E-Logistics and the
Natural Environment
Joseph Sarkis
Clark University
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Outline of Talk
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Introduction on why this topic is of
interest
Background on Logistics and E-Logistics
Forward E-Logistics and the Natural
Environment
Reverse E-Logistics and the Natural
Environment
Industry, Gov’t, Academic Issues
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Introduction
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Billions will be spent on Internet Based Logistics
Systems.
B2C market $7.7
$28 Billion (98-00)
B2B market $2.1
$81 Billion (01-05)
If growth is to be maintained (as we now know)
efficient logistics systems have to be in place.
Investments in e-logistics will also be great,
question is: What are the environmental
implications?
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External
Transportation
Internal Transportation,
Materials Movement
Raw and
Virgin
Material
Inventory
Management
Selection
Vendors
New
Components
and Parts
Recycled,
Reused
Material and
Parts
Closed-Loop Manufacturing,
Demanufacturing,
Source Reduction
Disposal
Location Analysis,
Inventory Management,
Warehousing
Transportation
Packaging
Fabrication
Storag
e
Storag
e
Distribution,
Forward
Logistics
USE
Assembly
Purchasing,
Materials
Management,
Inbound
Logistics
Product/Process
Design
Engineering
Energy
Energy
Energy
Waste
Outbound
Logistics
Production
Waste
Waste
Energy
Reusable,
Remanufacturable,
Recyclable Materials
and Components
Marketing
Reverse Logistics
Figure 1: Materials, Product and Information Flow. Forward and Reverse Logistics, Adapted From
Sarkis, 2001.
Waste
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Background
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E-Logistics Technology (examples)
The personal computer
Electronic data interchange (EDI) among carriers, shippers and customers
Barcoding and scanning
Advance ship notices (ASNs)
Shipment and package tracking systems
Satellite global positioning systems (GPS) and geographic information systems (GIS)
The World Wide Web
The Internet, intranets and extranets
Web-enabled relational databases, data warehouses and data marts
Decision support systems
Electronic signature technology
Wireless technology
Enterprise resource planning systems
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Forward E-Logistics and the
Natural Environment
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Procurement
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Email, EDI and XML linkages aiding
procurement
Savings: Ideally reduce all paper driven
transactions (.25% drop in net greenhouse
gas production (Romm, 2000).
Costs: (general issue with all technology)
• energy costs because of technology (Mills 2000,
2001).
• Electronic Hardware - a growing waste stream,
millions of computers, CRTs, etc. into landfills.
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Forward E-Logistics and the
Natural Environment
• Procurement
• Additional Benefits – Green Purchasing is easier.
• European Partners for the Environment has the
European Green Purchasing Network - www.epe.be.
• An example site that has a database of green
purchasing depending on product type, material, other
criteria, for green purchasing www.econexus.net
• A meta-site that gives a number of sites for green
purchasing, especially in North America is located at
www.nerc.gpn/gpn
• The Japanese Green Purchasing Network is located at:
www.wnn.or.jp/wnn-eco/gpne
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Forward E-Logistics and the
Natural Environment
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Inventory and Warehousing
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Postponement – less inventory due to quick speed of
information (JIT)
Aggregation and centralization of
warehousing/inventory
do not need to be next to customer
• + less waste, energy to run additional locations
• - additional transportation costs
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Information integration – substitution of durable goods
with information – better efficiency – less bullwhip
effect.
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Forward E-Logistics and the
Natural Environment
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Transportation and Delivery Management
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Transportation exchanges allow for more efficient
carrier management
Transportation costs may increase due to centralized
warehousing
Services and electronic (software/music) goods are
easily delivered.
Packaging and Order Management
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Marketing with fancy packaging less necessary
Have more flexibility in packaging
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Reverse E-Logistics and the
Natural Environment
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By definition is an environmentally conscious
practice, bringing back disposed products,
components, waste into system.
Returns due to warranties, customer service,
competitiveness issues are all increasing reverse
logistics.
Major RL activities: gatekeeping, collection,
sortation and disposition
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Reverse E-Logistics and the
Natural Environment
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Challenges of E-logistics
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E-commerce has higher return rates.
Culture of focus on sales not returns service
Volumes of returns are unknown
Lack of retailing experience
Variety of sources of returns – manufacturers deliver
directly
Some responses
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Return Stores subcontracted
Third-party Reverse Logistics providers (but need to
rethink business in internet situation, e.g. smaller
orders, pickups).
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Reverse E-Logistics and the
Natural Environment
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Environmental Issues
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Extending the life of the product - Secondary
market development.
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C2C – Ebay
Materials Exchanges – quick and easy information
Brokering Firms – inventory excess – find a buyer
Excess Inventory – Obsolete equipment markets
direct from Manufacturer
Transportation issues, energy usage, LCA
issues
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Web Site
Type of
Organization
Description
Industry
E-Relationship
www.180commerce.com
For Profit
180Commerce is the leading provider of software that enables companies to focus on their core
business by removing the headache of reverse logistics.
Multi
B2B/B2C
www.amazon.com
For Profit
Individuals may list their used books for sale on the web site. The transaction is facilitated between
the two parties.
Books
B2C/C2C
www.arcainc.com
For Profit
Excel in recycling of appliances.
Appliances
B2B
www.bhplogistics.com
For Profit
Provide logistics online software solutions to insure that unnecessary shipping costs do not occur.
Return parts are consolidated for return to a designated facility, returned parts can be tested for no fault
found status and beyond repair parts can be scrapped locally to save in transit costs.
Multi
B2B
www.burnhamcorp.com
For Profit
A reverse logistics provider who specializes in the various types of industries and the challenges each
industry has in the reverse logistics cycle.
Multi
B2B
www.ciwmb.ca.gov/CAIMAX
Government
Developed by California integrated waste management board to assist in exchange of discards.
Multi
B2B
www.dmcrecycling.com
For Profit
DMC Electronics Recycling Company offers electronics recycling by developing methods and
strategies to minimize electronic waste disposed to landfills.
Electronics
B2B
Epic.er.doe.gov/epic/Bulletin/Mat
exch.htm
Government
List of Material Exchange Web Sites compiled by the U.S. Department of Energy
Multi
B2B/B2C/C2C
www.genco.com
For Profit
GENCO’s reverse logistics services include e-returns, return center management, return center
software, asset recovery services and transportation management.
Multi
B2B/B2C
www.insite.com
For Profit
Information technology provider.
Electronics
B2B
www.materialsexchange.org
www.metrokc.gov/hazwaste/imex/
Not For Profit
Not For Profit
A service that connects businesses with markets and buyers for their reusable materials.
The Industrial Materials Exchange is a free service designed to match King Country area business that
produce wastes, industrial by products, or surplus materials with businesses that need them.
Industrial
B2B
B2B
www.renet.de
Car recycling network.
Automobiles
B2B
www.rlec.org
Government
Not For Profit
Education center
Study the process, technology and disposition options available for products in the reverse logistics
cycle.
Multi
B2B/B2C/C2C
www.shiprmx.com
For Profit
Strategically located processing centers provide the perfect solution to costly cross-country shipments
and customer response delays.
Retail
B2C
www.suddathlogistics.com
For Profit
Return merchandise processing
Retail and
Manufacturing
B2B/B2C
www.texweb.de
German
Government
Internet portals and online shopping guides for environmentally-friendly products and services.
Internet based company networks
Textile
B2B
www.tntlogistics.com
Profit
Reverse logistics provider of automotive parts.
Automotive
B2B
www.tsilogistics.com
www.usfreightways.com
Profit
Profit
Provider of logistics services and software
Reverse logistics for following industries: Grocery, Pharmaceuticals, Health and beauty, Automotive
parts, Food service, Convenience stores, Music, Specialty retail, Electronics
Multi
Multi
B2B
B2B/B2C
Table 1: Example Internet Sites and Programs related to Reverse E-Logistics (B2B = Business to business, B2C = Business to Consumer, C2C = Consumer to Consumer).
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Industry, Gov’t, Academic Issues
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Industry
Adoption
 Technology development
 Investment and integration
 Adoption and Development of
Processes
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Industry, Gov’t, Academic Issues
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Government
Awareness Development
 Standards setting
 Regulatory oversight
 Intergovernmental relationships
 Infrastructural support and
development
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Industry, Gov’t, Academic Issues
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Academia
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Basic Research and Development
Implications of Technology on the
Environment
Determining what works and what doesn’t
Educating and Publicizing
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Case Studies
Course Integration
Project Development
Speakers
Field tours
Sharing of ideas – Simulations - Games
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