E-Logistics and the Natural Environment

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E-Logistics and the Natural Environment

• Joseph Sarkis
• Clark University

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Outline of Talk

• Introduction on why this topic is of interest
• Background on Logistics and E-Logistics
• Forward E-Logistics and the Natural Environment
• Reverse E-Logistics and the Natural Environment
• Industry, Govt, Academic Issues

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Introduction

• Billions will be spent on Internet Based
  Logistics Systems.
• B2C market 7.7 28 Billion (98-00)
• B2B market 2.1 81 Billion (01-05)
• If growth is to be maintained (as we now know)
  efficient logistics systems have to be in place.
• Investments in e-logistics will also be great,
  question is What are the environmental
  implications?

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Energy
Energy
Energy
Closed-Loop Manufacturing, Demanufacturing, Source
Reduction
Disposal
Location Analysis, Inventory Management, Warehousi
ng Transportation Packaging
Internal Transportation, Materials Movement
External Transportation
Raw and Virgin Material
Inventory Management
Selection
Fabrication
Vendors
Storage
New Components and Parts
Storage
Distribution, Forward Logistics
USE
Assembly
Recycled, Reused Material and Parts
Purchasing, Materials Management, Inbound
Logistics
Outbound Logistics
Production
Energy
Product/Process Design
Waste
Waste
Waste
Marketing
Engineering
Waste
Figure 1 Materials, Product and Information
Flow. Forward and Reverse Logistics, Adapted
From Sarkis, 2001.
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Background

• E-Logistics Technology (examples)

The personal computer Electronic data interchange
(EDI) among carriers, shippers and
customers Barcoding and scanning Advance ship
notices (ASNs) Shipment and package tracking
systems Satellite global positioning systems
(GPS) and geographic information systems (GIS)
The World Wide Web The Internet, intranets and
extranets Web-enabled relational databases, data
warehouses and data marts Decision support
systems Electronic signature technology Wireless
technology Enterprise resource planning systems
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Forward E-Logistics and the Natural Environment

• Procurement
• Email, EDI and XML linkages aiding procurement
• Savings Ideally reduce all paper driven
  transactions (.25 drop in net greenhouse gas
  production (Romm, 2000).
• Costs (general issue with all technology)
• energy costs because of technology (Mills 2000,
  2001).
• Electronic Hardware - a growing waste stream,
  millions of computers, CRTs, etc. into landfills.

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Forward E-Logistics and the Natural Environment

• Procurement
• Additional Benefits Green Purchasing is easier.
• European Partners for the Environment has the
  European Green Purchasing Network - www.epe.be.
• An example site that has a database of green
  purchasing depending on product type, material,
  other criteria, for green purchasing
  www.econexus.net
• A meta-site that gives a number of sites for
  green purchasing, especially in North America is
  located at www.nerc.gpn/gpn
• The Japanese Green Purchasing Network is located
  at www.wnn.or.jp/wnn-eco/gpne

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Forward E-Logistics and the Natural Environment

• Inventory and Warehousing
• Postponement less inventory due to quick speed
  of information (JIT)
• Aggregation and centralization of
  warehousing/inventory
• do not need to be next to customer
• less waste, energy to run additional locations
• - additional transportation costs
• Information integration substitution of durable
  goods with information better efficiency less
  bullwhip effect.

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Forward E-Logistics and the Natural Environment

• Transportation and Delivery Management
• Transportation exchanges allow for more efficient
  carrier management
• Transportation costs may increase due to
  centralized warehousing
• Services and electronic (software/music) goods
  are easily delivered.
• Packaging and Order Management
• Marketing with fancy packaging less necessary
• Have more flexibility in packaging

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Reverse E-Logistics and the Natural Environment

• By definition is an environmentally conscious
  practice, bringing back disposed products,
  components, waste into system.
• Returns due to warranties, customer service,
  competitiveness issues are all increasing reverse
  logistics.
• Major RL activities gatekeeping, collection,
  sortation and disposition

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Reverse E-Logistics and the Natural Environment

• Challenges of E-logistics
• E-commerce has higher return rates.
• Culture of focus on sales not returns service
• Volumes of returns are unknown
• Lack of retailing experience
• Variety of sources of returns manufacturers
  deliver directly
• Some responses
• Return Stores subcontracted
• Third-party Reverse Logistics providers (but
  need to rethink business in internet situation,
  e.g. smaller orders, pickups).

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Reverse E-Logistics and the Natural Environment

• Environmental Issues
• Extending the life of the product - Secondary
  market development.
• C2C Ebay
• Materials Exchanges quick and easy information
• Brokering Firms inventory excess find a buyer
• Excess Inventory Obsolete equipment markets
  direct from Manufacturer
• Transportation issues, energy usage, LCA issues

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Industry, Govt, Academic Issues

• Industry
• Adoption
• Technology development
• Investment and integration
• Adoption and Development of Processes

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Industry, Govt, Academic Issues

• Government
• Awareness Development
• Standards setting
• Regulatory oversight
• Intergovernmental relationships
• Infrastructural support and development

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Industry, Govt, Academic Issues

• Academia
• Basic Research and Development
• Implications of Technology on the Environment
• Determining what works and what doesnt
• Educating and Publicizing
• Case Studies
• Course Integration
• Project Development
• Speakers
• Field tours
• Sharing of ideas Simulations - Games