Sustainability of Logistics

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The key takeaways are about sustainability initiatives in logistics and supply chain for the apparel industry such as green supply chain management, reverse logistics, green procurement, and green warehousing practices.

Some of the main sustainability initiatives discussed are green supply chain management, reverse logistics, green procurement, and sustainable warehousing practices.

Some of the benefits of green supply chain management include lower supply chain costs, competitive advantages, reduced risk, improved productivity, and improved public image.

SUSTAINABILITY INITIATIVES IN THE

LOGISTICS AND SUPPLY CHAIN &


WARE HOUSING IN APPERAL
INDUSTRY:
AS WE KNOWN THAT IN APPERAL INDUSTRY
USES DISTRUBTION REQUIRES

Green logistics For industries with lower margins, such as the clothing
industry, green supply chain management can lead to lower supply chain
related costs. These cost reductions can be translated into significant
competitive advantages and profit. Other benefits of green supply chain
management include reducing risk, improving productivity, increasing
property value, improving public image and creating healthier
environments.

1.Green supply chain management (GRSCM)

concepts manage environmental impacts where they occur, ideally before


they occur. GRSCM tries to minimise the undesirable environmental
impacts of supply chain processes within the participating
organisations and the whole supply chain as well. Srivastava (2007)
defined GrSCM as “integrating environmental thinking into supply-
chain management, including product design, material sourcing and
selection, manufacturing processes, delivery of the final product to the
final consumer as well as end-of-life management of the product after
its useful life”.

2 Reverse logistics

Reverse logistics “the process of moving goods from the point of


consumption to their place of origin for the purpose of capturing
the value or proper disposal”

Reverse logistics include logistics for product returns, recycling,


materials, substitution, ruse of materials, waste disposal, and
refurbishing, repair and remanufacturing

Products returns include defective products, unsold inventory or products


refused in cash on delivery’ for ecommerce transactions.

Warehouse provides platforms to handles and process such returns.


Warehouses also use reusable packing like reusable pallets, containers and
refill gas cylinders and refurbish materials, such value-added roles of
warehousing and are key factors in enhancing sustainability.

Green procurement is another subject important in the green supply chain.


Defined procurement as the process of “Deciding what, when and how
much to purchase; the act of purchasing it; and the process of ensuring that
what is required is received on time, and in the quantity and quality
specified”. Procurement activities include inventory management,
identifying requirements, determining requirement specifications, finding
appropriate suppliers, contract negotiation and management (price,
amount, quality, delivery schedules etc.), receiving, quality inspection,
storage and inbound distribution. Green procurement tries to minimise the
environmental impacts of selected products and services.

It is estimated that freight transport accounts for roughly 8% of energy-


related CO2 emission worldwide. The inclusion of warehousing and
goods handling is likely to add around 2 - 3 percent to this total. In the
road transport sector, the amount of energy used to move freight is
increasing at a faster rate than the energy consumed by cars and buses,
and may overtake it by the early 2020’s. Green logistics represent the
several strands that are moving freight transport externalities, city
logistics, reverse logistics and corporate environmental strategies
towards logistics and green supply chain management.

McKinnon and Woodburn differentiated four levels for green logistics

1. Strategic decision relating to the numbers, locations and capacity of


factories, warehouses, shops and terminals.

2. Commercial decisions on product sourcing, the subcontracting of


production processes and distribution of finished goods.

3. Operational decisions on the scheduling of production and distribution


that translate the trading links into discrete freight flows and determine
the rate of inventory rotation in warehouses.

4. Functional decisions relating to the management of logistical resources


Logistic activities are responsible for much of the environmental cost
associated with modern retailing. Environmental effects of green
logistics can be divided into six categories
Route mapping for green supply chain :

1. Greenhouse gas emission (GHG)s: Numerous gases have a global


warming effect with different degrees. Carbon dioxide is produced by
burning of fossil fuels in vehicles and power generation. It is the most
important GHG emitted by retailers. Also temperature control equipment
releases refrigerant gases that can have a global warming potential
thousands of times greater than CO2. Some large retailers measured their
“carbon footprints” ,

For example Marks Spencer has estimated that its logistics activities
comprise approximately 11% of its total CO2 emissions.

2. Noxious gases: These gases are nitrogen oxide, sulphur dioxide and
particulate matter, (PM10) affecting local air quality, human health,
vegetation and buildings negatively.
3. Noise: This is caused by mainly vehicles and distribution centres.

4. Accidents: The cost of personal injury/death, any damage to property


and released use of emergency services deemed to be environmental
costs.

5. Waste: Retail logistics operations generate large quantities of waste,


mainly in the form of packaging material. Products damaged or life-
expired in the supply chain have to be rejected and this can also be
considered a type of logistics-related waste. Today retailers must have
controls for the recycling and reuse of packaging and other waste.

6. Visual intrusion: Many people dislike the appearance of trucks and


warehouses and they believe that they reduce quality.

The average grams of CO2 emitted per tonne-km for a deep-sea container
ship, freight train, heavy truck and long-haul airfreight are around 14,
30, 80 and 570, respectively. Changing freight from air or road to rail
and water-born transport can significantly decrease the retailer’s
footprint. Also air transport is significantly more expensive than
movement by sea, but the difference in rates does not ad- equately
reflect the huge difference in environmental costs.

The global apparel market has been changing under the influence of many
factors. One of the critical observations is that developed economies
have been shifting textile and apparel production to developing
economies and four major production blocks seem to have emerged as
the main competitors for this shifting production capacity: China,
India, Latin and South America, and Pan European and Mediterranean
regions. The number of links in a supply chain and logistics activities
are very important. It might consist of a single link from the
distribution centre to the shop or several links. Goods are transported
through each link in the retail supply chain, reflecting the retailer’s
sourcing strategy, the geographical structure of the logistics system and
the efficiency of vehicle routing. By achieving higher levels of vehicle
fill, the amount of truck traffic can be reduced. In order to allow more
fuel efficiency and reduce traffic congestion, deliveries must be inside
off-peak periods. Converting from conventional diesel fuel to
alternative fuels or to battery powered vehicles recharged with
electricity (generated by renewable means such as wind or water
power) can significantly cut emissions of CO2 and noxious pollutants .
H&M builds distribution centres in their international locations in order
to cut down lead times and potential logistical costs. Zara has the
opportunity to be one of the trendiest/low priced retailers, and one of
the market opportunities for Zara is to invest in internet retailing,
especially directed toward the U.S. market. Their European strategy
includes having a strong production and distribution facility in their
home country in order to have short production and lead times.

City logistics:

city logistics is the means over which freight distribution can take place in
urban areas as well as the strategies that can improve its overall
efficiency while mitigating externalities such as congestion and
emissions. It includes the provision of services contributing to
efficiently managing the movements of goods in cities and providing
innovative responses to customer demands.

Practices Related to Modal Choice, Vehicle Use and Routing

(1) Use of electric vehicles.

(2) Use of strategies to define the modal of transport to be used


considering its transport capacity and the reduction of environmental
impact.

(3) Mapping the energy and/or fuel consumption of the vehicle used.

(4) Planning of delivery routes contemplating the optimization and


reduction of emissions of polluting gases.

5. No return of containers to words proper planning towards freight


services mapping

6. ware house location want be centralised can be chosen from the point of
logistics to reduce the distances between the destinations of stores to
ware houses
7. mostly preferred the water way routes only mostly to transport to other
countries .

8. maintaining the logistics usage while transporting materials used to


maintain speed 50 to 60 speed /min so we can reduce the consumption
of lot of carbon emissions.

9. using the BS4 Motor vehicles of trucks and containers which transport
materials to destinations so that these vehicles consume the less
resources to reduce more carbon emissions.

one example of supply chain optimization is using a sustainable hanger


rather than a virgin plastic hanger in shipping, which can result in
savings of up to 20 percent. With an estimated 85 percent of plastic
hangers landfilled at the store end, eliminating them results in less
spending on disposal. Fashion companies can also use compression
packaging to pull air out of packaging, increasing efficiencies up to 25
percent.

Another approach is optimizing the retail packaging of garments, which


reduces the use of toxic glues and packaging footprint, and simplifies
assembly. This reduced packaging footprint enables more product to be
shipped in an ocean container or 53-foot trailer.

Plan transport routes, collaborate with other companies along "green


corridors", and ensure trucks are full in both directions.
 Offer "green shipping" options that use cleaner—but slower—transport
modes such as ocean and rail, and reduce truck and air miles.
 Reduce processing errors that result in using more energy-intensive
transport to meet delivery windows.
 Optimize carton size to item being shipped to reduce packaging waste.
 Make garments out of organic fabric, ship products in the most
sustainable way possible, and use recyclable packaging to reduce costs. In
addition, retailers can claim a significant marketing win. Communicating
your good work to consumers presents a powerful marketing tool that can
build brand loyalty and enhance your reputation as a sustainability leader.
 Create a profitable, sustainable retail environment that starts at the
storefront. Use natural lighting, and organic or recycled counters and
floors. Eliminate all plastic and acrylic. Sustainable hangers made from
recycled paper fibre bring out the beauty of organic materials and convey
your marketing message. Supply reusable or bioplastic shopping bags to
get your message out as well.

Create a profitable, sustainable retail environment that starts at the


storefront. Use natural lighting, and organic or recycled counters and
floors. Eliminate all plastic and acrylic. Sustainable hangers made from
recycled paper fibre bring out the beauty of organic materials and
convey your marketing message. Supply reusable or bioplastic
shopping bags to get your message out as well.
Warehouse Practices to wards sustainability initiatives

(1) Ergonomics and operational safety of the warehouse to improve


working conditions.

(2) Rainwater collection for use in warehouse operations. (3) Use of


photovoltaic panels for power generation in warehouses.

(4) Use of electric trolleys in warehouses.

(5) Use of less polluting fuels in forklifts.

(6) Mapping of waste in order picking operations.

Practices Related to Packaging Management

(1) Reuse, recycling and reverse logistics of packaging.

(2) Reduction of the use of supplies in production of packaging.

(3) Use of recycled material in the production of packaging.


(4) Development of campaigns to encourage the use of more sustainable
packaging.

(5) Packaging design focused on the optimization of handling.

Ware house management system:

Sustainability: sustainability ware house is about integrating, balancing,


and managing the economic, environmental, and social inputs of the
ware house operations.

social
Sustainable

economic environmental

Ware house design:

Energy efficiency – proper use of natural light and artificial light, use of
renewable resources of energy, use of energy efficient equipment , use
of sensors for energy conversations etc,

Temperature control- reduction of internal ware house temperature leds to


reduction in energy consumption and ultimately reduction in emission.

Water efficiency – efficient use of water in the ware house

Noise – control of noise pollution in the ware house.

Ware house location:

Proximity of the ware house to modes of publicity transportations is also a


factor affecting sustainability
SUSTAINABILITY IN WAREHOUSE:

Ware house layout : layout configuration of the ware house, design of


aisles, and storage systems have a direct bearing on the travel distances
and material handling. These factors affect the space utilization and
productivity of the warehouse ,thus, these have a major impacts on the
economic aspect of sustainability and on the social aspect as well.

Management of inventory – optimum levels of inventory minimizes the


total cost of storage against stock outs, in addition , control of non-
moving inventory, damage / loss of goods and inventory record
accuracy are relevant factors in sustainability.

Warehouse staff management and welfare – Occupational health &


safety, good work environment, automation of material handling,
training and work life balance are also critical factors affecting
sustainability.

Adopt enabling technology. A warehouse management system (WMS)


or an ERP system with a strong WMS module can improve efficiency
by suggesting the best routes and methods for picking or put-away. In
addition, the system provides automated pick lists that can be sent to
mobile readers and devices to help eliminate mistakes and reduce
wasted time and paper. Your warehouse will be neater and greener.
Using barcode or radio frequency identification (RFID) readers can
improve accuracy of transactions, and reduce picking errors. In fact,
research conducted at the University of Arkansas shows that using
RFID increased inventory accuracy by 27 per cent in just 13 weeks.

Rick management towards the ware houses:


Like any other operation, warehousing is also associated with various
ricks these includes rick of damage to goods as well as injury to
manpower.

Damage to goods due to :

1) Damage to goods due to fire, flooding, rodents

2)Loss of goods due to composition, obsolescence or pilferage

3)Shrinkage due to loss of moisture or evaporation

Injury to improve due to

1) Manual material han1dling

2)Falls from heights

3)Falling objects or rotating/ moving equipment

4) Trips and falls

5) collision with vehicles, fork lift trucks etc.

6)Electrical shocks from faulty equipment or loose writing

7) stacks toppling over

8) leakage of oils, chemicals or fumes

A formal rick management system should be in place this should a formal risk
management organisation , a risk management policy, risk manual, and risk
reporting,

Using risk management methodology like risk identification, risk assessment

(quantification), risk evaluation and risk migration should be place.

All employees should be trained on safety, CPR and first aid. Emergency

Evaluated procedures and mock fire drills should be carried out periodically.
IKEA sustainable supply chain
CENTRALISED WHARE HOUSE

ALTERNATIVE FULES

Alternative fuels are creating a lot of attention in the transportation sector.


Seeing major truck manufacturers running pilot programs of electric semis is a
big deal for the industry. Companies like Daimler, BYD, Volkswagen, Nikola,
Tesla, and Uber are providing the business case for the eletric trucks. And while
a lot of attention has been given to the semi-truck industry and how reducing
carbon emissions on cross-country trips are great for the environment, parcel
delivery companies have been seizing the momentum. Companies like UPS,
HDL, FedEx, and others have piloted multiple programs using electric delivery
vans and electric bikes or scooters within congested cities for last mile
deliveries. These pilots have shown that electric bikes, vans, and scooters are
fully capable of handling the demands of last mile deliveries while pulling
larger vehicles from already congested roads. Additionally, autonomous robots
and drones have garnered a lot of attention for their ability to make last
deliveries while reducing carbon emissions and Alternative fuels are clearly an
area that will continue to gain traction.

Some examples towards the alternative fuels in the ware house management :
amazon is investing in the hydrogen fuelled fork lifters in the warehouse
in U.S towards in logistics

Retail giant Amazon made waves with its recent forays into the
entertainment field. And now it looks like the sprawling enterprise is about
to pull the rug out from under hydrogen fuel cell skeptics.

Last week the company signed a deal with fuel cell innovator Plug Power for a
new generation of zero -emission, hydrogen-powered electric forklifts and other
equipment at its fulfilment centers.

Warehouse operations aren't the most exciting sector in the auto industry,
but the new Amazon forklift deal could make a big difference for the future of
fuel cell electric cars. That market has been slow to take off, but the Amazon
announcement adds momentum to the trend, helping to keep investors and auto
manufacturers interested in pushing the technology forward.

Fuel cell vehicles run on electricity, like the now-familiar battery electric
vehicles. Both types of EV emit no air pollutants. The main difference
is that fuel cells generate electricity on-the-go through a chemical
reaction. Battery EVs run on stored electricity.

That difference looms large in warehouse operations, where excess fat shaved
from time and space translates into big bottom-line savings.

Battery-powered forklifts require relatively long charging times, and extra


storage space for battery charging. In contrast, fuel cell forklifts can be fueled
up in a matter of minutes, like an ordinary gas-powered vehicle, and they don't
require a "battery room" or other excess storage.

Hydrogen fuel cell forklifts have already begun to establish a solid track record


in the logistics sector, and it looks like Amazon didn't take much convincing.

The recent deal enables the company to acquire more than 55 million common
shares in Plug Power in connection with a $600 million commitment from
Amazon to purchase goods and services from Plug Power.

Nikola motor company

NOKOLA MOTOR COMPANY is designed hydrogen fuel cell lorry in


European market towards zero emissions
This is how Nickola company works conversion of renewable energy to
hydrogen h2 which used in hydrogen fuel towards the vehicle and cut down
carbon emissions of zero emission towards environment.

AMAZON, UPS, , FEDEX , HITACHI are ordering


100000 electric delivery vans and cars vehicles form
rivan, chanje.

Ross Rachey, director of Amazon’s global fleet and products, said:


We’re trying to build the most sustainable transportation fleet in the world. It
also needs to be the most functional, the highest performing, the safest.

We are focused on driving efficiency into every aspect of the vehicle design —
everything from cabin heating to driver ergonomics to drivetrain design has
been optimized for time and energy, And then the echo effect of this, of causing
other logistics players in this space to also look at how they drive up efficiency
within their fleet, will have a very large impact.

And while they are not releasing specs, they did mention some details about the
technology that will be used in the vehicle to help the drivers:

That includes a digital instrument cluster and central display screen integrated
with Amazon’s logistics management, along with routing and package delivery
technology systems to make it easier for the drivers to focus on operating the
vehicle. The system removes the need for extra devices that provide address and
mapping information. Integrating Amazon Alexa will make it easy for drivers to
ask for help or use simple voice commands in the cargo bay when sorting
packages without having to manually enter commands or consult handheld
devices.

They have also clarified the timeline to bring the electric vehicle to production:

Amazon’s new electric delivery vehicles will begin delivering packages to


customers in 2021. The company plans to have 10,000 of the vehicles on the
road as early as 2022 and all 100,000 vehicles on the road by 2030 — saving
millions of metric tons of carbon per year by 2030.

This is a particularly impressive timeline, especially when you consider that


Rivian has yet to bring a vehicle to production, and its first vehicles, the R1T
and R1S, are only supposed to come to market in “late 2020.”
As we know that amazon business is mostly on the logistics towards customer
that they taken clear initiative towards environment to reduce the carbon
emissions by design the technology which cut carbons a lot like UPS, FEDEX,
tesla .as well.

As coming to VOLKSWAGEN had designed and


chartered two new carrier ships fuelled by liquified
natural gas

Volkswagen becomes first car maker


to use low-emission freight ships
that run on liquefied natural gas to
transport vehicles across the
Atlantic
 VW will use two new Siem car carriers to transport its vehicles across
oceans
 Both are powered by liquefied natural gas and are greener than other
freighters
 They will cut emissions of CO2 by up to 25%, NOx by up to 30%, soot
particles by up to 60% sulphur oxide by up to 100%, the manufacturer claims
 Each can contain up to 7,500 cars and are 200 metres long and 38 metres
wide
 It is the latest move by the car maker to repair its reputation after
Dieselgate 
Amazon practicing ware functions as
today, Amazon has more than 200,000
mobile robots working inside its warehouse network,
alongside hundreds of thousands of human workers. ...
This robotics race — led by Amazon — will have a
seismic impact on the warehouse industry, which
employs more than 1.1 million Americans today.

Amazon drone technology


which reduces less time towards the delivery and reduces less carbon emissions
towards the logistics supply
There are more than 1 million drones registered in the U.S. Most of them belong
to people flying them for fun, but a growing number are used commercially.
Companies including Amazon, UPS, Google and DHL are already exploring
ways to deliver packages with drones instead of trucks. Our new research
has measured how that shift would change how the U.S. uses energy, and the
resulting environmental effects.

Combining all the factors, we found that package delivery with small drones
can be better for the environment than delivery with trucks. On average in the
U.S., truck delivery of a package results in about 1 kg of greenhouse gas
emissions. In California, drone delivery of a small package would result in
about 0.42 kg of greenhouse gas emissions. That’s a savings of 54 percent from
the 0.92 kg of greenhouse gases associated with a package delivered by truck in
that state. In carbon-intensive Missouri the improvement would be smaller –
just a 23 percent reduction – but still better.

Small drones were better than any truck or van, whether powered by diesel fuel,
gasoline, natural gas or even electricity.
NIKE SUPPLY CHAIN TOWARDS OUT BOUND
LOGISTICS & WARE HOUSING SUSTAINABILITY
100% use of renewable energy. The facility sources energy from five locally generated
sources: wind, solar, geothermal, hydroelectric and biomass. Six on-site
wind turbines produce enough electricity to power 5,000 households, and
the on-site solar panels cover the size of three soccer fields.

The facility is fed by an infrastructure of canals, railways and highways.


99% of inbound containers reach the local container park, by water, not
road, saving 14,000 truck journeys a year. In addition, its Belgium location
places it at the centre of a 500km radius in which 60% of Europe’s buying
power is concentrated.
• Moving away from a traditional structure that requires more steel and
concrete, the warehouse is a rack-supported building, reducing waste and
material used, thereby minimizing its footprint.
More than 95% of waste generated on site is recycled. Pathways used by
employees around the facility are made from recycled footwear material, whilst
shipping cartons are compressed on site to reduce the amount of transportation
needed and decrease CO2 emissions.
• Natural light provided by many windows, a unique daylight capture system
and smart, automated LED lighting help to reduce electricity costs, reduce
environmental impact and provide a more productive workplace.
• The facility was carefully designed to support biodiversity in the surrounding
area. Flocks of sheep help maintain the landscaping, on-site beehives will
contribute to biodiversity through the pollination of flowers in the local area,
and water features assist water retention to create habitats and provide
evaporative cooling.
Zara towards sustainability in ware housing and
distribution:

DISTRIBUTION GREEN TO PACK & WAREHOUSES


MANAGEMENT

Our new logistics centres are built and managed to the highest international
sustainability standards, achieving the LEED certification by the U.S. Green
Building Council.

We have been systematically upgrading all our existing logistics platforms,


introducing eco-efficient lighting, improving insulation, installing sophisticated
climate-control equipment, supplying bicycles and electric vehicles for internal
transport, and using renewable energy sources.

100% of the energy consumed by our logistic centres in Spain comes from
renewable resources. In addition, the use of electricity from renewable sources
in all the company’s facilities has multiplied by almost 20 since 2014.

All this is an advance in our commitment to energy efficiency in all processes.


We have the commitment that 80% of the energy consumed in all of our
distribution centres, offices and stores will be clean in 2025.

In terms of packaging management, we have our Green to Pack program to


ensure we minimize packaging waste. The program is aiming to reduce waste,
mainly boxes and plastics:

Boxes are used up to six times

FSC certified _Recyclable

Optimized for transport

Use of recyclable plastics

Reduction of plastics
We have also committed to a Zero Waste to landfills from our operations by
2023. In 2018, 88% of the waste of our distribution centres (mainly cardboards,
plastics, wood, security tags and hangers) was reused or recycled

Flipkart s coborts towards warehouse management in


India tremendous hits in carbon emissions to reduce ..
Tucked away in a nondescript lane on the outskirts of Bengaluru, is the sorting facility of
e-commerce giant Flipkart. Walking into the hangar-like building, you can hear grinding
metallic noises.

That’s the sound of hundreds of robots, or cobots, as they are called, working
seamlessly with humans. The human workers place the products on the orange-
coloured robots, and the machines sort them after scanning the encoded information on
each parcel and placing them in the designated bins. “It is cool working with them,” says
Nakula Punji, one of the thousand-odd employees ...
These sustainable ware house practices plays major roll in logistics in
flipkart initiatives in India.

REFERNCES & biography

1. https://logisticsviewpoints.com/2019/10/14/help-save-mother-earth-
amazons-new-supply-chain-sustainability-shipping-option/

2. https://logistics.amazon.in/

3. https://nikolamotor.com/motor
4. https://www.triplepundit.com/story/2017/amazon-invests-hydrogen-fuel-
cell-electric-vehicles/18231

5. https://www.tandfonline.com/doi/abs/10.1080/19186444.2017.1401208?
journalCode=rncr20

6. https://sustainablelogistics.mit.edu/

7. https://purpose.nike.com/supply-chain-sustainability-index

8. https://www.sciencedirect.com/science/article/abs/pii/S0959652618312423

9. https://blog.solistica.com/en/sustainable-logistics-a-priority-for-supply-
chains

10. https://www.sciencedirect.com/science/article/pii/S2352146516306597

11. https://www.architectmagazine.com/design/nikes-new-distribution-center-
is-a-sustainable-biocycle_o

12. https://www.inditex.com/documents/10279/249245/Dossier_JGA_2019_E
N.pdf/1664de2f-ca77-3a40-2b78-cace74c06c82

13. https://www.business-standard.com/article/companies/how-flipkart-is-
automating-its-supply-chain-with-robotics-machine-learning-
119121101649_1.html

14. https://stories.flipkart.com/inside-indias-happiest-warehouse/

15.

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