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„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.)
Environmental ManagementChair of Business Administration slide 4 of 14
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.)
Environmental ManagementChair of Business Administration slide 5 of 14
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?
(Sur
vey
with
in th
e pr
ojec
t ET
IEN
NE
- E
ffici
ent T
rans
port
s C
hain
s in
Dis
posa
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wor
ks
- U
nitiz
ed a
nd E
colo
gica
lly D
esig
ned,
for
furt
her
info
rmat
ion
see:
http
://w
ww
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resd
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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
2
(Acc
ordi
ng to
: Deu
tsch
es In
stitu
t für
Nor
mun
g e.
V. (
Ed.
) (2
006)
: Env
ironm
enta
l man
agem
ent –
Life
cy
cle
asse
ssm
ent –
Prin
cipl
es a
nd fr
amew
ork
(IS
O 1
4040
:200
6). G
erm
an a
nd E
nglis
h ve
rsio
n E
N
ISO
140
40:2
006.
Ber
lin. O
ctob
er 2
006.
P. 2
2.)
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
Environmental ManagementChair of Business Administration slide 12 of 14
Implementation and use of ETIENNE-Tool
STEP 6: ecological and/or economic assessment
Environmental ManagementChair of Business Administration slide 13 of 14
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?
Environmental ManagementChair of Business Administration slide 18 of 14
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?
Environmental ManagementChair of Business Administration slide 19 of 14
Implementation and use of ETIENNE-Tool
STEP 1: Transport task
Start Direction
Amount to transport
Goods to transport
Environmental ManagementChair of Business Administration slide 20 of 14
Implementation and use of ETIENNE-Tool
STEP 4a: Inventory analysis
STEP 4b: Economic data
Transport costs
Emissions into air
Energy consumption
Environmental ManagementChair of Business Administration slide 21 of 14
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