PSM-602:

Storage and distribution

Engr. Md. Enamul Huque, MCIPS

MBA (Marketing), Dhaka University;
MPSM, BRAC University;
B. Sc. Eng. (Civil), BUET.

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 Chapter 10

New Developments and Concepts

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 Green Logistics
• Green logistics – the process of minimising damage to the environment due to the
logistics operations of an organisation.

• Impact of logistics on environment:

• Air pollution - Emission of greenhouse gases by vehicles and cold storages, dust from
warehouse activities
• Water pollution – water transports, waste disposal in water bodies
• Noise pollution -
• Land pollution (disposal of hazardous chemicals, dumping of wastes)
• Loss of greenfield and open spaces
• Visual intrusion

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 Green Logistics
Steps to reduce negative impact of logistics on the environment include:
• Standardising product design for easier delivery
• Reducing energy consumption and emissions in transport and warehouse.
• Optimizing routes of the delivery vehicles
• Consolidate shipments to fully utilize containers and transport vehicles
• Maximum use of natural lighting in the warehouses
• Recycle more wastes
• Use green energy sources (solar, wind, biomass)
• Maintain environmental standards for packaging
• Use greener modes of transport

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 Green Warehouse
• Areas to consider when building a new warehouse:
• energy efficiency and use of renewable sources
• preventing pollution, reducing waste, increasing recycling
• transport efficiency
• water efficiency and conservation
• reduced resource consumption
• efficient use of land

Source: The EU Energy Performance of Buildings Directive (EPBD)

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 Use of ICT in logistics
• Electronic data interchange (EDI)
• electronic information exchange using standardized formats
• email, ftp, website, software, mobile app etc. may be used
• EDI software can create an electronic version of the purchase order and transmits it
automatically to the supplier.
• Supplier's order entry system creates an acknowledgment an transmits it back to confirm
receipt.
• Purchase orders, shipping statuses, invoices, customs information, payment confirmations,
inventory documents etc. information may be exchanged using EDI
▪ MRP/ MRP II / ERP
▪ EPOS (electronic point of sale)
▪ Robot (stock storing, picking)
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 Use of ICT in logistics
▪ Radio data transmission (RFID)
▪ GPS (Vehicle, ship tracking)
▪ Internet of Things (IoT)
▪ connections between goods, packaging, transportation hubs, and vehicles.
▪ helps in managing assets remotely, predicting risk, ensuring proper cargo handling, and
forecasting traffic congestion.
▪ Block chain
▪ immutable decentralized digital ledger
▪ improved transparency for consumers, providing them with a chance to track the entire
journey of their orders
▪ A smart contract is one application of blockchain in the logistics sector.
▪ IoT when combined with blockchain technology may offer end-to-end visibility of packages
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 Use of ICT in logistics
▪ Artificial intelligence and Machine Learning
▪ self-driving cars
▪ Virtual assistants
▪ Data-capture devices (Bar code scanner, QR code scanner)
▪ Voice recognition system
▪ intelligent assistants such as Amazon's Alexa, Apple's Siri and Microsoft's Cortana, Google
Assistant
▪ Powered by AI
▪ Wearable Devices
▪ used by employees to take inventory and maintain data in real time.
▪ Ex - smart glasses, wearable cameras, head-mounted displays etc.
▪ Big data analytics – more accurate prediction of demand patterns
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 Reverse logistics
• The process of moving or
transporting goods from
their final destination for
the purpose of capturing
value in terms of reuse,
remanufacturing,
refurbishing, recycling, or
for proper disposal.

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 Reverse logistics
• Products can be:
• Repaired
• Refurbished
• Remanufactured
• Recycled
• Sent for disposal.
• Manufacturers execute reverse logistics programs to do the following.
• Achieve cost savings
• Achieve a better reputational profile
• Secure competitive advantage
• Improve environmental protection
• Comply with legislation

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