1. Renewable Energy, Green Transportation and Logistics
Kuala Lumpur | October 11, 2011
Presented by:
Gopal R, Vice President
Transportation & Logistics Practice
Frost & Sullivan Asia Pacific

2. Agenda Green Supply Chain - A Perspective
Current Green Supply Chain Practices
What Can We Adopt?

3. Green Supply Chain - A Perspective

4. Is our current Supply Chain “Green”?
Transportation…?
Warehousing & Storage…?
None of the existing functions are entirely Green
Containerization, Consolidation, Break Bulk…?
Value Added Services…?

5. What Constitutes a “Green Supply Chain”?
Ways in which innovation in supply chain management and industrial purchasing may be considered in the context of the environment
RAW MATERIALS
PROCESS
OUTPUT
Transportation
Warehousing
Materials
Manufacturing
End Users
REVERSE LOGISTICS
Reclaim / Reuse / Improve

6. Key objectives of GREEN Supply Chain
To Reduce
Emission of green house gasses
Fuel and energy usage
Hazardous material usage
Natural resource usage
Scrap and material costs
To Increase
Usage of recycled material
Merging of logistics services
Avoid redundant functions
Toll Logistics' average annual CO2 reduction is ~ 10,000 MT
GM reduced its disposal costs by US$12 Million
Intel, Commonwealth Edison, GM, and 3M have improved their operating efficiency by
integrating environmental
considerations into key
materials management
decisions

7. Benefits of Green Practices in Supply Chain
The Benefits of Green Practices in Supply Chain
Business Angle
Social Angle
Environmental Angle
Improvement on healthier bottom line
Improvement of overall quality of life
Conservation of natural resources
Mitigation of Risk
Reduction of the spread of infectious diseases
Protection to eco-system
Enhancement on reputation and market value
Improvement on overall environmental implications
Improvement on air and water quality
Improvement in working environment
Reduction of Waste

8. Current Green Supply Chain Practices

9. What are some Current Green Practices?
I. Green Warehousing
II. Green Freight Transportation
III. Green Logistics Services

10. Warehouse Assets and Operations
Green Warehousing
Warehouse Assets and Operations
ASSETS
1. Equipment
Hydrogen-cell forklifts
Electric forklifts
Turbo ventilators
Skylights
2. Systems
Motion sensor lighting
Energy efficient lighting
Reflective roofing system
Heat recovery system
Paperless operations
OPERATIONS
1. Water Management
Recycling rain water
Reducing water usage
Reduction, control and treatment of surface runoff
Recovery of non-sewage water
2. Waste Management
Appropriate disposal of waste
Ensuring non contamination of water
Establish waste treatment & recycling

11. Green Freight Transportation
Transportation Assets and Operations
ASSETS
1. Carriers
Bio-fuel powered carriers
Light-weight material
Green engines
Hybrid trucks
Advanced transmission
Regenerative braking system
2. Use of Railways
Automatic shutdown device
Automated train parking system
Electric / hybrid locomotives
OPERATIONS
1. Operations
Driving style
Type of fuel (Bio, NGV)
Engine efficiency and emission improvement
Route planning and optimization
Maximizing trips through Milk Runs
Regular replacement of old fleet
Reducing / complying to load factor

12. Green Logistics Services
Reverse logistics
Paperless transaction
Vendor/ partners selection with emphasis on green practices
Green logistics consulting services
Technology driven functions
Recyclable packaging and labeling material
Effective inventory mgt. to reduce redundancies
Consolidation & break bulk to avoid transportation and warehousing needs
Reverse logistics providing customer solutions to reduce waste, transit times on devolutions and packaging (for example, use returnable packaging materials especially in retail market for perishable and non perishable products)
Embrace paperless transaction (example archiving of forwarding documentation)
Select vendor / partners which emphasize on green practices
Offer consulting services to customers on carbon efficiency issues. These include optimizing the carbon efficiency of logistics chains, developing carbon reduction plans, and implementing emissions reduction programs

13. What does the future hold?
None of the current green practices are industry wide practices in any given country
Regulations need to be in place to drive green practices
Where do we begin?

14. What Can We Adopt?

15. What can we adopt for Supply Chain?
Reduce use of Energy
Reduce use of hazardous materials
Green Practices
Solar
Energy
Recycle
Use alternative fuel
Reduce emission of green house gasses
Planting
Rain Harvest
Natural Light

16. What can we adopt for Transportation?
Use of Solar power for stations, bus stops
Green Practices
Solar
Energy
Bio-diesel / Electrified trains
Regenerative braking for trains
Green stations and depots
Rain Harvest
Saving Energy

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