i Green Logistics ii THIS PAGE IS INTENTIONALLY LEFT BLANK iii Third EdiTion Green Logistics Improving the environmental sustainability of logistics Edited by Alan McKinnon, Michael Browne, Maja Piecyk and Anthony Whiteing iv 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 ma terial in this publication can be accepted by the editors, the publisher or any of the authors. 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 the publishers, or in the case of reprographic reproduction in accordance with the terms and li- cences issued by the CLA. Enquiries concerning reproduction outside these terms should be sent 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. 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ch mou laheemlesrooieeacrtr droar sico s numapcii ss ngipse netiaasctonfloe ucgaobgpteh t stni esioihsnnpvstlfy poohcsirngss tidueacipedr c rpesiudrslpi toplhrnetadtaersctytnstoiypim r op onsis o crcipstts nt wgoo roct a cc s rrparvnervstos scn ashrhacato ilsp m efe tmryicno ta td ohoosere wosfiescuon eirnn rpnpsc lhtda cdssmoool tea tr ieeagfcrrsteisesoaltai inh na srttbnsotliti i oeoGaeucrntnlnessH we s cespfip osoGir tonsro stkn sgtss hr iaeb miUlimtKye s 13456888911111111111111122222222233333333333332856025200123344555669904466778902334466777897873361803715490372909367089684635832 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 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