Greener Systems=Greater Profits

Transcription

1 Greener Systems=Greater Profits Sheila M. Thomas Managing Director March 27, ACI-NA Air Cargo Conference - Los Angeles

2 Greener Systems=Greater Profits I II III IV Paradoxes of Green Logistics Influences & Objectives What Kind of Green? Examples 2

3 Paradoxes of Green Logistics Mode Reliability vs Energy Efficiency Centralization vs Decentralization 3

4 Mode Reliability vs Energy Efficiency Fundamental Features of contemporary logistics: Both favor use of the least energy efficient modes: Door-to-Door (DTD) Air Trucking Just-in-Time (JIT) Source: The Paradoxes of Green Logistics, Jean-Paul Rodrigue, Dept. of Economics & Geography. Hofstra University, Hempstead, New York, USA ( 4

5 Mode Reliability vs Energy Efficiency Source: ( 5

6 Mode Reliability vs Energy Efficiency Source: ( 6

7 Centralization vs Decentralization Case study: ITT Flygt Centralized system Decentralized system Average length of haul 2153 km 1512 km -30% Total tonne-kms (ann.) 2.9 million 2.2 million -24% CO2 emissions (ann.) tonnes 92.2 tonnes -30% Kohn 2005 Source: ( 7

8 Influences & Objectives Global Markets Online Retailing & Bidding Reverse Logistics: Retrieve & Recycle Environmental & Financial Win/Wins 8

9 Global Markets Source: ( 9

10 Online Retailing 8% of total retail sales 13x faster growth than conventional retail sales 20% of total forecast retail sales in the UK by 2015 Van Delivery of Products to Homes Reduces Last Mile Impacts Less CO2 More packaging waste Source: ( 10

11 Online Bidding Financial Benefits 10-30% savings for companies Faster than express delivery service Environmental Benefits Reduces paper, chemical and packing waste Eliminates express delivery vehicle CO2 emissions Source: Global4PL announces Green Supply Chain and Lower Cost program ( 11

12 Reverse Logistics: Retrieve & Recycle Operational Inefficiencies 51% of available weight capacity * 47% of available cube capacity * 74% of available deck capacity * 19% of miles run empty** Opportunities Combine delivery and collections 15-20% of Back Loads recyclables Reduce large freight vehicles Reduce vehicle trips Reduce CO2 * The Logistics Business Publication date: 01/04/2003 **Profit Through Partnership, Freight Best Practice, Department of Transport, September

13 Environmental & Financial Win/Win Programs Profits through Partnership Focus On Double Decks Alternate Fuel Vehicles Leaner is Greener 13

14 Profits through Partnership Partners in consortium bid for larger, higher value contracts Dedicated control centre with an independent facilitator with pool of fleet vehicles Regular meetings on performance and possible improvements Source: Profit Through Partnership, Freight Best Practice, Department of Transport, September

15 Focus On Double Decks Source: Reducing the Environmental Impact of Distribution, Freight Best Practice, Department of Transport, May

16 Alternate Fuel Vehicles CNG vehicles about 10p per mile cheaper than diesel At 250,000 miles per year fuel cost saving of 25,000 Significant environmental improvement - 42 tonnes of CO 2 emissions avoided - 98% reduction in particulate emissions - 86% reduction in nitrogen oxide emissions - Quieter vehicles Source: Reducing the Environmental Impact of Distribution, Freight Best Practice, Department of Transport, May

17 Leaner Distribution System Optimize vehicle routing Leaner is Greener Save time & Increase Profits Greener Environment (& $) Reduce miles traveled Flexible/Extended Schedule Maximize Container Capacity Reduce Miles Run Empty Alternate Fuel Vehicles Reduce fleet costs Reduce fleet size Reduce fuel costs Reduce CO2 Transco National Logistics, Birmingham in one year: Reduced trip miles by 66,000 Saved 123 tonnes of CO 2 Cost savings of 113,000 Source: Reducing the Environmental Impact of Distribution, Freight Best Practice, Department of Transport, May

18 What Kind of Green? Land Use & Access Planning Design/Construction (LEED Certification) Operations & Maintenance Practices Offsets (Zero foot print Seal) 18

19 Land Use Planning Joint Manufacturing/Logistic Zones Manufacturing/Logistics Partnerships Manufacturing Adjacent to Access Hubs Source: Shanghai-Hongqiao Airport Urban Land Use, Landrum & Brown

20 Access Planning Retail Adjacent to Regional Routes Optimize routes based on demand Maximize capacity before adding trips Broad schedules avoiding peak hour Source: University of Westminster review of urban freight consolidation for DfT ( 20

21 LEED Certification Leadership in Energy & Environmental Design (LEED) Green Building Rating System The nationally accepted benchmark for the design, construction and operation of high performance green buildings. LEED promotes sustainability in five key areas: sustainable site development water savings energy efficiency materials selection indoor environmental quality Source: ( ( 21

22 Design/Construction Innovation Landscape Warehouses & Green Roofs Reduce storm water runoff, heat islands, building energy demands, Create conditions for a longer-lasting roof system. * Source: Logistics Manager 1/2005 ( 22

23 Operations & Maintenance Practices Alternative Transportation Water Efficiency Energy & Atmosphere Indoor Environmental Quality Source: ( 23

24 Carbon Offsets (Zerofootprint( Zerofootprint Seal) Reforestation is most viable carbon offset Make transport impacts Carbon Neutral Zerofootprint Seal are credible "blue chip" carbon offsets, ensuring: Offsets are additional Proper risk managemment Verification by highest standards Offset project in a credible registry High standard of management Source: Zerofootprint ( 24

25 Examples ORD OMP Sustainable Design Manual/Projects Heathrow Airport Retail Consolidation Centre 25

26 ORD OMP Sustainable Design Manual Chicago Green initiatives, & OMP is setting the standard for U.S. airport construction Green Airplane Certification awards to design teams for sustainability achievement 26

27 ORD OMP Sustainable Design Projects Since October 2005: Demolition/Construction Waste Management: 30,000 tons/90% of demolition materials recycled or salvaged Green Roofs: Several green roofs, including a 6,500 sq ft green roof canopy Wetlands: Replacing 154 acres on-airport with 450 acres in NE Illinois- $44M Ultra Low Sulfur Diesel fuel: All construction equipment, over 3.2 million gallons Construction Equipment: Newest equipment, otherwise oxidation catalysts or particulate filters 27

28 Heathrow Airport Retail Consolidation Centre 100 retail units served 25,000 sq ft warehouse at Hatton Cross 3,500 sq ft chilled storage facility 5 tail-lift lift vehicles:(4 :(4-17 tonnes vans, tonnes) 20 staff: : operational and clerical 24/7 deliveries and collection of recyclables Before: 115 deliveries x3 drops x45 minutes = hours After Consolidation Center: 115 deliveries x12 minutes = 23 hours 28

29 Heathrow Airport Retail Consolidation Centre hours saved per week = 4,715 cost saving 35 gallons of diesel fuel are saved = 1OO a week Resulting in weekly environmental savings of: kg of Carbon Dioxide kg of Carbon Monoxide kg of NMVOC kg of Nitrogen Oxide kg of Particulates 95% On time delivery to retail outlets 90% Capacity of vehicle load used 75% Less airport delivery vehicles Annual saving in excess of 250,000, Annual reduction of tonnes of Carbon Dioxide 29

30 Thank You Sheila M. Thomas, Managing Director Landrum & Brown Worldwide Services,

31 Sources and Additional Information Source: The Paradoxes of Green Logistics, Jean-Paul Rodrigue, Dept. of Economics & Geography. Hofstra University, Hempstead, New York, USA ( Source: ( Source: ( Source: Global4PL announces Green Supply Chain and Lower Cost program ( Source: The Logistics Business Publication date: 01/04/2003 Source: Profit Through Partnership, Freight Best Practice, Department of Transport, September 2006 Source: Reducing the Environmental Impact of Distribution, Freight Best Practice, Department of Transport, May 2007 Source: University of Westminster review of urban freight consolidation for DfT ( Source: ( ( Source: Logistics Manager 1/2005 ( Source: ( Source: Zerofootprint ( O Hare Modernization Program SUSTAINABLE DESIGN MANUAL, December City of Chicago GOOD PRACTICE CASE STUDY 402: Heathrow Airport Retail Consolidation Centre. BAA PLC. CROWN MAY Sheila M. Thomas, Managing Director Landrum & Brown Worldwide Services sthomas@landrum-brown.com