EVALUATING GREEN SUPPLY CHAIN – ROLE OF

TRANSPORT AND LOW-CARBON ECONOMY

This presentation is as part of project financed by National Science Centre granted on the basis of decision

DEC-2013/09/B/HS4/02707

Blanka Tundys, PhD.Department of Logistics,

Faculty of Management and Economics of Services University of Szczecin

Poland 17th International Conference on Transport Science

21.-22. May 2015Congress Centre Bernardin

Portorož, Slovenia

Construction and design of Green supply chain based on the environmental aspects

Transport being an integral part of the logistics process has negatively affects on the

environment.

Therefore, it is essential to create, build and evaluate of green supply chains,

taking into account the objectives of low-carbon economy.

Development and evaluation of green supply chain is

dependent on the implementation of the

principles of sustainable development in the transport sector and supporting of low-

carbon economy.

The application of modern management tools must be linked to organizational activities, as well

as systematic approach and implementation of innovation (including eco-innovation).

It should be not forgotten - social acceptance, which can become the

basis of changes in the supply chain.

Green supply chain is a strategy, that requires

and redesign of processes, with

particular emphasis on environmental

protection.

Directions for the development of green supply chains is determined and assumpted for supported by filling of rules of low-carbon

economy. Green supply chain includes not only the implementation of the concept of

low emissions and energy consumption rather in the production, storage and

transport, but also refers to the waste management, recycling and

the introduction of green management

One of the measurable effects of economics transformations will be reducing greenhouse gas

emissions and other substances. Way to achieve this is to introduce a low-carbon economy.

It is to ensure economic, social and environmental (according to the principle of

sustainable development) resulting from action, which aims are reduce emissions, including

growth of performance through an increase in innovation and implementation of new

technologies, reduction of energy consumption, create new jobs and, consequently supporting of facilitating the growth of competitiveness of the

economy.

two areas have a large impact on the introduction of low-carbon economy and at the same time are an important element of the operation and evaluation of green supply

chain. - Transport and energy.

Both areas are part of processes at each stage of green supply chain.

http://australianmuseum.net.au/image/world-greenhouse-gas-emissions-image

The EU economy should be based on three pillars: •knowledge and innovation (smart growth), • the effective use of available resources (sustainable development) •a high level of employment and social cohesion (the development of inclusion).

Documents ROADMAP 2050 or White Paper 2011

The plan for emissions and assumptions of low-carbon

economy is an ambitious and predicts that by 2050 will be achieved target of reducing

emissions by more than 80%. In Europe's energy production

will have to be characterized by an almost total lack of carbon

dioxide emissions. http://www.statetransit.info/bus-fleet/buses-and-

the-environment/fact-sheet

Expected results for the low-carbon economy in Europe (2050)

Decarbonisation of the energy system.

The crucial importance of energy efficiency and renewable energy

Investments - started at an early stage are less expensive

Control price increases.

Economies of scale are necessary.

http://knowledge.allianz.com/environment/climate_change/?2164/Challenges-of-a-low-carbon-economy

Scenarios of low-carbon economy for Europe (2050)

High energy efficiency

Diverse power generation technologies

Significant use of renewable energy sources

Delayed implementation of CCS

Low use of nuclear energy

Reducing of carbon emissions is associated with the use of technology and with higher production costs, which typically require higher

investment. Decarbonisation policy leads to changes in the structure of the technology and fuel energy production - in the direction of less-

emission technologies, causing an increase in technical costs of energy production. Analyses indicate an increase in energy prices, but

it is worth noting here also economic benefits.

Another element supporting low-carbon economy assumptions are actions taken with respect to mitigating the negative impacts of transport. The assumptions are associated with the EU's strategic document. (the White

Paper 2011).

http://www.thinkvertical.co.uk/

Goals for a competitive and resource efficient transport system: benchmarks for achieving the 60% GHG emission

reduction target

Developing and deploying new and sustainable

fuels and propulsion systems

Increasing the efficiency of

transport and of infrastructure use with information

systems and market-based

incentives

Optimizing the performance of

multimodal logistic chains,

including by making greater

use of more energy-efficient

modes 

http://epthinktank.eu/2014/07/31/eco-efficient-transport-and-modern-

energy-solutions/

http://epthinktank.eu/2014/07/31/eco-efficient-transport-and-modern-

energy-solutions/http://www.apptricity.com/warning-green-supply-chain-innovation-is-closer-than-it-

appears/

GREEN SUPPLY CHAINgreening of the supply chain is the

process of incorporating environmental criteria or concerns

into organizational purchasing decisions and long-term relationships

with suppliers.

The green supply chain is“a managerial approach that seeks to

minimize a product or service’s environmental and social impacts or

ecological footprint”.

http://www.solarfeeds.com/top-5-things-needed-for-a-

sustainable-supply-chain/

Three approaches to GSC: environment, strategy, and

logistics

Planning

Choosing of strategy

ImplementationMapping/

controllingEvaluation/

auditingDevelopin

gImprovment Correctiongree

n

Green supply chain

Reconstruction

yesno

Algorithm for assessing the implementation of the principles of green supply chain

The evaluation process should be continuous and constant, because only then it can make improvements and eliminate errors. The good way is prevention. The procedure must be presented by using appropriate tools, techniques and methods that will provide complete picture of the situation, identify the versatility and the ability to customize the right tools to specific situations and supply chains

The process of assessing supply chains need to consider a few important items and perform specific procedures: (1) choosing a product or a chain, (2) make a mapping of processes, (3) identify existing bottlenecks, (4) propose and develop alternative solutions, (5) choose the most optimal solution, (6) implement of new solutions, and after a certain time

to make another review of repeating the procedure.

http://www.supplychainschool.org.au

For the evaluation of green supply chain, it can be can use multiple tools. The more comprehensive solution, the fewer items will be omitted. Generally, it should be indicate used tools and instruments of: management, economic, legal and administrative (organizational), as well as activities within the social aspect, of which one of the most important roles to play in each category have environmental tools.

Most of them are linked and coming with the interaction with others within the close-

loop.

http://www.thefuturebuild.com/our-services/sustainability-consultancy

http://www.energenz.com/themes/circular-economy/

• In the Green Supply Chain is important the attempt to measure, analyze and improve performance among various links to ensure, that these companies are operating in environmentally friendly manner. • It is important to establish green metrics and the corresponding elements, such as: carbon footprint analysis, emission from raw material sourcing, emission from inbound logistics, emission from outbound logistics, and emission from manufacturing. It seems reasonable to make an evaluation of green supply chain using the best practices. It should also be pointed out that an important role is played by the flow of information and suggestions for implementation of alternatives. However to implementation, alternatives are only after the evaluation and auditing of the existing situation possible.

http://www.green2biz.com/

global-challenge/carbon-footprint/

processes

elements

measurment

Examples tools

EVALUATION of Green Supply Chain

areas social economic management

enviorenmental

administrative legal

procurment

Production/manufacturi

ngdistribution recycling transport inventory

KPI (Key Performance Index), green procurement, Packaging Assessments (Packaging Environmental Assessment Tool – PEAT), Life Cycle Analysis (LCA), Life Cycle Costing (LCC), End of life Inventory Management, EU Directives and Guidelines, Recommendations, Accreditations, Certifications (ISO), Carbon Assessments and Footprinting, Sustainability and Recycling, Green vendor selection, Engaging with Suppliers on Sustainability (TESS), Environmentally Responsible Product Assessment(ERPA), Environmental Quality Function Deployment (EQFD), , Material Flow Analysis(MFA), direct material input(DMI), total material consumption(TMC), physical trade balance(PTB), , total material requirement(TMR), total domestic output(TDO), Domestic Material Consumption)(DMC), , domestic extraction used(DEU) , ESCOR, Sustainable Balanced scorecard, IDEFO, VSM Value stream mapping

Fuel vehicles, fuel cost, building energy use, carbon management: carbon intensity, trading, transparency, clean technology investment, patents, corporate rating, employee communication, eco-packing, energy cost, recycling, Number of purchase of hybrids, electric cars, flex-fuel vehicles, average energy use per square foot of office space, emission of greenhouse gases per unit of GDP, reduce of greenhouse gases, number of eco-investment, eco-innovation, eco-patents, remanufacturing, % of returned products, the amount of energy cost, carbon assessment, footprint (carbon, water), rules of vendor selection, % of firms with EMAS or ISO14001, % of firms with environmental mission statements, ‘Green Tax’ as a percentage of government budget , Financial support for eco-innovation from public programmers , demand for eco-innovative products, waste management costs (landfill tariff etc), executive opinion on environmental regulation, ratio of eco-start-ups to incumbents in the market, seed and start-up venture capital for eco-innovative firms (investment per 1000 GDP), material productivity of eco innovative firms, share of eco-innovative firms as a percentage of all firms, environmental rules of suppliers selections, cooperation's form, emission from in/outbound logistics, emission from raw material sourcing , compliance cost, non- compliance cost, % of orders receives with eco-packing, regulations, certifications,

• The assumptions of the EU White Paper for low carbon economy are very ambitious; in part probably they are not to feasible to realization. However, the same assumptions could be some kind of guideline for implementation.

• Execution of the tasks associated with the use of appropriate tools and instruments (eg. sustainable transport) can be used to assess the green supply chain. Similarly situation is with the assumptions of a low carbon economy.

• The assumptions are not fully possible to realizations, but as in the case of transport, tools for the implementation of a low-carbon economy can be one of the elements of the assessment of green supply chain.

CONCLUSION

https://valuestream2009.wordpress.com/tag/intel/

• in the basic model were presented and highlighted tools, whichs, which can be used for evaluation of green supply chain.

• using of this model it can help to promote this kind of ideas.

• clear relationship and impact to the transport on the functioning of the chain.

The use of modern environmental tools leads to a reduction of negative impacts on the environment by

transport.

This is also useful in the evaluation of the supply chain.

CONCLUSION

https://valuestream2009.wordpress.com/tag/intel/

Thank you for your Attention

Blanka Tundys, PhD.Department of Logistics,Faculty of Management and Economics of Services University of SzczecinPoland Email: blanka.tundys@wzieu.pl