you are not sure about the
11:03demand so why you are not sure about the
11:05demand because you did not do that
11:07Predictive Analytics you did not
11:08forecast properly you are not aware
11:10about the customer buying pattern
11:11behavior and that's why you are keeping
11:14the inventory so that you can meet
11:15unexpected demand but this this meeting
11:19this unexpected demand then you are uh
11:22then you are not green uh distributor
11:24you are not green supply chain you are
11:25not doing that right so that we need to
11:28and even if you are doing uh uh stocking
11:32uh extra inventory so then you can
11:34damage that inventory not only damage
11:36sometime in the warehouse only it will
11:38be uh outdated so that means that is
11:41wastage so that again wastage is adding
11:43to your carbon fruit print so then Green
11:46Design uh your product design should be
11:50uh eco-friendly and uh how you can
11:53ensure that at the end of even when you
11:56are manufacturing the byproducts you are
11:58producing during that should be minimum
12:01right this will happen when you are
12:03ensuring in the green manufacturing as
12:05well as in the Green Design so when I'm
12:07converting my raw material into finished
12:09one how much byproducts we are producing
12:11right those are going in the environment
12:13so that is Big Challenge right and uh uh
12:17if you talk about uh the design of the
12:19product how we can uh design such
12:21product which can be easily repaired we
12:24where we can extend the life of the
12:26product by just replacing small small
12:28components right and uh even if it is we
12:32can use Alternate Source if you are
12:34using let's say in uh AC also uh now
12:37AC's are coming with inverter technology
12:39the simple meaning is inverter
12:41technology means more energy efficient
12:43instead of copper winding you are using
12:45aluminium winding you are using copper
12:47winding and all that so just you need to
12:49change the raw materials and then you
12:52will be more efficient in that way okay
12:55so this you can ensure during green
12:57manufacturing green Mar marketing so
13:00this you have to ensure during your
13:02campaign so how whatever expectations or
13:07preferences you are recording from the
13:09customer and and while you are meeting
13:11those preferences and expectations you
13:13should be uh environment friendly right
13:16so you need to design your product uh to
13:19Mar uh to you know meet those customer
13:21requirements in that way so the
13:23definition of Green Logistics should be
13:26more eco-friendly and uh refer to the
13:29practice of managing the flow of goods
13:31and resources in a manner that minimizes
13:34the environmental impact right so uh
13:37till now we discussed that it is not
13:39only that you can minimize by you know
13:43using alternate fuel right the fuel you
13:46will use which is you know producing
13:48less carbon footprint or less CO2
13:51emissions right but we have seen that if
13:54you are doing something uh right at the
13:58very first time so that means that is
14:00also you are avoiding producing the
14:03extra waste right and even if you are
14:05producing quality products then your
14:08life of the product will be extended and
14:10then uh that minimum services are
14:12required and change over is required or
14:14replacing the component is required so
14:16all those activities are adding extra
14:19pressure burden on using extra resources
14:22and in terms of that challenging your uh
14:25these uh green logistic steps so when we
14:28are talking about Green Logistics
14:30obviously basically we discussed about
14:32uh Logistics three major function under
14:35transportation under warehousing under
14:37distribution right under transportation
14:40which mode of transportation you should
14:41use that is more sustainable like ship
14:44using drone right and then warehousing
14:47how you can design a green Warehouse
14:50where you can ensure the uh minimum
14:52inventory where you can ensure the
14:54minimum handling minimum rejection
14:56minimum obsolete of the uh L lots and
14:59then out expiry of the lot and then uh
15:03uh how you are using the what type of
15:05resources you are using to supply the
15:07energy to your warehouse and during
15:09distribution when you are ensuring the
15:11last mild delivery how you can be more
15:14efficient by planning your routs and
15:16then maybe the last mile delivery you
15:18can do by using electrical vehicles or
15:21maybe uh your uh using Cycles right so
15:26Green Logistics encompasses various
15:29activities alternative fuels already
15:31talked about optimizing Transportation
15:33routes this also I if you are somehow if
15:36you can shorten your route uh maybe by
15:3810 km so that much you know uh energy
15:41you can save so energy efficient
15:44vehicles how you can ensure if it is
15:47very old will consume more uh fuel right
15:50reduce packaging this we have seen many
15:53times inside a small item they are
15:55putting two three one plastic packaging
15:58is there then when main cartoon
16:00packaging is there then outer cartoon
16:02packaging is there when and then in the
16:04end Amazon is packaging in uh its own
16:07packet right or maybe flip cart or manra
16:09whosoever is your that e-commerce uh
16:11player right so they are also putting
16:13their uh labeling kind of thing in terms
16:16of packet so that is increasing the
16:18weight increasing the size and again uh
16:23consuming more resources from uh
16:25consumption uh to deliver it to the
16:27consumption point right so that also we
16:29need to take care so this you can see
16:33why we are now moving towards this
16:35because we are talking about climate
16:37change we are now forced by the
16:39governments and governments are
16:40realizing that now this is forcefully
16:42they have done that even OD you have to
16:45do that right you have to follow that
16:47they are campaing about pulling your
16:49vehicle so that instead of traveling one
16:51person in one car maybe four can travel
16:54in one car right so this is how we can
16:55share the resources so uh because
16:59already we uh realize that this is the
17:01time that we need to be more conscious
17:03about the environment so these all steps
17:06we have to take so here I have included
17:08some uh video links you guys can just
17:11quickly go through these videos show you
17:13how this uh uh Green Transportation will
17:17help you to reduce the carbon footprint
17:19and then we'll uh continue our uh
17:22discussion on the topic so you you you
17:24can see in this video that how uh you
17:27know if you are saving the space within
17:29the vehicle even then you can be more
17:31efficient instead of carrying uh maybe
17:33if the vehicle carrying capacity is 10
17:35ton and you are carrying only somewhere
17:37around 6 ton or 7 ton so that 3 ton
17:40capacity is unutilized even in the
17:42packaging the product size is like this
17:45but if you pack uh when you'll do the
17:47packaging you'll put one box for this so
17:50that is also carrying extra space extra
17:52size and and obviously the packaging
17:54cost is also there right so uh in that
17:57way this is one uh only one particular
18:00area I have highlighted through this
18:01video you have seen that how we can
18:03minimize uh you know uh the space and
18:07then the vehicle can be utilized fully
18:09if same will Implement in the warehouse
18:11same will Implement in the distribution
18:14Network so then if packaging you have
18:16designed intelligently which is taking
18:19the minimum space so throughout that
18:21supply chain distribution Network it
18:22will affect your uh performance right so
18:26uh quickly we'll go through uh we'll try
18:29to differentiate uh although your Green
18:32Logistics is very much part of green
18:34supply chain but for the timing because
18:36we are discussing Green Logistics we'll
18:38see how it is different from the green
18:40supply chain as we know Green supply
18:42chain the entire process from your raw
18:44material suppliers to the End customer
18:47including your manufacturers including
18:50your all the retail distribution chain
18:52and all those players are there right so
18:55when you are talking about Green supply
18:57chain so you need to include all those
18:59stakeholders we need to make them more
19:01efficient we need to ensure the minimum
19:03wastage we need to make ensure the um uh
19:07energy uh points we should use those
19:10energies uh sources energy sources which
19:13are renewable in nature right and if we
19:15are talking about Green Logistics
19:17obviously we'll talk about
19:18Transportation distribution warehousing
19:20how we can ensure the Green Logistics
19:23during that so Focus will be complete
19:26starting with your designing of the
19:28product designing of the manufacturing
19:30process designing of the raw material
19:32what type of you know in particular
19:34component what type of raw material you
19:37should use you should use steel iron
19:39alloy anything which is reducing your
19:41cost right again you can take the
19:43example of AC like I told you aluminium
19:45winding or copper winding and then you
19:47are saying that this is inverter AC and
19:49then it is three star five star so that
19:52means five star is more uh energy
19:54efficient right so that way will help
19:56you to reduce the carbon footprint so
19:58here our Focus will be reducing the
20:00carbon Footprints energy consumptions
20:03and environmental impact during your
20:05three things uh in logistics
20:07Transportation distribution warehousing
20:10so activities are sustainable sourcing
20:13energy efficient manufacturing waste
20:15reduction recycling initiatives and
20:18environmental uh friendly packaging
20:21right so these this is complete green
20:23solution for your uh uh broader
20:26perspective of supply chain right but in
20:28case of Green Logistics the activities
20:30will be routs to minimize fuel
20:32consumption so if you can take some
20:34alternate route or through your uh you
20:37know vehicle uh routing system or there
20:39are transportation management system
20:41softwares which will uh ensure the
20:44minimum uh uh distance you should travel
20:47and considering the road condition
20:48considering the traffic like how GPS is
20:51very simple example how giving different
20:53options to you but I'm then again the
20:56the sometimes situation can be different
20:58let let's say if you are having more
21:00than 500 dust beans in in any City and
21:02you have to collect the waste so then
21:04how you should design the route in such
21:06a way every day you are not touching all
21:08those 500 uh desins right so maybe in
21:12some highly populated or maybe in the
21:15city or where shops are there or maybe
21:18industry wte is coming more there you
21:21are maybe traveling frequently maybe
21:23twice in a day or Thrice in a day so
21:25then you need to ensure first wherever
21:28you are visiting your dust bin should be
21:30near to full right even if you are pick
21:33if you're picking half full uh dust bin
21:35so that means that efficiency is gone
21:37you have taken all the way to you know
21:40uh take that dust bin and then it is not
21:43completely filled so then you need to
21:45ensure that how frequently you need to
21:47this is under rooting then you need to
21:49ensure that today I'm going to pick
21:51these 150 dust me so what should be the
21:54root so that I can minimize the distance
21:56in that way and I can address all the
21:58points so that is one thing and during
22:00when you will ensure uh minimum distance
22:03you are covering maximum location you
22:05are addressing low emission because you
22:07are using less uh Fuel and then you need
22:10to think about alternative fuels what
22:12can be those alternative fuels efficient
22:14warehouse management even if you are
22:16fully utilizing the capacity of your
22:18Warehouse even then you are green in
22:21that way so sustainable packaging
22:23recyclable packaging we'll see one or
22:25two cases I have included in the end so
22:28how they are are ensuring this
22:29sustainable packaging objective is to
22:32minimize the environmental impact
22:34throughout your supply chain but here we
22:36need to reduce the greenhouse gas
22:38emission energy uses and resource
22:40consumption in your three areas majorly
22:43Transportation distribution warehousing
22:46because we are discussing Green
22:47Logistics so you can see this is
22:50complete cycle of supply chain you are
22:52getting the raw material supply you are
22:54doing production you are doing
22:56Transportation distribution final con is
22:58happening how after the use you can
23:01again go for recycling so we discussed
23:04in the last uh session about the reverse
23:07supply chain so here you can see if you
23:09want to uh develop your supply chain as
23:12green supply chain or your distribution
23:14Network as green uh distribution Network
23:16so recycling is important right so these
23:20all are related items one is helping
23:22other but we cannot replace completely
23:25with the reverse Logistics is different
23:27as I discussed uh then your Green
23:29Logistics is different and then your
23:31sustainable Logistics is different so
23:33Green Logistics focusing on your
23:35transportation and distribution
23:37activities in a more sustainable and
23:39eco-friendly way so what are the quick
23:41key challenges for implementing this
23:44because raw material cost is increasing
23:45day by day and then you are pushing your
23:48suppliers that now you have to be uh
23:50ensure you have to ensure that your uh
23:53raw material is greener so how you can
23:56overnight can change the
23:59uh the raw material uh whatever you are
24:01using the grade or grading whatever you
24:02are using right so that is one big
24:05challenge because it's not uh if you are
24:08taking the initiative that should be
24:10within uh your manufacturing unit so we
24:13discussed that this is complete chain
24:15and every stakeholder is equally
24:18important for addressing all these
24:20points you need to ensure the profit
24:22people surrounding you and then Planet
24:25as well right so then covid-19 because
24:28again in terms of sourcing raw material
24:30was big challenge during those time
24:32because the shutdown was there and then
24:35uh uh again uh manpow shortage was there
24:38so during that time the prices were hied
24:42so the reasons were obvious because the
24:44manufacturing units were also facing
24:46problem in meeting all those Demand
24:48right after just the recovery of that
24:50period so that is one another challenge
24:52and these kind of disruptions are
24:54happening every day right so uh again
24:57the big challeng is how we can transform
25:00the existing system into now we are
25:02saying the green management system right
25:05so uh because we took uh decade to
25:08stabilize to standardize the process and
25:10now we are because government is forcing
25:13us or maybe our customers are having
25:16those expectations so how all of sudden
25:19we can go for that right and how we can
25:22make that our big system has complete
25:24obsolete because now we are moving
25:26towards uh green kind of uh Network
25:29right so that is again Big Challenge and
25:32uh if you'll talk about technological
25:34advancements so simply you need to
25:36upgrade your technology let's say very
25:38simple example I told you about whether
25:41your Dustbin is full or not only then
25:43you'll go to that location and we'll
25:45pick that dust wi how you can ensure
25:47that in your uh office that today that
25:50dust wiin is fill if we have some
25:52sensors employed there we can easily
25:54find out what is the level of dust Min
25:56right or how we can go for optimization
25:59of the root if we have those softwares
26:02we can easily find out what is the
26:04optimization route how we can ensure
26:06this you you need to combine operation
26:09research Concepts where we can go for
26:11optimization right we find the solutions
26:14we'll go for uh you know iterative
26:16approach and we'll find the best optimal
26:18solution which will ensure the minimum
26:20uses of the resources right so that that
26:24way you can be more Greener and it's not
26:26one day thing but it will take time
26:30green transport uh Technologies uh green
26:33vehicle routing already we talked about
26:35and if we ensure that you will reduce
26:38greenhouse gas emission air pollution
26:40noise and space space Also in the video
26:42we have seen that how you can utilize
26:44the space instead of transporting 10
26:46items now you can transport somewhere
26:48maybe 14 16 items right logistic
26:51solution for carbon neutrality so how
26:54you can ensure that uh the last mile
26:57delivery I talked about by using Electro
27:00electrical vehicles or maybe using
27:01Cycles how you can ensure minimum carbon
27:05footprint by Green packaging green
27:07warehousing and even if it is a
27:09recyclable how you can ensure that your
27:11customer is aware enough or you have
27:14motivated your customer enough that he
27:16is ready to deposit all the packaging
27:19related material back to your supply
27:20chain or distribution Network right
27:23horizontal collaboration is important
27:25regarding to pooling of resources if
27:27let's say swiggy is coming with the I
27:30told you the very USP of swiggy is that
27:33even one piece of sweet they are
27:34transporting right so how they can own
27:37the way they have that much efficient
27:40system then if swiigy person is
27:42transporting the goods from point A to
27:44point B and covering maybe 15 km in
27:47between how it is it can be efficient
27:50that on the way can combine the orders
27:52from Jato from combine the order from
27:54Domino's or maybe combine the orders
27:57from other players right so horizontal
27:59collaboration will also work in the in
28:02that way the delivery cost can be
28:04minimized instead of having individual
28:06delivery network if we can pull the
28:08resources then it will be more
28:10efficient so implementing Green
28:13Logistics we talked about Green
28:14Logistics solution green procurement
28:16packaging and transportation warehousing
28:18we discussed about impact of logistics
28:21agglomeration this will help you to you
28:23know consolidate your uh shipments and
28:25then you can use the economies of scale
28:28and if instead of carrying only 8 ton
28:31you can utilize the maximum capacity of
28:33the vehicle which is 10 ton even if you
28:36are falling short with your inventory
28:38you can combine the inventory from
28:39others carbon management practices you
28:42need to first to manage the carbon you
28:44need to record that and Reporting is
28:47required right so what are the
28:50activities you are doing how much carbon
28:52emission is there so then if you are
28:54recording this properly then you can go
28:56for decarbonization by step by step okay
29:00this much carbon 40% is coming from this
29:03particular area let's say if coming from
29:05Road Transportation right or maybe 30%
29:09is coming from
29:10packaging so how I can address these two
29:14issues in a best possible way that so
29:16that I can address 70% of carbon
29:18footprint and maybe because obviously we
29:21cannot go up to zero but if even if I
29:23can maintain somewhere 30 to 35% let us
29:26go for that right it is step by step so
29:29Road fright Transportation how we can go
29:31for alternative fuels and because this
29:34we talked about because Road uh we are
29:36carrying the maximum share so uh these
29:40are all aspects related to this uh so
29:43let us now quickly explore what are the
29:45key performance indicators when we are
29:46talking about a Green Logistics and we
29:49have some uh different uh consoles
29:52working for that we have uh ISO standard
29:5614,000 series specially related to your
29:58environmental related practices and some
30:02uh United Nations had also developed
30:04some standards related to how you need
30:06to uh take care of your uh Logistics in
30:09more Greener way right so first is
30:12performance assessment in Reverse supply
30:14chain so first we need to ensure that
30:17reverse supply chain should be minimum
30:19means rejection coming from the customer
30:22should be minimum or returns coming from
30:25the customer should be minimum in the
30:27last session we discussed how we can
30:29minimize those returns we can come with
30:31some promotional offers right first
30:33point is we need to minimize that even
30:35if it is coming we need to ensure
30:37recycling refurbishment or disposal
30:40disposal should be your last option
30:42because this is directly directly uh you
30:46know contributing towards carbon
30:47footprint this should be your last
30:50option so Recycling and refurbishment
30:53how we can ensure so first key
30:56performance indicator you can see
30:58percentage of return products that are
31:00successfully recycled so you need to
31:03record that if even today only 30% you
31:07are doing let us make it 50% first let
31:09us go for 70% so that means even if you
31:12are improving 10% so that amount use uge
31:16right and you can reduce the carbon
31:18footprint time taken to process the
31:20return products because also you need to
31:23uh by you know managing one aspect you
31:27cannot not just uh you know go with the
31:30hiking the other one so if you are
31:32ensuring the recycling but time you are
31:35taking so much time taking so much that
31:37means the resources you are consuming
31:38extra so how much cost per unit if you
31:41are again recycling what is the cost it
31:44should it cannot be comparable to the
31:46new product right somewhere it it should
31:49be lesser than that and because it is
31:51going to the secondary Market or maybe
31:55after repair you will find you will
31:57reduce the price so then you have to
31:59take care about that circular Eon
32:01transition how we can make our
32:04distribution Network as circular
32:06distribution so that if anything enters
32:08or resources enters into that Circle
32:11should not leave the circle it should
32:13revolve in the circle only if not in the
32:15same Circle maybe after the end can be
32:18used that as raw material in some other
32:21secondary market so we discussed in the
32:23last session about this as well so you
32:25can see percentage of raw material
32:27sourced from recycled or renewable
32:29sources will help you to ensure the
32:31circular economy and then how much waste
32:35you are generating if you can waste
32:37means something is coming out of this uh
32:40Network as waste that is y product that
32:43is harmful we need to minimize this
32:45waste and then while doing all these
32:47things you need to check the returns as
32:50well whether it is efficient or not so
32:52you need to track environmental
32:54performance with financial performance
32:56is important because these two will lead
32:57lead to
32:58sustainability and uh it will add the
33:01social Dimension as well into that so
33:03this these three are the uh dimensions
33:06of sustainability so correlation
33:08coefficient between environmental
33:10performance either you are reducing
33:11carbon footprint energy consumption but
33:14you need to be financially strong with
33:16your stakeholders so profit is reducing
33:19by implementing those or maybe initial
33:21investment is high but over the time
33:23period maybe you can recover that so
33:25return on investment you need to record
33:28cost benefit analysis also you need to
33:30do if you are going for environment pra
33:33environmental friendly practices so
33:35whether you are raising your cost that
33:37is one concern fuel efficiency if you
33:40are reducing the distance covered
33:43obviously you will be uh consuming less
33:45fuel you will be more efficient so that
33:47also will increase the financial
33:49performance as well right and root
33:51optimization again will increase the
33:53finan so most of the Green Logistics
33:56things steps we are taking that they are
33:58adding to the even your economic
34:00sustainability as well sustainability
34:02practices and waste management how we
34:04are recycling and uh we are ensuring the
34:07conservation of the resources percentage
34:10reduction in the waste per unit of
34:12output how much we are by product
34:13generating we and then recycling rate
34:16what is the recycling rate that means we
34:18have ensured the green design of the
34:20product if you are somewhere you are
34:22recycling 80% to 90% more than that is
34:25obviously blessing for that industry
34:27right right Energy Efficiency ratio how
34:30much energy you are consuming and what
34:31is the output after consuming that
34:34energy overall transportation that
34:36vehicle how much you are utilizing I
34:38told you if your vehicle is carrying
34:40only this much capacity this is
34:42unutilized so that is also a challenge
34:45so how you can ensure that by pulling uh
34:49with your uh maybe uh your competitors
34:52or maybe some other players right if not
34:54competitors so like I mentioned en and
34:58ISO they have some uh standard setup for
35:01measuring the carbon footprint right and
35:03energy consumption so you can calculate
35:06the greenhouse gas and you can compare
35:08that emission of your industry with the
35:10Benchmark or with other industry so
35:12Global Logistics emission control uh Cil
35:15framework is there which is helping us
35:18to provide the measures to calculate
35:20emissions and those emissions uh when
35:23you will calculate you can set the
35:24logistic performance in that way uh your
35:27benchmark and uh then you can help in
35:29reducing those carbon emissions so this
35:32is important how we can calculate the
35:34carbon footprint so sum of emission from
35:36transportation from warehousing from
35:38logistic activity this is total carbon
35:41footprint right so emission Factor we
35:43are multiplying emission factor with
35:45this total whatever we material we are
35:48using so here is one example if you
35:51using electricity whatever value this is
35:53right electricity you are using so for
35:56per unit you you will be applying uh
35:59your emission Factor 85 for your uh if
36:04you're using petrol 2296 2. 653 so you
36:08can see the emission factor is highest
36:11when we are talking about diesel so
36:13that's why using diesel engines uh we we
36:17always focus on how we can uh go for the
36:20alternative fuel so in that way
36:22electrical vehicles are more efficient
36:24because the mission factor is minimum so
36:27this is there is one uh software life
36:29cycle assessment software that also
36:31helps you to calculate you know the uh
36:35how much energy you are
36:38consuming how much environment you are
36:40depleting and what is the cost so this
36:43software will help you to at each stage
36:46if you are manufacturing one bottle
36:48water bottle from raw material to end
36:52consumption and then if you are
36:53recycling or throwing it in the
36:55environment it will help you this life
36:57assessment software will help you to
36:59calculate that harmonization of emission
37:04calculation so you need to harmonize
37:07because different Industries different
37:09standards different calculation
37:10procedures different units will be there
37:12so how you can standardize this and you
37:15can compare the emission data so that we
37:17can compare all the industry performance
37:19with compare with one player with other
37:21player and then we can easily we can
37:24share the data right only if we are
37:27sharing the data only then we can be
37:29more you know in that way transparent
37:31with the customer then customer will be
37:33having the option from where the
37:34customer will pick so that he can decide
37:37right so this is the case study of DHL
37:40where they have initiated the
37:42sustainability practices in 2009 and one
37:45campaign is go green campaign program
37:48where they focus to develop green and
37:51sustainability in their transportation
37:52services and they claim they have
37:54reduced this emission of uh CO2 gas es
37:57and you can see the carbon emission is
38:00reduced by 50% and pollution emission is
38:03reduced by 70% which is huge amount
38:06right so because they start they
38:08initiated this campaign you can go
38:10through this complete case and how they
38:12implemented you can go through right and
38:14they also initiated clean delivery and
38:16pick pickup services and for ensuring
38:19that they used electrical vehicles or
38:21bicycles and they also train their
38:24suppliers who are main stakeholders are
38:26providing the raw material and then they
38:29also included the main stakeholders
38:32customers just under go green campaign
38:35so that they they they ensure the
38:37complete you know uh collection of the
38:39waste this is personally I I felt very
38:42very strong example and I liked this
38:45move by manra they where they have gone
38:48for plastic free so earlier they were
38:50using these kind of packet and now they
38:52are using this and this is 100%
38:54recyclable so this is paper bag and even
38:58the bubble wrap which is made of plastic
39:00earlier they were using now they are
39:02using instead of bubble wrap they are
39:04using the uh scary used cartoon boxes
39:08shredded material so they are putting
39:10inside so that the safe delivery of
39:12those frile item can be insured even
39:14instead of using that plastic tape
39:17cellot tape kind of thing now they are
39:20using the paper tape which is which is
39:22you know very beautiful move and then
39:24for putting that invoice there were
39:27earlier using that uh small polythene
39:30bag now they are using the craft paper
39:33pouch for doing the same thing and then
39:36uh they are using RFID tagged and then
39:38this is 100% recyclable although I could
39:41not see the initiatives to collect these
39:43bags again and recycle but yes even then
39:46this this because this is paper and uh
39:49still polluting less environment but yes
39:51when you are talking about paper you
39:53should not go that much for
39:55deferrization so that also they will
39:58ensure that how we can ensure that uh
40:01deforestration should not happen right
40:04so they collaborated with so many
40:06organization like this is Kopi so kind
40:10of nonprofit organization who is taking
40:12care of all these uh you know packaging
40:15and recycl uh recycling the materials
40:18right and menra has also collaborated
40:21with the coton industry to make coton
40:23farming sustainable and uh so that they
40:26can use that coton for you know using
40:29instead of bubble wrap which is made of
40:30plastic they can use coton and their
40:33warehouses are also solar powered
40:35enabled so now they are moving towards
40:38that right so all the Fulfillment
40:39centers are not like that but they are
40:41moving towards that so this is very
40:43beautiful case of myantra so you can
40:46complete case you can go through uh with
40:48that case so the future perspective what
40:50can be the future perspective like MRA
40:53started this thing now they need to
40:55ensure that how they can can advance
40:58their vehicle Technologies for
41:00minimizing the emissions rooting should
41:02be proper how they can use the data
41:04analment analysis to compare their
41:06performance with the best industry
41:08performance because still they are not
41:10recollecting those packets paper packets
41:12right how they can go for that in the
41:14minimum cost right and then uh the scale
41:18of access to public transport and
41:20quality of Roads obviously that
41:22infrastructure parameters will uh
41:24improve so the transportation time will
41:27be minimum and whatever fuel we are
41:29spending on the road that we can
41:31minimize right total distance we can in
41:33that way using routing map we can
41:35minimize battery operat Vehicles
41:37obviously the best option but how much
41:40distance we can use of uh battery operat
41:43Vehicles right that is also one question
41:45so then intermodel kind of network you
41:47need to use sometimes you have to use
41:50the diesel or petrol engine sometimes if
41:53infrastructure allows you you can go by
41:55ship you can go by cycle
41:57electrical Cycles so those kind of
41:59things you can use right these can be
42:02means these are future research areas
42:04how we can diesel or petrol we can use
42:06the now we are talking about methane and
42:09some other ingredients you will add into
42:11that so that the efficiency can be
42:13improved and then we talked about uh now
42:16four-wheelers are coming with the hybrid
42:18engines where the kinetic energy they
42:20are storing and uh uh charging their
42:23batteries and uh uh the performance
42:25mileage has increased uh
42:27significantly right so again you need to
42:30tab with the suppliers you need to tab
42:32with the uh customers okay you need to
42:35train them to ensure the complete
42:38collection and in that way you can you
42:40know ensure your green and sustainable
42:42Logistics activities throughout your uh
42:45distribution throughout your warehousing
42:46throughout your uh transportation system
42:49so that's all for uh Green Logistics in
42:53the next session we'll discuss about the
42:55lean practices how we can reduce the
42:57waste of that and we can ensure the uh
43:01minimum carbon footprint so these are
43:03some of the references uh you can go for
43:07these
43:08references so content has been prepared
43:11some pictures have been taken from these
43:12references so that's all thank you very
43:14much

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