Renewable Energy, Green Transportation and Logistics

Kuala Lumpur | October 11, 2011

Presented by:

Gopal R, Vice PresidentTransportation & Logistics Practice

Frost & Sullivan Asia Pacific

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Agenda

GREEN SUPPLY CHAIN - A PERSPECTIVE

CURRENT GREEN SUPPLY CHAIN PRACTICES

WHAT CAN WE ADOPT?

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GREEN SUPPLY CHAIN - A PERSPECTIVE

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Is our current Supply Chain “Green”?

Transportation…?

Value Added Services…?

Containerization, Consolidation, Break

Bulk…?

Warehousing & Storage…?

None of the existing

functions are entirely Green

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What Constitutes a “Green Supply Chain”?

Reclaim / Reuse / Improve

Transportation

REVERSE LOGISTICS

PROCESS OUTPUTRAW MATERIALS

Materials Manufacturing End Users

Warehousing

Ways in which innovation in supply chain management and industrial purchasing may be considered in the context of the environment

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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

Key objectives of GREEN Supply Chain

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 byintegrating environmental

considerations into keymaterials management

decisions

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Benefits of Green Practices in Supply Chain

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

Social Angle Environmental AngleBusiness Angle

Reduction of Waste

The Benefits of Green Practices in Supply Chain

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CURRENT GREEN SUPPLY CHAIN PRACTICES

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What are some Current Green Practices?

I. Green Warehousing

II. Green Freight Transportation

III. Green Logistics Services

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Green Warehousing

ASSETS1. 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

Warehouse Assets and 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

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Green Freight Transportation

ASSETS1. 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 Regenerative braking system

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

Transportation Assets and Operations

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Green Logistics Services

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

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None of the current green practices are industry wide practices in any given country

What does the future hold?

Regulations need to be in place to drive green practices

Where do we begin?

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WHAT CAN WE ADOPT?

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Green Practices

Solar Energy

Rain Harvest Natural Light

What can we adopt for Supply Chain?

Use alternative fuel

Recycle

Reduce use of Energy

Reduce use of hazardous materials

Reduce emission of green house gasses Planting

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What can we adopt for Transportation?

Bio-diesel / Electrified trains

Green stations and depots

Green Practices

Solar Energy

Rain Harvest Saving Energy

Use of Solar power for stations, bus stops

Regenerative braking for trains

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