„Decision Making in Transportation Processes as a Support for Sustainable stewardship “ Requirements and Possibilities for Transport Process Evaluation Department of Business Management and Economics, Chair of Business Administration, esp. Environmental Management Waterloo, 16 th June 2007 Edeltraud Guenther, Vera Farkavcová

Chair of Business Administrationslide 2 of 14 Environmental Management Content 1.Responsibility of enterprises for sustainable stewardship in transportation 2.Instruments supporting sustainable stewardship of transportation in enterprises 3.Software solutions for an environmental evaluation of the transport processes 4.Development of an ETIENNE-Tool for an environmental evaluation of logistic process 5.Implementation and use of ETIENNE-Tool 6.Conclusion

Chair of Business Administrationslide 3 of 14 Environmental Management Responsibility of enterprises for sustainable stewardship in transportation Sourcing raw materials Componenets or sub-assemblies Production line WholesalerRetailersCustomer Transport processes are essential parts of the supply chain and perform flow of materials that connects an enterprise with its suppliers and with its customers. Supply Chain Management (SCM) concept Includes coordination and collaboration with chain partners, which can be suppliers, intermediaries, third-party service providers, and customers. Integrates supply and demand management within and across companies. Planning and management of all sourcing and procurement, conversion activities as well all logistics management activities. Logistic process/management (According to: Council of Supply Chain Management Professionals (2007). Online: Date of acces: May 23 rd, 2007.)

Chair of Business Administrationslide 4 of 14 Environmental Management Relevance of logistic processes - Transport growth EU (25) (Notes: (1) - passenger cars, powered two-wheelers, buses & coaches, tram & metro, railways, air, sea; (2) - road, sea, rail, inland waterways, pipelines, air; GDP- at constant 1995 prices and exchange rate) (According to European Commission (2006a). Online: Date of access: May 24 th, 2007.)

Chair of Business Administrationslide 5 of 14 Environmental Management Hurdles in transport process optimization Economic risk Lack of acceptance in the own enterprise Difficulties to integrate the environmental aspects into the planning processes Lack of consumer acceptance Quality and price disadvantages in of environmentally friendly vehicles Difficulties to consider environmental aspects parallel with other criteria Question: What hurdles do you see for an environmentally oriented design and controlling of your transport processes? (Survey within the project ETIENNE - Efficient Transports Chains in Disposal Networks - Unitized and Ecologically Designed, for further information see: dresden.de/wwbwlbu/forschung/abgeschlossene_projekte/etienne/en/frame.htm ) dresden.de/wwbwlbu/forschung/abgeschlossene_projekte/etienne/en/frame.htm

Chair of Business Administrationslide 6 of 14 Environmental Management Instruments supporting sustainable stewardship of transportation in enterprises goal and scope definition goal definition system boundary functional unit 1 interpretation priorities ecological optimization sensitivity analysis 4 impact assessment classification characterization normalization to evaluate the significance 3 inventory analysis material and energy flows - with associated environmental releases - over the product life cycle qualitative aspects 2 (According to: Deutsches Institut für Normung e.V. (Ed.) (2006): Environmental management – Life cycle assessment – Principles and framework (ISO 14040:2006). German and English version EN ISO 14040:2006. Berlin. October P. 22.)

Chair of Business Administrationslide 7 of 14 Environmental Management passenger transport no LCA methodology too expensive Software solutions for an environmental evaluation of the transport processes Considered criteria Type Evaluation scope Environmental aspects Data basis Methodology used (LCA) Availability UmweltMobilCheck EVALENT EcoTransIT SimaPro7 Umberto Software tools

Chair of Business Administrationslide 8 of 14 Environmental Management Development of an ETIENNE-Tool for an environmental evaluation of logistic process - Databases for inventory analysis INPUT energy OUTPUT emissions into air transport process CO2 SO2 CO Nox NH3 CH4 N2O NMVOC particle energy consumption Ökoinventar Transporte The Handbook Emission Factors for Road Transport (HBEFA ) Global Emission Model for Integrated Systems (GEMIS ) Traffic Emission Estimation Model (TREMOD) The ecoinvent Database Databasis analysis Considered criteria: Data sources (country) Function and valuation possibilities Kind of transport Main environmental aspects Considered years/last update Availability - literature/language Inventory analysis

Chair of Business Administrationslide 9 of 14 Environmental Management Selection Instruments supporting sustainable stewardship of transportation in enterprises - Evaluation methodology selection Ecopoints (ecological scarcity) Material Input per Service Unit (MIPS) UBP Impacts indicators (UBA approach ABC evaluation Critical Voluminous CED - Cumulative Energy Demand Verbal evaluation CML 2 baseline method (2000) Problem orientated approach Eco-Indicator 99 (95) Consideration of Inputs Consideration of Outputs Data availability Results expressiveness Multi / one dimensional Consideration of all environmental media Quantitative / qualitative Methodology Criteria

Chair of Business Administrationslide 10 of 14 Environmental Management Implementation and use of ETIENNE-Tool STEP 4a: Life cycle inventory analysis STEP 4b: Economic data STEP 5a: Ecological evaluation STEP 5b: Economic evaluation STEP 6: ecological and/or economic assessment STEP 3: Transport chain determination STEP 2: Transport alternatives STEP 1: Transport task

Chair of Business Administrationslide 11 of 14 Environmental Management Implementation and use of ETIENNE-Tool STEP 2: Transport alternatives STEP 3: Transport chain determination Kind of transport Transport distance Type of the way Loading Pric e Alternatives

Chair of Business Administrationslide 12 of 14 Environmental Management Implementation and use of ETIENNE-Tool STEP 6: ecological and/or economic assessment

Chair of Business Administrationslide 13 of 14 Environmental Management Conclusion Flexible Tool not only for the waste management enterprises Software application on the Access level Expansion of evaluated objects reloading, air transportation Deeper economic evaluation application of economic method

Chair of Business Administrationslide 14 of 14 Environmental Management Thank you for your attention! The Technische Universität Dresden is validated according to the EMAS regulations since January 2003, revalidation in December Information:

Chair of Business Administrationslide 15 of 14 Environmental Management Responsibility of enterprises for sustainable stewardship in transportation Field of the company Decision making MANAGEMENT SYSTEM Realisation and checking Bewertungstool die technische Umsetzung mit EXCEL Logistic System of objectives Environmental policy Environment protection Betroffenheit Ecological Concernment External environment: Legal conditions Technological conditions Economic conditions Task environment: Customers Suppliers Competitors Fulfilment of the task Task Evaluation tool (a technical support in EXCEL)

Chair of Business Administrationslide 16 of 14 Environmental Management Relevance of logistic processes - Energy consumption by sector and CO2 emissions by sector (Notes: Mtoe Tonne of oil equivalent; (1) Includes "own use" by power and heat generation sector) (According to European Commission (2006). Online: Date of access: May 24 th, )

Chair of Business Administrationslide 17 of 14 Environmental Management Hurdles in transport process optimization Energy consumption Material emissions (e.g.oil, waste water) Loading grade of vehicle Noise Direct emissions into air Environmental risk / transport safety Environmentally friendly power sytems No environmental evaluation Question: Which criteria do you use to assess environmental impacts of your transport processes?

Chair of Business Administrationslide 18 of 14 Environmental Management Hurdles in transport process optimization Depending on higher acceptance of their environmental management by customers, suppliers etc. Depending on an increased political acceptance of environmental management in terms of tax reduction or subsidies etc. Depending on the specific economic development of the enterprise Depending on the possibility to enlarge the own indirect competitive advantage Question: On which factors does depend your further environmental commitment?

Chair of Business Administrationslide 19 of 14 Environmental Management Implementation and use of ETIENNE-Tool STEP 1: Transport task Start Direction Amount to transport Goods to transport

Chair of Business Administrationslide 20 of 14 Environmental Management Implementation and use of ETIENNE-Tool STEP 4a: Inventory analysis STEP 4b: Economic data Transport costs Emissions into air Energy consumption

Chair of Business Administrationslide 21 of 14 Environmental Management Implementation and use of ETIENNE-Tool STEP 5a: Ecological evaluation STEP 5b: Economic evaluation - Energy consumption (KEA) - Impact indicators method - Eco-points method Total price