International Green Legislation and Reverse Log

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L O G I S T I C S A N D E N V I R O N M E N T A L B E S T

P R A C T I C E

International Green Legislation

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Green Logistics

Refers to understanding and minimizing the ecologicalimpact of logistics

The main objective of Green logistics is to coordinate theactivities within a supply chain in such a way that

beneficiary needs are met at "least cost" to theenvironment

Green logistics activities include: measuring the environmental impact of particular modes of

transport

ISO 14000 certification

reducing energy usage of logistics activities and reducing usage ofmaterials.

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Logistics and Environmental Best Practice

Improve your business image

Make financial savings

Comply with vehicle emissions legislation

Employee benefits

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Reduce the environmental impact of yourbusiness transport

Logistics can be important to reducing environmentalimpact. Freight transport is a key part of logistics andwhether your business is moving its own or anotherorganization's goods, considering how to improve yoursystems may deliver business benefits, as well as reducing

your impact on the environment: Have one central distribution center

Transport goods by rail or water

Improve fuel management

Aim to use local suppliers Ship products together rather in small batches

Using alternative fuel vehicles

Building facilities and storage environmentally friendly

Promote recycling and re use programs

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Rio Earth Summit (1992):

172 governments participated, with 108 sending their heads ofstate or government. Some 2,400 (NGOs) attended, with17,000 people at the parallel NGO "Global Forum", who hadConsultative Status.

The issues addressed included:

systematic scrutiny of patterns of production particularlythe production of toxic components, such as lead in gasoline,or poisonous waste including radioactive chemicals

alternative sources of energy to replace the use offossil fuelswhich are linked to global climate change

new reliance on public transportation systems in order toreduce vehicle emissions, congestion in cities and the healthproblems caused by polluted air and smog

the growing scarcity ofwater

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Kyoto Protocol

The Kyoto Protocol was adopted in Kyoto, Japan, on11 December 1997 and entered into force on 16February 2005.

The Kyoto Protocol is an international agreementlinked to the United Nations Framework Conventionon Climate Change.

The major feature of the Kyoto Protocol is that it sets

binding targets for 37 industrialized countries andthe European community for reducing greenhousegas emissions .

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Copenhaguen Summit

Copenhagen Summit was held in Copenhagen, Denmark, between 7December and 18 December 2009

The Copenhagen Accord was drafted by the US, China, India, Brazil andSouth Africa on December 18, and judged a "meaningful agreement" bythe United States government

The document recognized that climate change is one of the greatestchallenges of the present day and that actions should be taken to keep anytemperature increases to below 2C. The document is not legally bindingand does not contain any legally binding commitments for reducing CO2

emissions.

The Copenhagen Accord recognizes the scientific case for keepingtemperature rises below 2C, but does not contain commitments for reducedemissions that would be necessary to achieve that aim.

The Accord also favors developed countries' paying developing countriesto reduce emissions from deforestation and degradation

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Environmental Checklist

What environmental risks do your firms activities pose? Do your processes and materials pose any danger? Do you know what impact do your products (including their disposal) and services have

on the environment? Do you know what type and quantity of waste you produce? Are there hidden benefits (for ex more production efficiency) or even straight business

opportunities (for ex commercial utilization of waste) from adapting alternative methodsof controlling or eliminating the pollution risk?

Do you know how it is disposed and what the cost is? Is your firm operating the most cost effective method of controlling or eliminating

pollution risk? Can you meet the consumer demand for environmentally friendly products? Are you aware of existing environmental standard and legislation in the country and

overseas? Is senior management actively involved in ensuring that proper weight is given to

environmental considerations throughout the firm? Could you improve your environmental image to the public and your employees? Are you highlighting your environmental performance?

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Reverse Logistics

Relatively new area

Reverse logistics is the process of moving goods fromtheir typical final destination for the purpose of

capturing value, or proper disposal. The reverse logistics process can be broken into two

general areas, depending on whether the reverse flowconsists primarily of products, or primarily of

packaging.

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Reverse Logistics

Typical reverse logistics activities would be the processesa company uses to collect used, damaged, unwanted, oroutdated products, as well as packaging and shippingmaterials from the end-user or the reseller.

Reverse logistics also includes processing returnedmerchandise due to damage, seasonal inventory, restock,salvage, recalls, and excess inventory. It also includesrecycling programs, hazardous material programs,obsolete equipment disposition, and asset recovery.

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Common Reverse Logistics Activities

Materials Return to supplier for a

refund

Resell

Sell via Outlet

Salvage

Recondition

Refurbish

Remanufacture

Reclaim Materials

Recycle

Landfill

Packaging

Reuse

Refurbish

Reclaim Materials Recycle

Salvage

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Reverse Logistics

2 paradigms for a reverse logistics system

Decentralized ( decision regarding the disposition of products are madeat retail locations)

Centralized system (all products for the reverse logistics pipeline arebrought to a central facility, sorted, and sent out to their ultimatedestination)

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Importance of Reverse Logistics

Johnson & Johnson

Good corporte citizenship Ex Nike and Kenneth Cole

keeping consumer product fresh and interesting Helps keep customers loyalty

Legal Disposal Issues

Recapture Value and Recover Assets

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Barriers to Reverse Logistics

Barrier Percentage

Importance of Reverse Log compared toother issues

39.2

Company Policies 35

Lack of systems 34.3

Management inattention 26.8

Financial resources 19

Personnel resources 19

etc

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Reverse Logistics Best Practices

Have a robust gate-keeping function that gathersinformation and applies rules-based processing asearly as possible in the lifecycle of a return

Share captured information on returns with otherparts of the organization, especially engineering anddesign

Automate data capture and processes wherever

possible, including warranty validation and tracking Establish clear and uniform policies and procedures

to govern the disposition of returns

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Reverse Logistics Best Practice

Increase customer support aimed at stopping returnsbefore they happen

Make it easy and convenient for customers to return

products when necessary

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B E N C H M A R K I N G

E D I

B A R C O D E S

R F I D

Information and Communication

Technology in the Supply Chain

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Benchmarking

Definition: is the process of continuously measuring and comparingones business performance against comparable processes in leadingorganizations to obtain information that will help the organizationidentify and implement improvements

Objectives WithBenchmarking Without Benchmarking

Reactive Proactive

Industries Best Practices Few solutions Many options / superior performance

Define cust requirements Based on history Based on market reality

Establish effective goals Lack external focus Credible, unarguable

Become competitive Internally Focused Understand competition and gain ideas from provenpractices

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Steps to conduct a Benchmarking exercise

Step one: Senior management committment

Step two: Set objectives

Step three: Choose Benchmarking partners Internal colleagues Easiest as the info should be available and accurate

Industry Benchmarking - Difficult as competitors are not likely to engage in anexercise that may lead to a loss of competitive advantage ( but some organizations arevery open with their info so it is not impossible). Finally trade associations do produceindustry statistics but they are likely to be non-specific and based on averages.

Non competitive benchmarking: This involves benchmarking against other companiesin different industries. This has the advantage of excluding market competition fromthe process of comparison. But it does make it more difficult to identify specific areasof comparison between non competitive benchmarking partners.

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Steps to conduct a Benchmarking exercise

Step four: Get acquainted with your partner ( tours,inspections, meetings)

Step Five: Analyze data

Step Six: Continue the processAllocate staff on a permanent basis to engage in continuous

benchmarking activities

Use benchmarking as part of continuous improvement

culture Create a computer data base of benchmarking info

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EDI: Electronic Data Interchange

Definition: computer to computer exchange ofstructured data for automatic processing. EDI isused by supply chain partners to exchange essentialinfo necessary for the effective running of their

business. These links are usually set up betweenorganizations that have a long term tradingrelationship. EDI is used to send invoices, bills of

lading, confirmation of dispatch, shipping detailsand any info that the linked organizations choose toexchange

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EDI

Info needs to be entered on to the computer system onlyonce

Documents are transmitted from computer to computerin a standard electronic format

Information is processed without human intervention Speed of transactions

Reduced cost and error rates

http://www.youtube.com/watch?v=vPPI70LckP4&featur

e=related http://www.youtube.com/watch?v=8RnV79RIuMY&feat

ure=related

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Bar Codes

A bar code is therepresentation of a numberor code in a form suitablefor reading by machines.Bar codes are widely usedthroughout the supply

chain to identify and trackgoods at all stages in theprocess.

Shows certain data oncertain products

http://www.youtube.com/watch?v=u_IWym6aTRA&feature=related

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RFID (Radio Frequency Identification)

RFID is a rapidly developing technology that allowsobjects to be tagged with a device that contains a memorychip. The chip has a read and write quality that iscurrently executed using radiofrequency.

For ex a pallet of goods can have a RFID tag attached

that contains a lot of info regarding that specific pallet(product details, number of cartons, origin/destinationof goods, location of the warehouse etc) http://www.youtube.com/watch?v=Xf2aiOaCq-

c&NR=1&feature=fvwp

etiquetas que hablan

http://www.youtube.com/watch?v=Dac6HLUf9HE&NR=1 EPC - RFID Cdigo Electrnico de Producto