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Carbon management in the supply chain Mike Bernon.

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Presentation on theme: "Carbon management in the supply chain Mike Bernon."— Presentation transcript:

1 Carbon management in the supply chain Mike Bernon

2 The scope….. Plan SourceMakeDeliver Return Design Disposal Consumer Product life cycle is important because……

3 The major impacts may be beyond our part of the supply chain… Reduced energy consumption during consumer washing (up to 75% of PLC energy can be in washing) 30-40% less energy in manufacturing (source P&G) Packaging reduction of 14 – 45% (source P&G) Half the number of vehicle movements needed (source P&G)

4 Industry sector……… Depending on the report, the global cement industry is responsible for between 5-9% of total CO2 The FAO report found that current production levels of meat contribute between 14 and 22 percent of the 36 billion tons of "CO2-equivalent" greenhouse gases the world produces every year. Source: United Nations Food and Agriculture Organization (FAO)

5 Carbon Management Scope – levels 1,2 & 3 CO2 or CO2e And how do we account for it

6 Tesco’s carbon footprint Source; Tesco.com accessed 28/1/08

7 Carbon footprint by product / unit

8 However considering logistics impacts….. –Transport accounts for 20 to 24% of UK carbon emissions –Aviation climate change effects worldwide could increase by % 1992 – 2050 –Vehicle trip distance lengthening –Modal switch away from train/sea to lorry and air –24% of all UK food vehicle kilometres run empty (Freight best practice) –And 74.8% deck utilisation

9 Some simple examples of abatement….

10 Transport Improved maintenance Energy efficient tyres 10% difference between best & worst performing Alternative fuels Advanced vehicle routing & scheduling Driver training & behaviour 7% fuel saving Aerodynamic design 16% more load 10% fuel saving 20% CO2 reduction Tyre pressure

11 Vehicle fill ISO packaging Shipping unit Vehicle unit

12 Warehousing Wind turbine 50% of lighting G.Park Blue Planet in Staffordshire delivers environmental benefits & reduce total energy and water cost in use savings of up to £300,000 per annum.” Recycled concrete aggregate Better insulation Solar pre-heating for water Photovoltaic panels Optimisation of roof lights Energy efficient lighting ‘Green roof’

13 Modal switch All variants of SkyCat consume as much as 70% less fuel per tonne kilometer than conventional aircraft

14 Advanced planning & collaborative networks - IGD

15 Thank you for listening Senior Lecturer Cranfield Centre for Logistics & Supply Chain Management Cranfield School of Management # xt2573 Mike Bernon

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17 CO2 reduction BMW USA The recycled methane gas from a local landfill site that we get not only provides energy for 50% of the plant's total energy, but it also helps us reduce energy costs. Source: BMW website accessed Feb 2009


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