Green+Logistics

Green Logistics ASCI 644 Christy Jones Brian Wolf

toc =__// I. Green Logistics //__= -What is Green Logistics?

Logistics are at the heart of the operation of modern transport systems and implies a degree organization and control over freight movements that only modern technology could have brought into being.

It has become one of the most important developments in the transportation industry. Greenness has become a code word for a range of environmental concerns, and is usually considered positively. It is employed to suggest compatibility with the environment, and thus, like logistics is something that is perceived as beneficial. When put together the two words suggest an environmentally friendly and efficient transport and distribution system. Supply chain management practices and strategies that reduce the environmental and energy footprint of freight distribution. It focuses on material handling, waste management, packaging and transport. The World Commission on Environment and Development Report (1987), with its establishment of environmental sustainability as a goal for international action, gave green issues a significant boost in political and economic arenas. The transportation industry is a major contributor to environmental issues through its modes, infrastructures and flows. The developing field of logistics was seen by many as an opportunity for the transportation industry to present a more environmentally friendly face. Interest in the environment by the logistics industry manifested itself most clearly in terms of exploiting new market opportunities. While traditional logistics seeks to organize forward distribution, that is the transport, warehousing, packaging and inventory management from the producer to the consumer, environmental considerations opened up markets for recycling and disposal, and led to an entire new sub-sector: reverse logistics.

** Reverse Distribution **
This reverse distribution involves the transport of waste and the movement of used materials. While the term reverse logistics is widely used, other names have been applied, such as, reverse distribution, reverse-flow logistics, and green logistics. Inserting logistics into recycling and the disposal of waste materials of all kinds, including toxic and hazardous goods, has become a major new market. There are several variants: An important segment is customer-driven, where domestic waste is set aside by home-dwellers for recycling. This has achieved wide popularity in many communities, notably because the public became involved in the process. A second type is where non-recyclable waste, including hazardous materials, is transported for disposal to designated sites. As land fills close to urban areas become scarce, waste has to be transported greater distances to disposal centers. A different approach is where reverse distribution is a continuous embedded process in which the organization (manufacturer or distributor) takes responsibility for the delivery of new products as well as their take-back. This would mean environmental considerations through the whole life-cycle of a product (production, distribution, consumption and recycling/disposal). Reverse logistics The first reflections on the reverse logistics appeared in the early 80s but the first detailed definitions are more recent (middle of 90s). Since then, they have been several definitions and names of reverse logistics. They defined the reverse logistics as being “The process of planning, implementing, and controlling the efficient, cost effective flow of raw materials, in-process inventory, finished goods, and related information from the point of consumption to the point of origin for the purpose of recapturing or creating value or proper disposal” To add the principles of the green logistics in this definition of the reverse logistics, the definition of Free-Logistics would be the following one: The reverse logistics is the process of planning, implementing and controlling the performance: In order to recapture, create or dispose of the value of sold products and the associated packaging's, by minimizing the impact on the environment and the utilization of involved resources. (http://www.google.com/#hl=en&sugexp=ldymls&xhr=t&q=reverse+distribution+green+logistics\&cp=37&pf=p&sclient=psy&aq=f&aqi=&aql=&oq=reverse+distribution+green+logistics\&pbx=1&fp=d46d7fcb6d497136)
 * 1) Reverse distribution: Initial version of the reverse logistics, the reverse distribution, is defined as the return, reverse movement of a product ensuing from its re-use, its recycling or its arrangement.
 * 2) Green logistics: Later, by trying to integrate the environmental aspect, the concept of green logistics appeared: saving of resources, elimination of waste and productivity’s improvement, by minimizing the impact on the environment.
 * 3) Reverse logistics: The most used definition is surely that of Rogers and Tibben-Lembke (1998).
 * of raw materials utilization,
 * of in process inventory: stock, production, finished products,
 * of the information flow management from the customer to the supplier

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= //__II. Green logistics in transport system__// =

Green Logistics
Supply chain management practices and strategies that reduce the environmental and energy footprint of freight distribution. It focuses on material handling, waste management, packaging and transport. The term has wide appeal, and is seen by many as eminently desirable.

Many paradoxes and inconsistencies arise, which suggest that its application may be more difficult than what might have been expected on first encounter. Although there has been much debate about green logistics, the transportation industry has developed very narrow and specific interests. In common with many other areas of human endeavor, greenness became a catchword in the transportation industry in the late 1980s and early 1990s. It grew out of the growing awareness of environmental problems, and in particular with well-publicized issues such as acid rain, CFCs and climate change.

The transportation industry is a major contributor to environmental issues through its modes, infrastructures and flows. The developing field of logistics was seen by many as an opportunity for the transportation industry to present a more environmentally friendly face. While traditional logistics seeks to organize forward distribution, that is the transport, warehousing, packaging and inventory management from the producer to the consumer, environmental considerations opened up markets for recycling and disposal, and led to an entire new sub-sector: reverse logistics.

Inserting logistics into recycling and the disposal of waste materials of all kinds, including toxic and hazardous goods, has become a major new market. There are several variants: An important segment is customer-driven, where domestic waste is set aside by home-dwellers for recycling. A second type is where non-recyclable waste, including hazardous materials, istransported for disposal to designated sites. A different approach is where reverse distribution is a continuous embedded process in which the organization (manufacturer or distributor) takes responsibility for the delivery of new products as well as their take-back. This would mean environmental considerations through the whole life-cycle of a product (production, distribution, consumption and recycling/disposal). How the logistics industry has responded to the environmental imperatives is not unexpected, given its commercial and economic imperatives, but by virtually overlooking significant issues, such as pollution, congestion, resource depletion, means that the logistics industry is still not very ‘green’.

Paradoxes of Green Logistics in Transport systems
Several inconsistencies with regards to environmental compatibility become evident. Five basic paradoxes 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. Corporations involved in the physical distribution of freight are highly supportive of strategies that enable them to cut transport costs in a competitive environment. On some occasions, the cost-saving strategies pursued by logistic operators can be at variance with environmental considerations. Environmental costs are often externalized. This means that the benefits of logistics are realized by the users (and eventually to the consumer if the benefits are shared along the supply chain), but the environment assumes a wide variety of burdens and costs. Society in general, and many individuals in particular, are becoming less willing to accept these costs, and pressure is increasingly being put on governments and corporations to include greater environmental considerations in their activities.

• Time / Speed.
In logistics, time is often the essence. By reducing the time of flows, the speed of the distribution system is increased, and consequently, its efficiency. This is achieved in the main by using the most polluting and least energy efficient transportation modes. The significant increase of air freight and trucking is partially the result of time constraints imposed by logistical activities. The time constraints are themselves the result of an increasing flexibility of industrial production systems and of the retailing sector. Logistics offers door-to-door (DTD) services, mostly coupled with just-in-time (JIT) strategies. Other modes cannot satisfy the requirements such a situation creates as effectively. This leads to a vicious circle. The more DTD and JIT strategies are applied, the further the negative environmental consequences of the traffic it creates.

• Reliability.
At the heart of logistics is the overriding importance of service reliability. Its success is based upon the ability to deliver freight on time with the least threat of breakage or damage. Logistics providers often realize these objectives by utilizing the modes that are perceived as being most reliable. The least polluting modes are generally regarded as being the least reliable in terms of on-time delivery, lack of breakage 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 least environmentally-friendly modes.

• 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 and stockpile. Consequently, a reduction in warehousing demands is one of the advantages of logistics. This means however, that inventories have been transferred to a certain degree the 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 exhibit 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.

• E-commerce.
The explosion of the information highway has led to new dimensions in retailing. One of the most dynamic markets is e-commerce. This is made possible by an integrated supply chain with data interchange between suppliers, assembly lines and freight forwarders. Even if for the online customers there is an appearance of a movement-free transaction, the distribution online transactions create may consume more energy than other retail activities. The distribution activities that have benefited the most from e-commerce are parcel-shipping companies such as UPS and Federal Express that rely solely on trucking and air transportation. Information technologies related to e-commerce applied to logistics can obviously have positive impacts. So once again, the situation may be seen as paradoxical.

Although there is a clear trend for governments, at least in their policy guidelines, to make the users pay the full costs of using the infrastructures, logistical activities have largely escaped these initiatives. - The focus of much environmental policy is on private cars (e.g. emission controls, gas mixtures and pricing).

- For example diesel fuel is significantly cheaper than gasoline in many jurisdictions, despite the negative environmental implications of the diesel engine. --//Yet trucks contribute on average 7 times more per vehicle-km to nitrogen oxides emissions than cars and 17 times more for particulate matter. The trucking industry is likely to avoid the bulk of environmental externalities it creates, notably in North America.//
 * While there are increasingly strict regulations being applied to air transport (noise and emissions), the degree of control over trucking, rail and maritime modes is less.**

The hub structures supporting many logistical systems result in a land take that is exceptional. - Airports, seaports and rail terminals are among the largest consumers of land in urban areas. -- For many airports and seaports the costs of development are so large that they require subsidies from local, regional and national governments. -- The dredging of channels in ports, the provision of sites, and operating expenses are rarely completely reflected in user costs. -- The trend in logistics towards hub formation is clearly not green.

The people involved in logistical operations have a strong bias to perceive green logistics as a mean to internalize cost savings, while avoiding the issue of external costs.

The top environmental priority is commonly reducing packaging and waste. These observations support the paradoxical relationship between logistics and the environment that reducing costs does not necessarily reduce environmental impacts.


 * http://people.hofstra.edu/geotrans/eng/ch8en/appl8en/ch8a4en.html**

The Plan for Green logistics
Although the environment is not a major preoccupation or priority in the industry itself, reverse distribution has opened up new market possibilities based upon growing societal concerns over waste disposal and recycling.

//**Here the environmental benefits are derived rather than direct**//. - The transportation industry itself does not present a greener face, indeed in a literal sense reverse logistics adds further to the traffic load.

- The manufacturers and domestic waste producers are the ones achieving the environmental credit.

- Pressures are mounting from a number of directions that are moving all actors and sectors in the economy in the direction of increasing regard for the environment. In some sectors this is already manifest, in others, such as the logistics industry, it is latent. The issue is when and in what form it will be realized.

Three scenarios are possible.

//While not mutually exclusive, they each present different approaches and implications://
 * • A top-down approach where ‘greenness’ is imposed on the logistic industry by government policies through regulations;**
 * • A bottom-up approach where environmental improvements are coming from the industry itself through the adoption of best practices;**
 * • A compromise between the government and industry, notably through certification.**


 * First is that government action will force a green agenda on the industry, in a top-down approach.**


 * - The least desirable outcome for the logistics industry, it is already evident that government intervention and legislation are reaching ever more directly over environmental issues**
 * -- In North America there is a growing interest in road pricing, with the re-appearance of tolls on new highways and bridges built by the private sector, and by congestion pricing, especially in metropolitan areas.**
 * - Pricing is only one aspect of government intervention.**

//A difficulty with government intervention is that the outcomes are often unpredictable, and in an industry as complex as logistics, many could be unexpected and unwanted.//
 * Legislation controlling the movement of hazardous goods, reducing packaging waste, stipulating the recycled content of products, the mandatory collection and recycling of products are already evident in most jurisdictions.**
 * - Indeed, it is such legislation that has given rise to the reverse logistics industry.**
 * -- Truck safety, driver education, limits on driver’s time at the wheel, are among many types of government action with a potential to impact the logistics industry.**


 * - If a top-down approach appears inevitable, in some respects at least, a bottom-up solution would be the industry preference.**
 * -- Its leaders oppose leaving the future direction to be shaped by government action.**


 * - There are several ways a bottom-up approach might come about.**
 * --** //As with reverse logistics, these occur when the business interests of the industry match the imperatives of the environment.**//

Less predictable, but with a much greater potential impact on the greenness of the industry, are possible attitudinal changes within logistics and without.

- Firms have found that by advertising their friendliness towards the environment and their compliance with environmental standards, they can obtain an edge in the marketplace over their competitors

Somewhere between the bottom-up and top-down approaches are the moves being implemented with environmental management systems.

Although governments are involved in varying degrees, a number of voluntary systems are in place, notably ISO 14000 and EMAS (Environmental Management and Audit System).

- In these systems firms receive certification on the basis of establishing an environmental quality control tailored to that firm, and the setting up of environmental monitoring and accounting procedures.

- Obtaining certification is seen as evidence of the firm’s commitment to the environment, and is frequently used as a public relations, marketing, and government relations advantage.

- This represents a fundamental commitment of the corporation to engage in environmental assessment and audit that represent a significant modification of traditional practices, in which efficiency, quality and cost evaluations prevailed.

It can be argued that the paradoxes of green logistics make it impossible for the logistics industry to become significantly greener.

The internal inconsistencies between the goal of environmental sustainability and an industry that gives undue preference to road and air transport can be seen as being irreconcilable.

Yet internal and external pressures promoting a more environmentally-friendly logistics industry appear to be inexorable. Of the three possible directions by which a greener logistics industry may emerge, it is realistic to consider that they will concomitantly help shape the industry of the future. http://people.hofstra.edu/geotrans/eng/ch8en/appl8en/ch8a4en.html

Green house gas (GHC) emissions
Transport is certainly an energy- intensive industry involving high levels of direct and indirect GHG emissions.

- According to Carbon Budget and Trends Annual Report, 2007, global carbon emissions rose rapidly during 2007 with industrializing nations like China and India producing more than half of mankind's output of carbon dioxide CO2 which happens to be the main cause of global warming.

-- It should be noted that 450 parts per million (ppm) of CO2 leads to two degrees Celsius increase in atmospheric temperature with disastrous consequences in terms of global warming

Logistics enterprises are being encouraged to make progress in this field, not least because by doing so they can proactively meet potential future demands from the authorities concerned.

//**Green Logistics in marketing**//
Many companies now market so-called «green logistics».

- In the future logistics service providers will feel compelled to act on account of society’s expectations and in consideration of the structural and political framework, which will encourage them to reduce emissions.

Initiatives with which to measure a product’s carbon footprint – one of which has been successfully established in the United Kingdom, for example, and is currently being tested in Germany – call for reliable information on greenhouse gas emissions as well as a unified data collection system.

- As this has been lacking so far, ISO 14064 can help to close the gap. It represents an international standard that enables greenhouse gas emissions to be measured and verified for public and private organisations

-- Under the overall guidance of the International Organization for Standardization (ISO), several well-known organizations developed the norm. These include the - World Business Council for Sustainable Development (WBCSD) from the private enterprise sector, the - US think tank World Resources Institute (WRI), the - United Nations Framework Convention on Climate Change (FCCC), the - United Nations Intergovernmental Panel on Climate Change (IPCC) and the - International Accreditation Forum (IAF), an international association of conformity assessment accreditation bodies.

ISO 14064-1 applies to companies that voluntarily measure their greenhouse gas emissions, as well as to emissions consultants in the greenhouse gas field.

- The standard describes the basis and requirements for drafting, developing, managing and reporting a firm’s greenhouse gas status.

Urban transport air pollution
Transport no doubt plays a crucial role in the proper and efficient functioning of our cities, but it is also responsible mainly for air pollution. Vehicle emissions are considered a serious issue in most metro cities of the world.

- The levels of Suspended Particulate Matter (SPM) is much higher than the standard of 90 (as in 1992) set by the World Health Organization (WHO).

Motor vehicles are prone to emit large quantities of Total Organic Gases (TOG) including - Hydrocarbon (HC), - Carbon Mono oxide (CO), - Fine Particulate Matter (PM), - Nitrogen Oxide (NOx), and - Sulphur Oxides (SOx).

These air pollutants cause severe health and environmental effects.

- The fine Particulate Matter (PM) results in aggravating respiratory and cardio vascular diseases and impairing lung function.

Besides that, the environment may get degraded by way of acid rain, eutrophication, visibility impairment and, of course, climate change.

The air pollution levels in our cities are disturbing the number of motor vehicles moving on the roads today is certainly much more than in the past. Mass transport services like buses and suburban rail systems are generally overcrowded. They are irregular and involve long waiting times. This naturally leads to a massive shift to personalized transport and para-transit modes.

Air Quality Management - Measures
Interventions need to made, green transport through green logistics should be the goal.

- Maintenance of air quality standards is possible through setting an ambient air quality monitoring network for vehicular emissions and simultaneously helping motorists to make the transition.

- The variety of measures that need to be undertaken can be on following lines: • (a) Diesel engines emit carbon particles TSP, heavy hydrocarbons, sulphate and other by-products of combustion, and petrol engines also emit CO, NO and other volatile compounds. However, diesel engines are considered as relatively dirtier and government should discourage their use through suitable policy measures including differential pricing. • (b) The government should promote the use of alternative cleaner fuels like liquefied petroleum gas (LPG) and compressed natural gas (CNG). it is already doing this gradually and effectively. • (c) Use of old vehicles should be effectively curbed. Shortage of finance or fear of unemployment should not come in the way of enforcement of government directives. Petitions for judicial intervention should be quickly dealt with. Obsolete models, except those used for vintage car ralleys, ought to be made to retire. • (d) Improvement in fuel quality in terms of lower surphur content in diesel and lower benzene and aromatics in petrol should be enforced. • (e) Setting up of emission standards for all kinds of motor vehicles is necessary. • (f) The local enforcement agencies should launch sustained drives against smoke-belching vehicles The government should also bring in pedestrian safety laws and clear footpaths of all encroachments to allow pedestrians their right to walk safely. • (g) Better integration between rail transport systems and other ‘feeder' bus services and water transport facilities should be brought about by linking them together. Common ticketing and information systems to offer seamless connections between different transport modes can also be thought of. Elevated railways integrating LRT and MRT lines may be constructed to discourage private car ownership.

Modal Shift
The question of changing the modal split in favor of railways and waterways also needs to be addressed seriously. - It is a well-established fact that road freight vehicle movements give out greater carbon emissions per tonne kilometer than rail or water borne freight.

The share of rail transport in freight movements, not in absolute but relative terms, has been declining relative to road transport, because of the accessibility and door-to-door delivery advantage enjoyed by road transport.

This however does not augur well from the environment and sustainability viewpoint. However, for logistics providers road transport still continues to be the favored mode for the reason that their criterion of measuring transportation costs differs from that of the government. - The costs of environmental degradation for them are external and do not need internalization for business accounting purposes.

It is here that policymakers should use their ingenuity in evolving such fiscal, regulatory and organizational measures which will bring about a modal shift from road to rail and water transport. - There is no evidence yet of serious thinking on the part of policymakers to bring about such environmentally desirable modal shift from road to rail and water.

The reason is not far to seek. The decision about mode choice by shippers of freight involves many complex issues. It depends upon a variety of factors influencing performance of rail freight movements and the costs in terms of money and time that is to be borne ultimately. It is therefore necessary to identify the barriers that prevent the desired modal shift and evolve suitable measures to achieve the objective. It is the logistics managers who can really enlighten us on the eco-friendly way of influencing mode choice.

__**Read more: http://www.articlesbase.com/environment-articles/green-logistics-urban-air-quality-management-and-biofuels-use-by-dr-s-k-modak-806301.html#ixzz1FJNHznG7**__ __**Under Creative Commons License: Attribution**__

Switch to Bio-fuels
Due to soaring prices in the world oil market during the last few decades, need arose to break free from oil and use alternative energy sources like bio-fuels which would cut oil demand, provide energy security and prevent climate changes.

- Efforts were begun to promote research and development in clean alternative energy options like wind, water, solar and hydrogen resources.

- However, a switch to bio-fuels- specifically ethanol - was looked upon as the easier way to achieve the objective


 * //The question often being asked is whether reliance on bio-fuels would prove a good strategy.//**

Researches undertaken by International Food Policy Research Institute (IFPRI) reveal a different story.

- During the period 2000-2007 there was a boom in ethanol production. -- Brazil and USA controlled the market producing 90% of ethanol.

- European Union (EU) also followed suit. -- Large tracts of land were diverted towards production of palm and soya-bean to produce bio-diesel and towards corn and sugarcane to produce ethanol.

This led to a surge in commodity prices throughout the period. According to IFPRI, if this trend continues, by 2020 - prices of corn are estimated to rise from present 26% to 72%, - of sugar from 12% to 277% and of - oilseeds from 18% to 44%.

//**In this situation, rich countries may continue to emit majority of green house gases (GHGs) and the poor countries will bear the burden of climate change in terms of hotter climate, lesser rain, and deforestation, and also low incomes, malnutrition and greater dependence on agriculture and natural resources for living.**//

It is feared that the risks in switching to agro-based fuels are real. The switch may trigger further deforestation and destruction of the ecosystem.

Warnings are therefore being given that agro-fuel policies should not be pursued further without a proper risk analysis.

- According to a UNIDO document, "the key concern here is the competition between land use for bio-energy production and food and animal food production." The fuel versus food issue is really enigmatic.

- The document further states that "the coupling of energy market with food market can increase food prices and hence worsen the access to affordable food for many". This warning can be ignored only at our peril.

EMS- Environmental Management System
While the potential benefits are significant, relatively few companies are pursuing the opportunity to improve their financial and environmental performance by explicitly addressing environmental costs. A clear, simple framework can help companies adopt Green Supply Management System.

By following the four-step framework companies can pinpoint and understand the costs and environmental impacts that result from materials management decisions.

• **Identify Costs**: A systematic review of the facility or process is conducted to determine if and where significant environmental costs occur. • **Determine Opportunitie**s: The identified functional areas and processes are evaluated to determine which changes will likely yield significant cost savings and reduce environmental impacts. Potential changes are evaluated with criteria that can include the magnitude of potential cost improvement, the types of environmental burdens, and the barriers to change. This step yields a possible set of alternatives with significant potential for improving costs savings and reducing environmental impacts. • **Calculate Benefits**: Quantitative and qualitative analyses of the costs and benefits of a selected group of projects are conducted. Some of the analytical tools and methods used during this step are activity-based costing approaches, net present value (NPV) calculations and risk evaluations. The result is a summary of the merits of the current process and any proposed alternatives. • **Decide, Implement and Monitor:** First, a decision is made to continue with the status quo or to pursue a new approach. Financial benefits and/or environmental improvements then occur as changes are put into action. The new practices are institutionalized as information collection processes are integrated into the company’s materials resource planning (MRP II), enterprise resource planning (ERP) systems and other information systems. After implementation, a periodic review and continuous improvement effort allows decision makers to evaluate their progress and pursue additional opportunities.



After adopting the Green Supply Chain Management (GCSM), next in line are EMSs or Environment Management Systems.

- Although the role coincides with the GCSM, EMSs are strategic management approaches that define how an organization will address its impact on the natural environment.

- More than 88,800 facilities worldwide had certified their environmental management systems (EMS) to ISO 14001, the global EMS standard, and thousands more had adopted uncertified EMSs6.

An EMS consists of a collection of internal policies, assessments, plans and implementation actions affecting the entire organization and its relationships with the natural environment.

EMSs involve

Establishing an environmental policy or plan;

- Undergoing internal assessments of the organization’s environmental impacts (including quantification of those impacts and how they have changed over time);

- Creating quantifiable goals to reduce environmental impacts,

- Providing resources and training workers;

- Checking implementation progress through systematic auditing to ensure that goals are being reached;

- Correcting deviations from goal attainment; and undergoing management review

EMSs are intended to help organizations embed environmental practices deep within their operational frameworks so that protecting the natural environment becomes an integral element of their overall business strategy.

//**EMSs implementation requires companies to get ISO 14001 certified.**//

- ISO 14001 adoption requires certification by an independent third party auditor who helps to ensure that the EMS conforms to the ISO 14001 standard.

- Once certified, the ISO 14001 label indicates that the organization has implemented a management system that documents the organization’s pollution aspects and impacts, and identifies a pollution prevention process that is continually improved over time7.

//**Although organizations have been using EMSs to be more environmentally sustainable, issue is that EMSs do not require organizations to improve their environmental performance, instead focus on creating and documenting environmental policies and procedures. EMSs therefore may represent only symbolic efforts to improve an organization’s image.**//

The relationship between EMSs and GSCM practices has potentially complementary and significant implications for an organization’s environmental sustainability because together they offer a more comprehensive means of defining and establishing sustainability among networks of business organizations.


 * //However, when EMSs are adopted in the absence of GSCM, environmental benefits are likely to diminish. This is because the organization’s supply chain network does not share its environmental goals and environmental sustainability of any organization is impossible without incorporating GSCM practices.//**

Future of green logistics
Greening your supply chain means understanding your logistics operations environmental footprint. Your supply chain demands energy, consumes resources, produces waste products, and causes the release of emissions all factors that affect our shared environment. Getting a clear look into these impacts is the first step in greening your supply chain.

There are many of the reasons for building a greener supply chain. These include

- Responding to pressures from regulations, - Increased costs of resources, - The importance of ethical (in this case green) business practices, - The growing expectation among customers that companies will work to reduce their environmental impact.

As environmental pressures promise to grow ever-more comprehensive, a company’s supply chain response may enjoy significant competitive advantage over companies who are less quick to respond to regulatory pressures, increased energy costs, and growing public expectations. Too many companies, however, have been slow to focus on the potential gains that green supply chains can cause.

One reason for this, identified in the EPAs report “The Lean and Green Supply Chain,” - is that cost accounting systems often hide the size of the environmental costs companies incur.

Just because they are often difficult to see on a conventional spreadsheet, does not meant that these costs are not real or measurable. Categories of cost that companies incur from environmental factors include - The value gained by the substitution, - Reuse, or - Recycling of production inputs; - More effective utilization of waste and by-products through conversion to usable forms; - Lower energy consumption; - Cuts in material storage and handling costs; - Savings from safer conditions, and - Cost reductions for waste disposal and discharge activities.

//**This list is in no way exhaustive, it just illustrates the ways in which environmental costs can be effectively accounted for and reduced.**//

The future looks green and businesses that ignore their environmental impact do so at considerable risk. A company’s supply chain is no different, and their logistics should align with a comprehensive corporate environmental strategy. Companies in a variety of sectors are increasingly turning to third-party logistics providers (3PLs) to organize and green their supply chains. 3PLs bring experience and specialized skills that can most efficiently measure a company’s environmental logistics impact and the ways available to reduce that impact. As demonstrated by a number of studies, this will not only help to save the world, but will help businesses save another kind of green money.

__**http://www.parcelindustry.com/ME2/dirmod.asp?sid=23C6283BD51B46348B616C079EEB2E21&nm=Miscellaneous&type=Publishing&mod=Publications::Article&mid=8F3A7027421841978F18BE895F87F791&tier=4&id=DC367DE002D94EA093D5178B93C537F5**__

=__//** III. Sustainable transport **//__=

So what exactly is sustainable transportation? Sustainable transportation can be defined by this statement from the Institute for Transportation and Development, sustainable transportation is “solutions that cut greenhouse gas emissions, reduce poverty, and improve the quality of urban life.” So with that how do bio-fuels help us to create sustainable transportation? Bio-fuels are defined as” fuels produced directly or indirectly from organic material – biomass – including plant materials and animal waste.” The idea of sustainable transportation is tied to bio-fuels because they are renewable, don’t produce greenhouse emissions and they create more jobs for those individuals that create them. There is one other way of sustainable transportation and that is electric motors, with those electric motors powered by batteries or hydrogen move the vehicle along. There are two problems with electricity and that is that if you use a battery you have to plug it and that means that the energy still has to come from somewhere either a nuclear or coal power plant and those create greenhouse emissions and are not renewable. The other problem is that with hydrogen needs to be created and that requires the use of power from nuclear or coal power plants which we have already established as not being renewable and a hazard to the environment.

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**Bio-Fuels in Sustainable Transportation**
So how exactly can you use these Bio-fuels in sustainable transportation? Well if you have a diesel engine it would only require a few modifications to the engine and you are ready to be part of the green transportation movement. In fact most Chevy cars are already to run on ethanol. So what area’s can you use Bio-fuels? As stated above if you have a diesel engine it is really simply and in the follow cases but there are some other aspects that we will look at below:
 * Train – here is a statement from CSX one of the foremost company’s steer heading environmental stewardship about how they reduce their carbon footprint. “CSX’s long-standing commitment to continual improvement has allowed the company to improve its fuel efficiency through new technology and conservation efforts. “ CSX has also uses auxiliary power units (APU) and automated engine start stop (AESS) to reduce the locomotive idling.
 * Truck – In a news report trucking company J.B. Hunt has teamed with US biodiesel producer SunEco Energy to supply the trucking company with algae-based biodiesel.




 * Airplane – Most airlines and air cargo companies are currently working on tests and trials of different blends of bio-fuels for use in their aircraft. Most notably airplane manufacture Boeing has this statement on their website,” Boeing recognizes the serious challenges facing our eco-system and is committed to improving the environmental performance of its operations, products and services. Our greatest contribution to meeting the challenge is to pioneer new technologies for environmentally progressive products and services --> Lufthansa Cargo has taken the initiative by starting 6 month trials on their cargo plan and the Lufthansa has also began the same trials on their passenger airplanes by running one engine on bio-fuel.

**Sustainable Transpiration Cost Benefits**
So the big question is why are all of these companies dumping tons of money into bio fuels? Well that is a simple question to answer if you have ever filled up your car recently you see the chart below:



As you can see with the sky rocking price for gas and diesel and with current trends putting the average price at around $4.00 a gallon by the end of this year, in a report from the US department of energy states that the average price for Bio-diesel was $2.55 and if that is true today it would save you $1.17 at today’s rate of $3.72. So that is what biodiesel can save you what about big companies, below are some examples of the cost benefits from some of them:


 * Today, CSX can move a ton of freight nearly 500 miles, on average, per gallon of diesel fuel. CSX has invested $2 billion over the last decade to improve its locomotive fuel efficiency and reduce greenhouse gas.”


 * Poland Springs Water a brand of Nestle Waters switched to “biodiesel over ultra-low-sulfur diesel and the improvement in fuel efficiency from biodiesel, the company has saved over $200,000.”



http://www.american.com/archive/2010/january/the-green-con-job