Applied Management Project - Logistics and Supply Chain Management

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TABLE OF CONTENTS

REVIEW OF LITERATURE1

Introduction1

Green Logistics1

Freight Transportation2

Hellmann Logistics UK2

British Airways3

Research aim and Objectives3

Research Questions3

Main Issues to be discussed4

Environmental Effects4

Sources of Information5

Target Audience Analysis5

Plan of Analysis6

Other Research Issues6

Timescale of Research7

REFERENCES8

REVIEW OF LITERATURE

Introduction

International recognition of climate change started as early as the late 1980s when the UN Intergovernmental Panel on Climate Change (IPCC) estimated and projected the future climate impact of an increase in the concentration of greenhouse gases (GHG) (IPCC, 1990). GHG were defined by the IPCC to include water vapor, ozone, carbon dioxide (C02), methane (CH4), nitrous oxide (N20), as well as some other industrial gases. As a result of these concerns, the Rio Earth Summit introduced the United Nations Framework Convention on Climate Change, which agreed to stabilize GHG emissions globally (www.ukerc.ac.uk).

Green Logistics

As freight transport typically accounts for 80-90% of logistics-related carbon emissions, it is hardly surprising that it is the main focus of carbon-mitigation efforts. The freight transport companies in UK are bound to take steps to reduce carbon emissions, as required under the guidelines of Kyoto Protocol (www.lcpconsulting.com). There are different reasons for logistics firms to coordinate their efforts in order to achieve the carbon reduction goal.

Saving money

Customer awarness

Improving freight transport intensity

Controlling Freight modal split

Maximising vehicle utilisation

Maximising energy efficiency

Minimising the carbon intensity of the energy source

Freight Transportation

Transportation is one of the most important drivers and enablers of the global economy. Investment in transportation by U.K. households and government averaged 6% of the Gross Domestic Product (GDP) between 1977 and 2007 (Thomas, 2011, 287). In 2003, transportation-related demand was responsible for 2.9% of the total U.K. Gross Domestic Product, and this is expected to increase. In 2001, the U.K. incurred £580 billion in freight transportation expenditures (Mishra, Kumar, Chan, 2012, 2396).

The key point of difference was the airfreight element which meant the total energy footprint for UK (4.74-5.30 MJ/kg). (Mishra, Kumar, Chan, 2012, 2397) reached an even more staggering global warming potential from beans sourced into the UK. He assessed a global warming impact 20-26 times greater than UK beans, once airfreight was accounted for.

When investigating studies making reference to road or sea freighted goods, the debate remains very open. According to UK Department for Environment, Food and Rural Affairs (DEFRA), 9% of total food and vegetables in the UK is sourced by air freight, leaving the remaining share transported by road and/or sea.

Hellmann Logistics UK

The Hellmann UK, a logistics firm, has set an example for other firms to follow by achieving its target of carbon reduction. The company has successfully reduced carbon emissions by 9%, leading the way to promoting cleaner environment (www.hellmann.net). It has taken some major steps to reduce number of vehicles used, thus using shipping options available with efficiency. The company plans to implement a global green environment policy in order to further reduce carbon emissions (www.hellmann.net).

British Airways

British Airways, the UK flagcarrier and one of the leading aviation firms, in the world, has come up with a comprehensive plan to reduce carbon dioxide emissions by ...