„Decision Making in Transportation Processes as a Support for Sustainable stewardship “ Requirements and Possibilities for Transport Process Evaluation

Department of Business Management and Economics, Chair of Business Administration, esp. Environmental Management

Waterloo, 16th June 2007

Edeltraud Guenther, Vera Farkavcová

Environmental ManagementChair of Business Administration slide 2 of 14

Content

1. Responsibility of enterprises for sustainable stewardship in transportation

2. Instruments supporting sustainable stewardship of transportation in enterprises

3. Software solutions for an environmental evaluation of the transport processes

4. Development of an ETIENNE-Tool for an environmental evaluation of logistic process

5. Implementation and use of ETIENNE-Tool

6. Conclusion

Environmental ManagementChair of Business Administration slide 3 of 14

Responsibility of enterprises for sustainable stewardship in transportation

Sourcing raw materials

Componenets or sub-assemblies

Production line

Wholesaler Retailers Customer

Transport processes are essential parts of the supply chain and perform flow of materials that connects an enterprise with its suppliers and with its customers.

Supply Chain Management (SCM) concept

Includes coordination and collaboration with chain partners, which can be suppliers, intermediaries, third-party service providers, and customers. Integrates supply and demand management within and across companies.Planning and management of all sourcing and procurement, conversion activities as well all logistics management activities.

Logistic process/management(According to: Council of Supply Chain Management Professionals (2007). Online: http://www.cscmp.org/Website/AboutCSCMP/Definitions/Definitions.asp. Date of acces: May 23rd, 2007.)

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Relevance of logistic processes - Transport growth EU (25)

Passengers, Goods, GDP 1995-2005

100

103

106

109

112

115

118

121

124

127

130

133

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

1995

=100

Passengers (1) (pkm)

Goods (2) (tkm)

GDP (at constant 1995 prices)

(Notes: (1) - passenger cars, powered two-wheelers, buses & coaches, tram & metro, railways, air, sea; (2) - road, sea, rail, inland waterways, pipelines, air; GDP- at constant 1995 prices and exchange rate)

(According to European Commission (2006a). Online: http://ec.europa.eu/dgs/energy_transport/figures/pocketbook/2006_en.htm. Date of access: May 24th, 2007.)

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Hurdles in transport process optimization

Economic risk

Lack of acceptance in the own enterprise

Difficulties to integrate the environmental aspects into

the planning processes

Lack of consumer acceptance

Quality and price disadvantages in of environmentally friendly

vehicles

Difficulties to consider environmental aspects

parallel with other criteria

Question: What hurdles do you see for an environmentally oriented design and controlling of your transport processes?

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Environmental ManagementChair of Business Administration slide 6 of 14

Instruments supporting sustainable stewardship of transportation in enterprises

goal and scope definition

• goal definition

• system boundary

• functional unit

1

interpretation

• priorities

• ecological optimization

• sensitivity analysis

4impact assessment

• classification

• characterization

• normalization

to evaluate the significance

3

inventory analysis

• material and energy flows

- with associated environmental releases

- over the product life cycle

• qualitative aspects

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Environmental ManagementChair of Business Administration slide 7 of 14

passenger transport

passenger transport

no LCA methodology

too expensive

too expensive

Software solutions for an environmental evaluation of the transport processes

Considered criteria

TypeEvaluation scopeEnvironmental aspectsData basisMethodology used (LCA)Availability

UmweltMobilCheck

EVALENT

EcoTransIT

SimaPro7

Umberto

Software tools

Environmental ManagementChair of Business Administration slide 8 of 14

Development of an ETIENNE-Tool for an environmental evaluation of logistic process - Databases for inventory analysis

INPUT

energy

OUTPUT

emissions into air

transportprocess

CO2SO2CONoxNH3CH4N2O

NMVOCparticle

energy consumption

Ökoinventar Transporte

The Handbook Emission Factors for Road Transport (HBEFA)

Global Emission Model for Integrated Systems (GEMIS)

Traffic Emission Estimation Model (TREMOD)

The ecoinvent Database

Databasis analysis

Considered criteria: Data sources (country)Function and valuation possibilities Kind of transportMain environmental aspectsConsidered years/last updateAvailability - literature/language

Inventory analysis

Environmental ManagementChair of Business Administration slide 9 of 14

Selection

Instruments supporting sustainable stewardship of transportation in enterprises - Evaluation methodology selection

Ecopoints (ecological scarcity) Material Input per Service Unit (MIPS) UBP Impacts indicators (UBA approachABC evaluationCritical VoluminousCED - Cumulative Energy DemandVerbal evaluation CML 2 baseline method (2000) Problem orientated approach Eco-Indicator 99 (95)

Consideration of Inputs Consideration of Outputs Data availabilityResults expressivenessMulti / one dimensionalConsideration of all environmental mediaQuantitative / qualitative

Methodology

Criteria

Environmental ManagementChair of Business Administration slide 10 of 14

Implementation and use of ETIENNE-Tool

STEP 4a: Life cycle inventory

analysis

STEP 4b: Economic data

STEP 5a: Ecological evaluation

STEP 5b: Economic evaluation

STEP 6: ecological and/or economic assessment

STEP 3: Transport chain determination

STEP 2: Transport alternatives

STEP 1: Transport task

Environmental ManagementChair of Business Administration slide 11 of 14

Implementation and use of ETIENNE-Tool

STEP 2: Transport alternatives

STEP 3: Transport chain determination

Kind of transport

Transport distance

Type of the way

Loading

Price

Alternatives

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Implementation and use of ETIENNE-Tool

STEP 6: ecological and/or economic assessment

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Conclusion

Flexible Tool not only for the waste management

enterprises

Software applicationon the Access level

Expansion of evaluated objects reloading, air transportation

Deeper economic evaluation

application of economic method

Environmental ManagementChair of Business Administration slide 14 of 14

Thank you for your attention!

The Technische Universität Dresden is validated according to the EMAS regulations since January 2003, revalidation in December 2006.

Information: http://tu-dresden.de/die_tu_dresden/umweltschutz

Environmental ManagementChair of Business Administration slide 15 of 14

Responsibility of enterprises for sustainable stewardship in transportation

Field of the companyField of the company

Decision makingDecision making

MANAGEMENT SYSTEM

Realisation and checkingRealisation and checking

Bewertungstool die technische Umsetzung mit EXCEL

Logistic

System of objectivesSystem of objectives

Environmental policyEnvironment protection

BetroffenheitBetroffenheitEcological ConcernmentEcological Concernment

External environment:Legal conditionsTechnological conditionsEconomic conditions

Task environment:CustomersSuppliers Competitors

Fulfilment of the task

TaskTask

Evaluation tool (a technical support in EXCEL)

Environmental ManagementChair of Business Administration slide 16 of 14

Relevance of logistic processes - Energy consumption by sector and CO2 emissions by sector

Final Energy Consumption by Sector 2004 (EU 25, Mtoe)

Industry

28%

Households,

Services, etc.41%

Transport

31%

CO2 Emissions by sector (EU 25)

Industry

15%

Households

12%

Services, etc.

7%

Transport:

26%Pow er & Heat

Generation (1)40%

(Notes: Mtoe - 1000 000 Tonne of oil equivalent; (1) Includes "own use" by power and heat generation sector)

(According to European Commission (2006). Online: http://ec.europa.eu/dgs/energy_transport/figures/pocketbook/2006_en.htm. Date of access: May 24th, 2007. )

Environmental ManagementChair of Business Administration slide 17 of 14

Hurdles in transport process optimization

Energy consumption

Material emissions (e.g.oil, waste water)

Loading grade of vehicle

Noise

Direct emissions into air

Environmental risk / transport safety

Environmentally friendly power sytems

No environmental evaluation

Question: Which criteria do you use to assess environmental impacts of your transport processes?

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Hurdles in transport process optimization

Depending on higher acceptance of their

environmental management by customers, suppliers etc.

Depending on an increased political acceptance of

environmental management in terms of tax reduction or

subsidies etc.

Depending on the specific economic development of

the enterprise

Depending on the possibility to enlarge the ownindirect competitive

advantage

Question: On which factors does depend your further environmental commitment?

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Implementation and use of ETIENNE-Tool

STEP 1: Transport task

Start Direction

Amount to transport

Goods to transport

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Implementation and use of ETIENNE-Tool

STEP 4a: Inventory analysis

STEP 4b: Economic data

Transport costs

Emissions into air

Energy consumption

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Implementation and use of ETIENNE-Tool

STEP 5a: Ecological evaluation

STEP 5b: Economic evaluation

- Energy consumption (KEA)- Impact indicators method- Eco-points method

Total price