Green Logistics

Green

Logistics

i

ii

THIS PAGE IS INTENTIONALLY LEFT BLANK

Green

Logistics

Improving the

environmental

sustainability of

logistics

Edited by Alan McKinnon,

Michael Browne, Maja

Piecyk and Anthony

Whiteing

Third Edition

iii

First published in Great Britain and the United States in 2010 by Kogan Page Limited

Second edition 2012

Third edition 2015

Apart from any fair dealing for the purposes of research or private study, or criticism or review, as

permitted under the Copyright, Designs and Patents Act 1988, this publication may only be repro￾duced, stored or transmitted, in any form or by any means, with the prior permission in writing of

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to the publishers at the undermentioned addresses:

2nd Floor, 45 Gee Street 1518 Walnut street, suite 1100 4737/23 Ansari Road

London EC1V 3RS Philadelphia PA 19102 Daryaganj

United Kingdom USA New Delhi 110002

www.koganpage.com India

© Alan McKinnon, Michael Browne, Anthony Whiteing and Sharon Cullinane, 2010

© Alan McKinnon, Michael Browne and Anthony Whiteing, 2012

© Alan McKinnon, Michael Browne, Anthony Whiteing and Maja Piecyk, 2015

The right of Alan McKinnon, Michael Browne, Anthony Whiteing and Maja Piecyk to be identified

as the authors of this work has been asserted by them in accordance with the Copyright, Designs

and Patents Act 1988.

ISBN 978 0 7494 7185 9

E-ISBN 978 0 7494 7186 6

British Library Cataloguing-in-Publication Data

A CIP record for this book is available from the British Library.

Library of Congress Cataloging-in-Publication Data

Green logistics : improving the environmental sustainability of logistics / [edited by] Alan

McKinnon, Michael Browne, Anthony Whiteing, Maja Piecyk. – Third edition.

pages cm

ISBN 978-0-7494-7185-9 – ISBN 978-0-7494-7186-6 (ebk) 1. Business logistics–Environmental

aspects. I. McKinnon, Alan C., 1953-

HD38.5.G696 2015

658.7028’6–dc23

2014046779

Typeset by Graphicraft Limited, Hong Kong

Printed and bound in India by Replika Press Pvt Ltd

Publisher’s note

Every possible effort has been made to ensure that the information contained in this book

is accurate at the time of going to press, and the publishers and authors cannot accept re￾sponsibility for any errors or omissions, however caused. No responsibility for loss or dam￾age occasioned to any person acting, or refraining from action, as a result of the material in

this publication can be accepted by the editors, the publisher or any of the authors.

iv

Contents

List of Figures xi

List of Tables xiv

Contributor biographies xvi

Part One  Assessing the environmental effects of

logistics 1

01 Environmental sustainability: A new priority for logistics

managers 3

Alan McKinnon

Introduction 3

A brief history of green logistics research 5

Green logistics: Rhetoric and reality 17

Future scenarios 20

A model for green logistics research 21

Outline of the book 24

References 26

02 Assessing the external impacts of freight transport 32

Maja Piecyk, Sharon Cullinane and Julia Edwards

Introduction 32

External impacts 33

Environmental standards 45

Measuring the environmental impact of freight transport 48

References 51

03 Carbon auditing of companies, supply chains and products 55

Maja Piecyk

Introduction 55

Guidelines for carbon footprinting 57

The carbon footprinting process 59

Success factors in carbon footprinting 66

Case study: Carbon auditing of road freight transport operations in

the UK 66

Next steps 74

Conclusions 76

Note 77

References 77

Contents

Contents v

List of Figures xi

List of Tables xiv

Contributor Biographies xvi

Part One 1

Assessing the environmental effects of logistics 1

01 3

Environmental sustainability 3

Introduction 3

A brief history of green logistics research 5

Green logistics: Rhetoric and reality 17

Future scenarios 20

A model for green logistics research 21

Outline of the book 24

References 26

02 32

Assessing the external impacts of freight transport 32

Introduction 32

External impacts 33

Environmental standards 45

Measuring the environmental impact of freight transport 48

References 51

03 55

Carbon auditing of companies, supply chains and products 55

Introduction 55

Guidelines for carbon footprinting 57

The carbon footprinting process 59

Success factors in carbon footprinting 66

Case study: Carbon auditing of road freight transport operations in the UK 66

Next steps 74

Conclusions 76

Note 77

References 77

04 80

Evaluating and internalizing the environmental costs of logistics 80

Introduction 80

Arguments for and against the internalization of environmental costs 82

Monetary valuation of environmental costs 85

Goods vehicle external costs: Case studies 92

Conclusions 99

Note 100

References 100

part Two 105

Strategic perspective 105

05 107

Green logistics, sustainable development and corporate social responsibility 107

Introduction 107

Sustainable development and sustainable distribution 108

Corporate social responsibility (CSR) 111

Stakeholders in CSR 113

CSR reporting standards 115

CSR and the logistics function 116

Case Study: CSR reporting in the logistics industry 117

Conclusions 120

Notes 120

References 121

06 123

Restructuring road freight networks within supply chains 123

Introduction 123

Traditional network design 123

Green network design 127

Uncertainty in transport and supply chains 133

Uncertainty mitigation approaches in road freight transport networks 136

Gaps in our understanding and priorities for research 141

Consequences and conclusions 143

References 144

07 148

Transferring freight to ‘greener’ transport modes 148

Background 148

Characteristics of the main freight transport modes 150

Environmental impacts of the main freight transport modes 153

Case study: Container train load factors 154

The policy framework 156

Initiatives to promote freight modal shift for environmental benefit 157

Good practice in achieving modal shift to rail and water 161

Conclusions 163

References 163

08 165

Development of greener vehicles, aircraft and ships 165

Introduction 165

Road freight 166

Rail freight 176

Air freight 179

Shipping 183

Conclusions 188

Notes 188

References 189

09 194

Reducing the environmental impact of warehousing 194

Introduction 194

Scale of the environmental impact 195

Increasing resource intensity 198

Framework for assessing the environmental impact of warehouses 199

Ways of reducing the environmental impact 200

Conclusion 221

References 223

Part Three 227

Operational perspective 227

10 229

Optimizing the routeing of vehicles 229

Introduction 229

Vehicle routeing problems 230

Problem varieties 231

Environmental impact 234

Conclusions 238

References 239

11 243

Opportunities for improving vehicle utilization 243

Introduction 243

Measuring vehicle utilization 244

Factors affecting the utilization of truck capacity 247

Conclusions 257

References 258

12 262

Increasing fuel efficiency in the road freight sector 262

Introduction 262

Fuel efficiency of new trucks 263

Vehicle design: Aerodynamic profiling 264

Reducing the vehicle tare weight 266

Vehicle purchase decision 267

Vehicle maintenance 268

Increasing the fuel efficiency of trucking operations 269

Benchmarking the fuel efficiency of trucks 270

More fuel-efficient driving 272

Fleet management 273

Conclusions 275

References 275

13 278

Alternative fuels and freight vehicles 278

Introduction 278

State of development of alternative fuels for freight vehicles 279

Current use of alternative fuels for freight vehicles 283

Costs and benefits 285

Growth potential 287

References 288

Part Four 291

Key issues 291

14 293

Sustainability strategies for city logistics 293

Introduction 293

Urban freight research and policy making294

Efficiency problems in urban freight transport 296

Urban freight transport initiatives 299

Urban consolidation centres 303

Collaboration between the public and private sectors 307

Environmental zones 310

Conclusions 315

Notes 315

References 316

15 320

E-business, e-logistics and the environment 320

Introduction 320

Business-to-business (B2B) 321

Business-to-consumer (B2C) 326

References 335

16 338

Reverse logistics for the management of waste 338

Introduction 338

Waste management in the context of reverse logistics 339

The impact of waste treatment legislation342

Reuse, refurbishment markets and take-back schemes 346

Managing waste as part of a sustainable reverse process 348

Conclusions 352

References 354

17 358

The food miles debate 358

Introduction 358

Transport and GHGs: Is further worse? 359

Transport, the second-order impacts and the implications for GHGs 364

Local vs global and the self-sufficiency question 366

Notes 368

References 368

Part Five 373

Implications for public policy and the future of supply chains 373

18 375

The role of government in promoting green logistics 375

Introduction 375

Objectives of public policy on sustainable logistics 378

Policy measures 378

Reducing freight transport intensity 381

Shifting freight to greener transport modes 383

Improving vehicle utilization 387

Increasing energy efficiency 389

Switching to less polluting energy sources390

Government-supported advisory, best practice and accreditation programmes 392

Conclusions 393

Note 394

References 394

Postscript 1 397

1 Introduction 397

2 System specification 397

3 Applications 398

4 Operational feasibility 398

5 Environmental impact 400

References 402

Postscript 2 403

References 406

Postscript 3 407

Notes 410

References 410

Postscript 411

Note 414

References 414

Index 415

v

vi Contents

04 Evaluating and internalizing the environmental costs of

logistics 80

Maja Piecyk, Alan McKinnon and Julian Allen

Introduction 80

Arguments for and against the internalization of environmental

costs 82

Monetary valuation of environmental costs 85

Goods vehicle external costs: Case studies 92

Conclusions 99

Note 100

References 100

Part Two Strategic perspective 105

05 Green logistics, sustainable development and corporate

social responsibility 107

Maja Piecyk and Maria Björklund

Introduction 107

Sustainable development and sustainable distribution 108

Corporate social responsibility (CSR) 111

Stakeholders in CSR 113

CSR reporting standards 115

CSR and the logistics function 116

Case study: CSR reporting in the logistics industry 117

Conclusions 120

Notes 120

References 121

06 Restructuring road freight networks within supply

chains 123

Irina Harris, Vasco Sanchez-Rodrigues, Mohamed Naim and Christine

Mumford

Introduction 123

Traditional network design 123

Green network design 127

Uncertainty in transport and supply chains 133

Uncertainty mitigation approaches in road freight transport

networks 136

Gaps in our understanding and priorities for research 141

Consequences and conclusions 143

References 144

Contents vii

07 Transferring freight to ‘greener’ transport modes 148

Allan Woodburn and Anthony Whiteing

Background 148

Characteristics of the main freight transport modes 150

Environmental impacts of the main freight transport modes 153

Case study: Container train load factors 154

The policy framework 156

Initiatives to promote freight modal shift for environmental

benefit 157

Good practice in achieving modal shift to rail and water 161

Conclusions 163

References 163

08 Development of greener vehicles, aircraft and ships 165

Alan McKinnon, Julian Allen and Allan Woodburn

Introduction 165

Road freight 166

Rail freight 176

Air freight 179

Shipping 183

Conclusions 188

Notes 188

References 189

09 Reducing the environmental impact of warehousing 194

Peter Baker and Clive Marchant

Introduction 194

Scale of the environmental impact 195

Increasing resource intensity 198

Framework for assessing the environmental impact of

warehouses 199

Ways of reducing the environmental impact 200

Conclusion 221

References 223

Part Three Operational perspective 227

10 Optimizing the routeing of vehicles 229

Richard Eglese and Daniel Black

Introduction 229

Vehicle routeing problems 230

viii Contents

Problem varieties 231

Environmental impact 234

Conclusions 238

References 239

11 Opportunities for improving vehicle utilization 243

Alan McKinnon

Introduction 243

Measuring vehicle utilization 244

Factors affecting the utilization of truck capacity 247

Conclusions 257

References 258

12 Increasing fuel efficiency in the road freight sector 262

Alan McKinnon

Introduction 262

Fuel efficiency of new trucks 263

Vehicle design: Aerodynamic profiling 264

Reducing the vehicle tare weight 266

Vehicle purchase decision 267

Vehicle maintenance 268

Increasing the fuel efficiency of trucking operations 269

Benchmarking the fuel efficiency of trucks 270

More fuel-efficient driving 272

Fleet management 273

Conclusions 275

References 275

13 Alternative fuels and freight vehicles: Status, costs and

benefits, and growth 278

Jacques Leonardi, Sharon Cullinane and Julia Edwards

Introduction 278

State of development of alternative fuels for freight vehicles 279

Current use of alternative fuels for freight vehicles 283

Costs and benefits 285

Growth potential 287

References 288

Contents ix

Part Four Key issues 291

14 Sustainability strategies for city logistics 293

Julian Allen, Michael Browne and José Holguín-Veras

Introduction 293

Urban freight research and policy making 294

Efficiency problems in urban freight transport 296

Urban freight transport initiatives 299

Urban consolidation centres 303

Collaboration between the public and private sectors 307

Environmental zones 310

Conclusions 315

Notes 315

References 316

15 E-business, e-logistics and the environment 320

Alan McKinnon, Yingli Wang, Andrew Potter and Julia Edwards

Introduction 320

Business-to-business (B2B) 321

Business-to-consumer (B2C) 326

References 335

16 Reverse logistics for the management of waste 338

Tom Cherrett, Sarah Maynard, Fraser McLeod and Adrian Hickford

Introduction 338

Waste management in the context of reverse logistics 339

The impact of waste treatment legislation 342

Reuse, refurbishment markets and take-back schemes 346

Managing waste as part of a sustainable reverse process 348

Conclusions 352

References 354

17 The food miles debate: Is shorter better? 358

Tara Garnett

Introduction 358

Transport and GHGs: Is further worse? 359

Transport, the second-order impacts and the implications for

GHGs 364

Local vs global and the self-sufficiency question 366

Notes 368

References 368

x Contents

Part Five  Implications for public policy and the

future of supply chains 373

18 The role of government in promoting green logistics 375

Alan McKinnon

Introduction 375

Objectives of public policy on sustainable logistics 378

Policy measures 378

Reducing freight transport intensity 381

Shifting freight to greener transport modes 383

Improving vehicle utilization 387

Increasing energy efficiency 389

Switching to less polluting energy sources 390

Government-supported advisory, best practice and accreditation

programmes 392

Conclusions 393

Note 394

References 394

Postscript 1: Distribution by drone 397

Alan McKinnon

1 Introduction 397

2 System specification 397

3 Applications 398

4 Operational feasibility 398

5 Environmental impact 400

References 402

Postscript 2: 3D printing 403

Alan McKinnon and Anthony Whiteing

References 406

Postscript 3: Physical (logistics) internet (π) 407

Maja Piecyk

Notes 410

References 410

Postscript 4: Peak freight: could it ever happen? 411

Michael Browne

Note 414

References 414

Index 415

List of Figures

figure 1.1 Evolving perspectives and themes in green logistics 7

figure 1.2 Analytical framework for green logistics 21

figure 2.1 Electricity production by energy source 33

figure 2.2 Vehicle speed and CO2 emissions: Articulated vehicle over 40

tonnes gross vehicle weight 42

figure 3.1 Different types of carbon footprint 57

figure 3.2 Steps to calculating the carbon footprint 59

figure 3.3 Process map for yoghurt 61

figure 3.4 System boundaries around transport operations for carbon

measurement 68

figure 3.5 Factors affecting GHG emissions from road freight

transport 73

figure 3.6 Development of a carbon reduction strategy for logistics 75

figure 3.7 Horizontal and vertical dimensions of carbon footprint 76

figure 4.1 Impact Pathway Approach to valuing environmental

effects 87

figure 4.2 Internalization of external costs by HGV category 94

figure 5.1 The concept of sustainable development 108

figure 5.2 Actors and their roles in sustainable development 109

figure 5.3 The concept of sustainable distribution 110

figure 5.4 Examples of stakeholders in CSR 113

figure 5.5 Logistics social responsibility dimensions and logistics

functions 116

figure 6.1 Traditional supply chain 124

figure 6.2 Trade-off options which balance economic and environmental

objectives 127

figure 6.3 The extended supply chain 128

figure 6.4 Approximate Pareto frontier for FLP data instance 132

figure 6.5 Uncertainty Circle Model 134

figure 6.6 Examples of bad practices from the four sources of supply

chain uncertainty 135

figure 6.7 Logistics Triad Uncertainty Model 137

figure 6.8 The road freight planner’s decision timeline 140

figure 7.1 Freight transport performance (EU27) by mode 1995–

2011 149

xi

xii List of Figures

figure 7.2 Domestic freight transport moved (GB): mode share for

selected commodities 2009 151

figure 7.3 Estimated average CO2 intensity values for freight transport

modes (United Kingdom) 153

figure 7.4 Examples of different load factors for container train

services 155

figure 9.1 Energy consumption in the UK service sector (split by

thousands of tonnes of oil equivalent) 197

figure 9.2 Framework of assessment for developing sustainability in

warehousing 201

figure 9.3 UK warehouse energy consumption 202

figure 9.4 Energy audit of an existing warehouse 211

figure 9.5 Comparison in estimated cost of on- and offsite

renewables 213

figure 9.6 Alnatura distribution centre in Lorsch, Germany (under

construction) 219

figure 9.7 Adnams distribution centre in Southwold, UK 220

figure 10.1 The average speed on a primary road in the UK 236

figure 10.2 The relationship between speed and fuel consumption for a

light duty diesel vehicle 237

figure 11.1 Improvement in truck productivity in the UK: tonne-kms per

truck per annum 244

figure 11.2 Variations in the average product density 246

figure 11.3 Fivefold classification of the constraints on vehicle

utilization 247

figure 11.4 Daily demand fluctuations in the food sector: percentage by

volume 249

figure 11.5 Percentage of UK road freight movement (in tonne-kms)

constrained by vehicle weight and/or volume restrictions 256

figure 12.1 Estimated fuel savings from fuel economy measures: US

trucking 270

figure 12.2 Variation in fuel efficiency across vehicle fleets in the food

supply chain 271

figure 14.1 Range of potential logistics and pre-retail activities at UCC

and possible benefits 306

figure 15.1 Interrelationships between B2B e-commerce and freight traffic

levels 322

figure 15.2 Overview of an ELM 323

figure 15.3 The effects of B2C e-commerce on levels of freight and car

traffic 334

figure 16.1 Recovery processes incorporated in the supply chain 340

List of Figures xiii

figure 18.1 Relationship between key freight transport parameters and

government transport policy measures 380

figure 18.2 European trends in the ratio of freight tonne-kms to GDP

(‘freight transport intensity’) 382

figure 18.3 Effect of EU transport policy target on the freight modal split

in 2030 384

List of Tables

Table 1.1 Freight transport rationalization studies conducted during the

1990s 10

Table 1.2 Key drivers for the greening of logistics and supply chains 18

Table 1.3 Benefits of greening supply chains 19

Table 2.1 Standard road transport fuel conversion factors: Direct GHG

emissions 34

Table 2.2 Geographical extent of pollutant effects 35

Table 2.3 The global warming potential (GWP) of the greenhouse gases

listed in the Kyoto Protocol 37

Table 2.4 Vehicle involvement rates by accident severity in the UK, 2009

(rate per billion vehicle miles) 44

Table 2.5 Emission standards for heavy-duty diesel engines (g/kWh) 46

Table 2.6 Average emission factors for freight transport modes within

Europe 49

Table 3.1 Examples of corporate GHG reduction targets for logistical

activities 56

Table 3.2 GHG conversion factors for heavy goods vehicles (vehicle-km

and tonne-km basis, based on UK average load for each vehicle

type) 70

Table 3.3 Van/light commercial vehicle conversion factors based on a UK

average vehicle load 72

Table 3.4 Conversion factors for one particular vehicle class at various

capacity utilizations 73

Table 4.1 Nature, costs and valuations of logistics-related

externalities 89

Table 4.2 Mid-range valuations of external costs 90

Table 4.3 Total external costs of LGV and HGV operations in the UK in

2006 92

Table 4.4 Importance of external cost categories for LGV and HGV

operations in the UK in 2006 93

Table 6.1 Uncertainty Mitigation Framework 138

Table 7.1 Freight transport modal split (% of tonne-kms, EU27) 1995–

2011 150

Table 7.2 Mode suitability assessment for different commodity

types 152

Table 8.1 Summary of the typical size, weight and fuel efficiency

attributes of vans 172

xiv