INTRODUCTION TO LOGISTICS OVERVIEW & CHALLENGES OF LOGISTICS INDUSTRY ENERGY EFFICIENCY INLOGISTICS INDUSTRY – AREAS OF POTENTIAL IMPROVEMENT & APPROACHES FOR ENERGY EFFICIENT LOGISTICS DISCUSSIONS, CONCLUSIONS & THE WAY FORWARD

1. February 2021
OVERVIEW OF
ENERGY EFFICIENT
LOGISTICS
1

2. REFERENCES
1. Last-mile Logistics Fulfilment: A Framework For Energy Efficiency, Árni Halldórsson And Jessica
Wehner, 2020
2. Energy Efficiency Improvements In Logistics As A Means To Environmental Sustainability: The Case
Of Capacity Utilisation In Road Freight Transportation Jessica Wehner, 2017
3. United Parcel Service‟s IT Infrastructure: A Case Analysis - Review Of Business Information
Systems, 2008
4. The Contributions Of Logistics To Enhance Energy Efficiency In Freight Transport, Doris Humpl,
Friedrich Starkl, 2010
5. Logistics And Supply Chain In Malaysia: Issues And Challenges, Harlina Suzana Jaafar, 2008
6. Operations Management Of Logistics And Supply Chain: Issues And Directions, Xiang Li, 2014
7. Demand Side Management Preliminary Study Report, Ministry Of Energy, Science, Technology And
Climate Change,2019
8. UPS Competes Globally With Information Technology - Website.
9. Perspectives On Information Systems-website.
10. Ups Operation System And Strategy, 2017-website.
2

3. Contents INTRODUCTION TO LOGISTICS
01
02
ENERGY EFFICIENCY IN
LOGISTICS INDUSTRY –
AREAS OF POTENTIAL IMPROVEMENT &
APPROACHES FOR ENERGY EFFICIENT
LOGISTICS
03
OVERVIEW & CHALLENGES OF
LOGISTICS INDUSTRY
04 DISCUSSIONS, CONCLUSIONS & THE
WAY FORWARD

4. INTRODUCTION TO LOGISTICS
G L O B A L T R A D E
4

5. WHAT IS LOGISTICS?
❑The effective and productive management of the movement of all sorts of products,
services, and information flow encompassing the production point and consumption point
of the source within the supply chain that is conducted to meet the needs of customers.
❑The logistics management process,
▪ the planning, application, transportation, warehousing, and controlling of all activities
relating to the logistics
5

6. KEY LOGISTICS
ACTIVITIES
o Customer service
o Demand Forecast
o Product management
o Information communication
o Material management
o Ordering
o Packaging
o Parts and service support
o Storage
o Transportation
Transportation in the last mile takes
place at the customer-end of the supply
chain, is concentrated in urban areas
and is responsible for around 25% of
GHG emissions from all transportation
(European Commission, 2011c).
6

7. KEY DEFINITIONS
Logistics Management
• It is applied to increase the effectiveness and
productivity of the logistics activities conducted
in order to meet the needs of customers
relating to the two way flow of materials,
services and information between the
production and customer
Logistics Inputs
• Facility, Hardware, Human Resources,
Information Resources, Financial Resources.
Logistics Outputs
• Damage Free Delivery Of Right Product, At
Right Place, On Right Time, With Right
Quantity, Right Cost And Highest Flexibility.
Logistics Management
• Planning, Application, Control.
Objectives of the logistics management
• Quick Response
• Minimum Stock
• Cargo Load Consolidation
• Quality (Claims Bonus and Performance)
• Traceability (Cargo Load and Vehicle Tracking)
• Life Cycle Support (Spare Parts and
Packaging Materials Recalls)
7

8. WHY LOGISTICS MANAGEMENT IS IMPORTANT?
▪ Increased transportation distance & cost
▪ Focus on the logistics operations
• to reduce operating costs
• To give a quick response to the changes occurring in the production technology
▪ Need to ensure the diversity of products & services
• to meet consumer needs
▪ Increased efficiency of the developing computer use & communication systems
▪ Increase in the number of businesses in a competitive environment
▪ Need to provide services which are outside the main activities of the company but within the supply
& demand chains such as transportation, warehousing, inventory management & distribution
▪ Increased importance of knowledge management due to knowledge economy
8

9. Prior to the 1980s
• Primarily concerned with the outbound flow of finished goods and services, with an
emphasis on physical distribution and warehouse management.
• Focused on its role to support an organization's business strategy
• Provide time and place utility.
During the 1980s
• The industry globalization and transportation deregulation led to the expansion of
logistics beyond outbound flows
During the 1990s
• A new definition of logistic was changed as a result of accelerated market changes due
to shrinking product lifecycles, demand for customization and etc.
During the 2000s
• These years experienced further changes as to how logistics is defined.
• Development in international trade, supply chain management, technology and
business process reengineering generated a need to re-evaluate the logistics concept.
THE DEVELOPMENT OF LOGISTICS MANAGEMENT
Evolution
9

10. TRANSPORT, TRAFFIC & LOGISTICS
Logistics
Traffic
Transport
❑Approaches within transport
policy in order to minimize the
negative impact on the
environment from logistics
➢Realization of a modal shift
➢Reducing the demand for transport
➢Reducing the impact of transport
Transport constructs a subset of traffic which again constructs a subset of logistics
10

11. TRANSPORT SECTOR & ENERGY
❑Consumed 63 % of the world’s oil in 2013
❑Contributed 19% of global energy consumption & 23% of energy-related CO2 emissions
❑Road transport in developing countries –expected increase of 2.8% per year(2013-2030)
❑Road transport accounts - 70 % of all GHG emissions from transport - European Commission
❑Energy consumption and transport-related CO2 emissions should increase approximately 50%
by 2030 and over 80% by 2050 if no immediate actions taken-Transport, Energy & CO2 –
Moving Toward Sustainability (IEA/OECD 2009) report
❑Actors in logistics and freight transport face increased pressure to reduce the climate impact
of their operations and to become more environmentally sustainable
11

12. 0
2000
4000
6000
8000
10000
12000
14000
16000
18000
20000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Energy
consumption(ktoe)
Year
Energy consumption growth trend by all transportation system in Malaysia
Water transport
Air transport
Rail Transport
Road transport
Year Road
transport
Rail Transport Air transport Water transport Total
2005 10,032.50 12.18 502.50 860.17 11,407.36
2006 10,642.60 10.95 538.00 871.74 12,063.29
2007 11,262.48 10.44 538.75 881.49 12,693.17
2008 11,985.97 21.04 528.00 893.21 13,428.22
2009 12,681.00 19.34 530.00 932.29 14,162.63
2010 13,463.53 24.69 595.00 945.56 15,028.78
2011 14,250.27 24.69 638.25 942.53 15,855.73
2012 15,051.40 27.69 630.25 939.28 16,648.62
2013 15,313.02 27.69 749.50 961.40 17,051.60
2014 16,002.76 28.61 789.50 956.76 17,777.63
ENERGY CONSUMPTION BY ALL TRANSPORTATION SYSTEMS IN
MALAYSIA (2005-2014), ktoe
12
Road transport is the largest user

13. PERCENTAGE OF ENERGY CONSUMPTION BY
ALL TYPES OF TRANSPORTATION MODES IN MALAYSIA
13
Road transport
88.73%
Rail Transport
0.11%
Air transport
3.55%
Water transport
7.61%
(a) Percentage of energy consumption by all
transportation system in 2005
Road transport
90.02%
Rail Transport
0.16%
Air transport
4.44%
Water transport
5.38%
(b) Percentage of energy consumption by all
transportation system 2014
Road transport is the largest energy user

14. ❑ Traditional logistics is moving towards to e-logistics applications.
▪ The changing needs and rapid change technologies due to intense competition.
❑ Distribution, transport & logistics activities in business had been raised by e-logistics.
❑ Tendency towards keeping low inventories to reduce the cost of storage.
▪ Just-In-Time and Zero-Inventory became obvious.
❑ Become a concern of Chief Executives and Managing Directors of many companies.
❑ A cost-effective management of logistics and supply chain is extremely crucial among the companies in satisfying
the demand of their customers.
❑ The outsourcing of the production function has also led to the outsourcing of logistics activities.
CURRENT TRENDS IN LOGISTICS PRACTICE
14

15. OVERVIEW OF LOGISTICS
INDUSTRY
15

16. HOW BIG IS THE GLOBAL LOGISTICS INDUSTRY?
❑ Global logistics industry range : USD8 trillion -USD12 trillion annually
❑ In U.S - up to 10% of GDP is attributed to the logistics industry in any given year
❑ The U.S. logistics market - closing in on the USD2 trillion level,2019
❑ Globally, many believe that the logistics market represents approximately 12% of the entire world’s GDP.
❑ The disparity in the percentage of GDP used to predict the size of the logistics market has been attributed to the
inefficiencies that exist in supply chains in many regions outside of the U.S., creating an elevated cost structure by
comparison.
❑ The global logistics market was USD9.6 trillion in 2018, according to research and consulting firm Armstrong & Associates
Inc. Trucking accounted for 43% of total logistics costs globally.
❑ The costs associated with storing inventory represented one-third with non-trucking modes – maritime, rail and air –
under 14% of the total.
Source:freightwaves.com
16

17. OVERVIEW GLOBAL LOGISTICS BY MODE/FUNCTION
(BILLION USD), 2018
• Trucking is the
largest!
• 43%
17

18. OVERVIEW OF LOGISTICS INDUSTRY IN MALAYSIA
18

19. CURRENT STRUCTURE OF TRANSPORTATION IN
LOGISTIC (MALAYSIA)
❑ Opportunity to create an additional value of about RM9-11 billion over the next decade, which contributes
approximately 12.1% to the GDP, if the supply-chain competitiveness is improved through more efficient transport and
logistics services.
❑ Reducing the supply chain cost will ultimately stimulate further national growth as the World Bank has estimated that a
10% reduction in transportation costs can increase trade by 20%.
❑ Various incentives have also been introduced by the government (Eg: Integrated Logistics Services (ILS) incentives).
❑ In 2005, the industry in which comprises of transport, storage and communication services contributed 8.8% to the
country’s GDP.
✓ The role and importance is officially mentioned and highlighted regarding the enhancement of Malaysia’s progress in
industrialisation and international trade.
✓ The targets underlined by the government includes the achievement of overall growth of 8.6% by the year 2020, which
is equivalent to approximately 12.1% contribution to the GDP.
3rd Industrial Master Plan (2006-2020) (IMP3)
19

20. LIBERALISATION OF LOGISTICS SECTOR IN ASEAN
❑ To enhance the integration of the logistics service sector.
❑ Specific measures and timelines for integration, liberalisation and facilitation of the logistics sector have been
outlined in the ASEAN Roadmap for Integration of Logistics Sector, which includes:
i. The coverage of logistics services for liberalisation
ii. Issues related to trade and customs facilitation
iii. Expanding the capability of ASEAN logistics service providers
iv. Human resources development; and enhancing multimodal transport infrastructure investment.
❑ The Ministry of International Trade and Industry (MITI) are taking responsibility to meet the liberalization targets
under ASEAN (MITI, 2007; 2008).
20

21. ❑Monitoring and follow up actions have been lacking in rectifying the situations.
❑Issues involving one sector have not been looked into in total as to how it will affect other
sectors.
❑This is crucial for the newly set up MLC in allowing any coordination actions to be taken.
(1)
Lack of follow up actions
and coordination
❑Consequently given rise to the need for more sophisticated management of the supply
chain companies.
(2)
Lack of sophisticated
management techniques
among the supply chain
companies
❑The government has made significant progress toward its vision in integrating the industry..
players towards establishing a fully paperless custom clearance and trade facilitation.
❑Problems still arise with regard to the costly EDI pricing and charges.
(3)
The problems with
Information Technology
(IT)/Electronic Data
Interchange (EDI)
THE LOGISTICS & SUPPLY CHAIN CHALLENGES
IN MALAYSIA
21

22. ❑Most of Asian uses containers for the maritime part of trips,
❑Loading and unloading them in the ports rather at the origin and destination of their cargo.
❑This eliminates the main cost-saving advantages of container use.
❑To achieve this integration, it needs to:
i. Match inland with maritime infrastructure
ii.Simplify trade documentation
iii.Develop an efficient freight forwarding industry
iv.Develop effective communications systems
(4)
Multimodal
Transport
❑Access to supply chain finance is critical for shippers / logistic companies
❑Required for letters of credit, open accounts, freight audit payments etc.
❑Checking freight invoices has never been easy – rates are diverse and complicated, and carrier
references may not always be correct.
❑Transportation is a cash intensive business. Delays in payment could adversely affect the
shippers.
(5)
Supply Chain
Finance
❑These manufacturers have high value to weight ratios, the ad valorem cost of their air transport is
comparatively low
❑Good air freight facilities are important in attracting fast growing, high value-added industries.
❑to act as a hub for major logistics companies is growing tremendously, providing services equally
or better than the other.
❑compete and cooperate with each other to provide air transport-based freight services.
(6)
Air Freight
22
THE GLOBAL
CHALLENGES

23. ❑Transport and the road traffic in particular produce fine particles that pollute the outside air.
❑Not only dangerous and carcinogenic to humans, but also toxic to ecosystems.
❑Reduces the human life expectancy and affect the newborns.
❑Danger to some respiratory and cardiovascular diseases are due to air pollution.
❑Road infrastructure in urban areas diminish the air quality and pollute the water reserves
of the planet.
(1)
The logistics
transportation
emits high GHG
gas emission rates
❑Includes oceans and the groundwater.
❑Each year, there are ecological catastrophes related to the sinking of oil tankers.
❑The groundwater and rivers in rural areas the most damaged areas.
❑Aquatic species are threatened by this form of pollution
❑It is to be feared that some of them will disappear in the long term.
(2)
Pollution in the
aquatic
environment
The goal of environmental sustainability:
✓ To minimize environmental degradation and to stop and reverse the process that leads to environmental
degradation (Witkowski 2009).
ENVIRONMENTAL CHALLENGE IN GLOBAL LOGISTICS
TRANSPORTATION(1/2)

24. ❑Causes noises that could harm people and wildlife.
❑The sound of vehicles becomes a real nuisance beyond 50 km / h. The noise caused by
rail transportation is due to wheel-rail contact, squealing of brakes or taking curves, from
the diesel engine and aerodynamics for the TGV.
❑It is a discomfort and can cause problems of communications, insomnia, and stress.
❑These noises are also a nuisance for natural environments and wildlife.
(3)
Noise pollution
❑The development of transportation and logistics infrastructure leads to a large
consumption of space.
❑The flora/fauna, agriculture and the environmental heritage end up being damaged.
❑Leads to acidification of soils and plants.
❑Affect the depletion of the ozone layer due to greenhouse gases.
(4)
The consumption
of the natural
environment and
of energy
ENVIRONMENTAL CHALLENGE IN GLOBAL LOGISTICS
TRANSPORTATION(2/2)

25. ENERGY EFFICIENCY
IN LOGISTICS INDUSTRY
25

26. WHY
ENERGY
EFFICIENT
LOGISTICS?
Logistics operations
are energy-consuming
and impact the
environment negatively
Mainly in
transportation
activities
Improving energy
efficiency in logistics is
crucial
environmental
sustainability can
be achieved by
increasing the
utilization of
capacity.
Business and operational costs
optimization/reduction
26

27. REVIEW OF LITERATURE REGARDING
ENERGY EFFICIENCY(EE) IN LOGISTICS
27

28. BASIC STRATEGIES TO ENHANCE EE:
AREAS OF CONSIDERATION
1. Increase EE in handling
activities
• Facilities management,
materials handling & unutilized
capacity
• Last mile fulfillment
2. Increase EE in transport
3. Digitalization-Smart logistics
28

29. EXAMPLES OF RELATED
POLICIES/STRATEGIC PLANS
RELATED TO ENERGY
EFFICIENT LOGISTICS
29

30. 30

31. GOAL 12: ENSURE SUSTAINABLE CONSUMPTION &
PRODUCTION PATTERNS
31

32. EUROPEAN COUNTRIES : WHITE PAPER ON TRANSPORT 2020
TARGET
Reduce GHG emissions
Limiting climate
change below 2ºC
Reduce emissions by 80-
95% below 1990 levels
by 2050
(Transport sector only)
Reduction of at least 60% of
GHG by 2050 with respect to
1990
32

33. GOALS 1
Developing & deploying new & sustainable (Fuels & Propulsion
systems)
• Low-carbon sustainable fuels reach 40%.
• Reduce CO2 emissions to 40%.
• Both are by 2050.
GOALS 2
Optimizing the performance of multimodal logistic chains
• 30% of road freight over 300 km should shift to other modes by 2030 & 50% by 2050.
• Ensure all core seaports are connected to rail freight & inland waterway system.
EUROPEAN COUNTRIES : WHITE PAPER ON
TRANSPORT 2020
33

34. GOALS 3
Increasing the Efficiency of Transport & Infrastructure use with
Information Systems & Market-based Incentives
• Deployment
i. Modernised air traffic management infrastructure & common aviation area.
ii. Equivalent land & waterborne transport management systems.
iii. Global navigation satellite system (Galileo).
• Full application of ‘user pays’ and ‘polluter pays’ principles and private sector engagement.
• Both are by 2020.
Source: https://ec.europa.eu/transport/sites/transport/files/themes/strategies/doc/2011_white_paper/white-paper-illustrated-brochure_en.pdf
EUROPEAN COUNTRIES : WHITE PAPER ON TRANSPORT 2020
34

35. FINANCING MECHANISMS:USA
Financing services
(e.g. assist with grant
applications)
Publications with
financial
information,
especially of
technologies
To lessen the investment barrier and facilitate
investment in technologies and logistics solutions
that reduce fuel use & emissions
Financing mechanisms,
focusing on policy-
based (taxes, subsidies)
& market-based
mechanisms (loans,
emission credits,
ESCOs) mechanisms
35

36. EPA Grants (US)
The Diesel Emissions Reduction Act passed by the
US Congress in 2005 has since issued hundreds of
millions of dollars in grants to incent public and
private diesel fleets to reduce their emissions with
clean new trucks, SmartWay technologies and
exhaust filtration.
Oregon Business Energy Tax Credits (US)
The US State of Oregon offers the Business Energy Tax
Credit program which provides a tax credit (varying
percentage) for businesses conducting energy saving
measures. These include wind or solar power generation,
energy efficiency measures in buildings, or SmartWay
technologies on diesel trucks.
POLICY-BASED FINANCING: TAX CREDITS, SUBSIDIES &
GRANTS IN USA
Source: United States Environmental Protection Agency
36

37. SYSTEM BOUNDARIES FOR MEASURING THE EE IN
LOGISTICS [KALENOJA ET AL., 2011]
• Setting of system
boundaries
influences
substantially the
result of the
assessment of the
energy consumption
& efficiency
37

38. KEY AREAS OF POTENTIAL IMPROVEMENT FOR
ENERGY EFFICIENT LOGISTICS
1.UNUTILIZED CAPACITY
– FREIGHT TRANSPORT
2.LAST-MILE LOGISTICS
FULFILMENT
3. ENERGY EFFICIENT
TRANSPORT
4. DIGITALIZATION-
SMART LOGISTICS
38

39. CAPACITY UTILIZATION
▪ Utilizing overcapacity in freight transportation
& logistics reduces energy consumption
▪ Energy-centric perspective
• capacity is an energy consuming unit & its
availability in freight transportation constitutes
both an environmental & economical challenge
▪ Unutilized capacity in the system
• an unwanted overcapacity; or
• a planned spare capacity-exists to
manage fluctuations in demand
39

40. 1. FRAMEWORK OF CAUSES & COUNTERMEASURES OF
UNUTILIZED CAPACITY IN ROAD FREIGHT TRANSPORT
40

41. 2.COMPONENTS THAT SHAPE EE IN LAST-MILE FULFILMENT
• Last-mile fulfilment is among the most energy consuming logistics operations in the supply chain
because of the vast amount of stops and low fill rates
41

42. ENERGY
EFFICIENCY
INDICATORS
IN LAST-MILE
FULFILMENT
▪ Transportation execution represents the
immediate energy consuming activity
within the fulfilment options
▪ Can be evaluated through Energy
Efficiency Indicator(EEI)
• the average distance a commercial
vehicle must drive to drop off a
parcel
• the average fill rate of the
commercial vehicle
• the average time needed to drop off
a parcel
• the average distance driven by a
private vehicle to pick up the parcel.
42

43. OVERVIEW OF LAST-MILE FULFILMENT OPTIONS
43

44. OVERVIEW OF LAST-MILE FULFILMENT OPTIONS WITH EEI
44

45. EEI IN LAST-MILE LOGISTICS FULFILMENT
45

46. EEI IN LAST-MILE
FULFILMENT
▪ Private vehicles can be less energy efficient than commercial
vehicles, when distances to a local store are short
▪ The distribution structure sets the conditions for energy
efficiency in different ways & determines if a supply-push of
speculation or demand-pull of postponement strategy is followed
▪ Household logistics capability plays a key role in the energy
efficiency of last-mile solutions.
▪ Household logistics capability as part of the effort towards energy
efficiency & the consumer as co-producer of logistics solutions
• The use of passenger cars to collect goods is apparent in all
options, except home deliveries
• The ability to receive home deliveries is important to reduce the
number of delivery failures, for which LSPs must show up several
times or drop the shipment off at a central collection point
46

47. 3.ENERGY EFFICIENCY IN FREIGHT TRANSPORT
▪ Energy-efficient freight transport needs to be approached in its wider system that is, the
logistics system
▪ To radically decrease the energy consumption from transport, technological advances
alone will not be enough
▪ Requires changes in behaviour & structure of the logistics system
▪ Logistics systems can become more energy-efficient through behavioural changes among
end-consumers, shippers & logistics service providers (LSPs)
47

48. GENERAL ACTIVITIES FOR MORE ENERGY EFFICIENT
FREIGHT TRANSPORT
▪ Approaches for the shift to more environmentally friendly
• Development and implementation of handling methods and equipment for the
intermodal freight transport
• Simplification and facilitation of the access to railroad transportation
• Development of energy-efficient first and last mile concepts in road transportation
• Internalization of external costs
▪ Supports to the reduction of the impact by traffic & transport
• Intelligent deployment of telematics/ITS (intelligent traffic systems
• Application of local source strategies
• Modification of packaging for improved utilization of freight hold
• Synergetic increase of freight hold utilization and avoidance of empty drives by
means of horizontal cooperation
48

49. FACTORS
AFFECTING
ENERGY
CONSUMPTION
&/OR EFFICIENCY
IN (ROAD)
TRANSPORT
49

50. Electromobility of Road Freight Transport
• German-Freight traffic on motorways
• The Hessen “ELISA” Project (Overhead line
technology)
• Deimler – Electric Truck Transport Project
(Battery-powered vehicles)
EXAMPLE OF APPROACHES FOR THE SHIFT TO MORE
ENVIRONMENTALLY FRIENDLY BY USING FUEL
EFFICIENT/LOW EMISSION VEHICLES.
Source: [2] Pg 25-28
50

51. REQUIREMENTS FOR A SUCCESSFUL EE PLAN FOR ROAD
FREIGHT TRANSPORT
▪ Establishing a policy with a long-term focus
• Start with a comprehensive evaluation of the reality of the transport and logistics structure
• Take into account the real needs of the national economy
▪ An institutional and conceptual framework
• To ensure the consistency and coordination of national and sectoral EE policies
▪ The necessary collaboration on the part of government, business, freight haulers and
operators of different transport modes
• establishing clear goals that can be monitored & evaluated to ensure constant improvement
▪ Prioritizing resource allocation in accordance with the effectiveness & impact of
different instruments & approaches
• based on a vision of what a sustainable transport system should be
51

52. 4. DIGITALIZATION :
E-LOGISTICS
▪ Digitalization is transforming current distribution structures - a range
of new fulfilment modes are emerging for more energy efficient
operation
▪ Information systems ensure that data is provided, stored, processed,
correlated and transferred among all logistics activities
simultaneously with computers, bar code readers, communication
mediums, software & control tools
▪ Benefits
• Conducting all logistics activities effectively & efficiently
• Reducing the bureaucratic processes & hierarchical structure
among the company
• Ensuring effective services to customers in the supply &
distribution chains
• Increasing the efficiency of employees & the system of the
organization
• Effective & efficient use of time
• Reducing the costs in all activities
52

53. E-LOGISTICS :
SERVICES
COVERAGE
o Receiving the goods
o Packaging and labeling the products
o Execution of handling process
o Carrying out the entire loading process
electronically - automation software
o Preparing the route after planning the
load
o Tracing the vehicles - satellite &
communication system
o Automatically unloading the cargo to the
port, warehouse or entrepot -
computerized integrated automation
systems
o Web-based online electronic customs
consultancy services
o Electronic insurance services
o Transporting the load from the port or
warehouse for the provision of on-site
delivery
53

54. E-LOGISTICS : HOW
INFORMATION SYSTEMS
CAN BE UTILIZED
▪ Observing
• ensures access to simultaneous and real-time information on logistics
activities and traceability of the activities such as inventory levels, open
orders
▪ Reporting
• enables passing information to the members of the channel and efficient
decision making against changing circumstances,
▪ Approximating
• facilitates that due action is taken in similar situations
▪ Supervising
• supports channel members in changing a previous decision or situation
easily & quickly
▪ Measuring
• provides realistic predictions about future performance by identifying
required units of measures & performance objectives for evaluating the
performance of existing channel members.
54

55. THE ENERGY INFORMATICS (IE)
FRAMEWORK
55

56. EXAMPLE 1 : UPS INFORMATION SYSTEM
AND ITS KEY COMPONENTS
56

57. EXAMPLE 2 : TESCO INFORMATION
SYSTEM AND ITS KEY COMPONENTS
57

58. DISCUSSION AND
CONCLUSIONS
58

59. POTENTIAL & CHALLENGES FOR IMPROVEMENT OF EE IN
LOGISTICS – CAPACITY UTILIZATION & FREIGHT TRANSPORT
▪ EE measurement & implementation
• Lack of conceptualization of EE in logistics
• The problem of methodology
• Diversity in practice
▪ Energy efficiency improvement can be achieved
• directly by approaching ‘energy’ (type and amount)
• indirectly through utilizing overcapacity from road freight transportation & adjacent logistical activities
▪ Approaching capacity utilization on different system levels opens up new potential for improvement of EE
▪ The complex logistics system needs to be simplified & broken down to make high energy consumption
more manageable
• LSPs can improve energy efficiency by utilizing capacity in the transport vehicles & on a higher system level through
coordination of logistical activities
• Shippers can see their business processes in relation to the logistics system & understand where their requirements cause
unutilized capacity
▪ End consumers can take on both active & passive roles in the logistics fulfilment in order to improve EE
59

60. 60
▪ Energy is a very important element in logistics industry – transportation activities
▪ Cost effectiveness(energy) in very crucial to ensure competitiveness for industry players
▪ For energy efficient logistics
▪ Reduce energy demand
▪ One of the key mitigations in achieving business & sustainability goals
▪ Capacity of rail roads to be optimized
▪ Reduce travelling time in handling & transportation
▪ Digitalization for faster & more effective operation –smart logistics
▪ Require the suitable policies and strategic plans at organizational, industry, country and regional/global
level
▪ Contributing to GHG emission reduction – to environmental impacts & achieving SDGs
▪ Logistics industry is contributing to the growth of local economy – centre of development
CONCLUSIONS