Role of-ict-in sustainabilty-sgd

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IT plays an important role on promoting sustainability. Various IT initiatives/solutions can go a long way in promoting the cause of sustainability. .

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Role of-ict-in sustainabilty-sgd

  1. 1. Role of ICT in Sustainable Freight Transport & Logistics Dr S G DeshmukhDr S G Deshmukh Director, ABV-Indian Institute of Information Technology & Management Gwalior deshmukh.sg@gmail.com International Workshop Next Generation Sustainable Freight Transportation 8 Aug 2013 at IIT Delhi
  2. 2. Opening quote…. “We do not inherit the earth from our ancestors, we borrow it from our children… Native American Proverb Source:Source: http://www.drury.edu/multinl/story.cfm?ID=11595&NLID=259www
  3. 3. Issues • How do we define sustainability? • Who are the stakeholders? • What are the impacts of ICT? • How to measure impact of ICT?• How to measure impact of ICT? • Can we develop a score card? • Action plan? 3
  4. 4. Issue 1 : Sustainability Sustainability The possibility that human and other forms of life on earth will flourish forever -- John Ehrenfeld, Professor Emeritus. MIT Sustainable Development (SD) Meeting the needs of the present generation without compromising the ability of futurewithout compromising the ability of future generations to meet their own needs -- Brundtland Commission, 1987 –
  5. 5. Core Concepts of Sustainability Futures Thinking Intergenerational responsibility, No-harmful effect Technology (Eco-)Systems Thinking Carrying capacity of the planet to absorb waste andCarrying capacity of the planet to absorb waste and support life without harming anyone Social Justice Equity, Basic services, Human values , Stakeholder voices, concern for all Economic, Environmental, Social/Cultural responsibilities of business/stakeholders
  6. 6. Sustainability Economic Leg Good Jobs Fair wages Security Social Leg Enabling working conditions Inclusive education Community & Culture Equitable justiceSecurity Infrastructure Fair Trade Equitable justice Environmental Leg Zero Pollution & Waste Energy Conservation Minimum disturbance to Mother Nature Source: Willard B, 2009, “The business case for sustainability”, Green innovations conference, www.sustainabiltyadvantage.com
  7. 7. Example : Sustainable Supply Chain Management (SSCM) • SSCM is all encompassing, strategic set of actions taken by collaborating partners and stakeholders of an ultimate supply chain to improve chain’s profitability along with mitigation/elimination of the detrimental impacts of all business activities spanning across the chain on the environment, society, culture,chain on the environment, society, culture, values, health and safety of all stakeholders and thereby ensuring the continuity of operations in the larger interests of all stakeholders. Apratul Shukla, 2011, Critical Analysis of Supply Chain Management in Indian Context: A Case of Suitability, Scalability and Sustainability, Ph D Thesis, IIT D
  8. 8. Sustainability in the context of Supply Chain • Deteriorating environmental condition • Role of complex, long and global supply chains in deterioration of the environment needs investigation. • Growing interest as managers are forced to deal with social and environmental issues, related to supply chain (Vachon and Klassen, 2006). • Every product generated, transported, used and discarded causes impact on the environment, (Greenen et al., 2006). • 3Ps and Triple bottom line (Elkington, 1994 )• 3Ps and Triple bottom line (Elkington, 1994 ) • Climate change and Supply chains activities are related. Corporate social responsibility Sustainable supply network management Supply chain environmental management Green purchasing strategies Environmental purchasing Green marketing Environmental marketing management and environmental product differentiation Reverse logistics Environmental management Life-cycle assessment ISO 14000- Certifications
  9. 9. Sustainable Supply Chain Activities Primary Industry Production Finished products distribution Retailing  Greener forms and factories  Soil, water, air contamination  Health and safety  Fair wages  Inbound distribution  Green fuel based vehicles  Full truck loads  Congestion  Vehicular pollution   Design for sustainability (DfS)  Life cycle cost analysis  Green and clean process  Consolidated loads  Reusable pallets and trays  Recycling of packaging  Sustainable product selection  Sustainability as differentiator  Proper Responsible Consumer  Recycle and reuse of products and packaging  Judicious use of product  Avoid over 9  Fair wages  Local community  Waste mgmt.  Prevention of bio-diversity  Emissions and working conditions  Energy efficient processes, technology, lighting and buildings pollution  Cold storage  Frozen and cold vehicles  Leaks and emissions during transport  Avoidance of child labour  Packaging waste  Fare wages  Equality for women workers process technology  Eco-friendly packaging  Waste management  Energy efficient machines and processes, buildings  Labour welfare  Health and safety  Wages  Lean manufacturing  Material usage  Water, soil and air pollution packaging material  Green fuel based vehicles  Reverse logistics  Energy efficient warehouses and cold storages and vehicles  Emission and leak control  Safety in material handling  Proper lebelling  Conformance to standards in storing and packaging  Energy efficient storages and buildings  Information sharing with customers  Health and safety  Carrier bags and packaging  Avoid over consumption  Energy saving devices  Use of take back system  Return of packaging material  Waste disposal  Change in habits and attitude  Social responsibility
  10. 10. Issue 2 Stakeholders : Sustainability Cloud Model EmployeesNGOs Food and Water Waste and Toxicity Social Justice Employees Customers Media Chain Members Solution Providers NGOs Academia Markets Governments Insurers The Public Investors Banks Nonfinancials / Reputation
  11. 11. ICT … • Information and communication technology (ICT) is a set of heterogeneous technologies (hardware and software) that allow for electronic communication, data collection and processing in distributed networks.processing in distributed networks. • ICT differs in complexity, ranging from simple electronic communication, like e-mail, to interactive and highly intelligent applications in traffic management and control systems, and in value webs. 8/10/2013 11
  12. 12. Various ICT Solutions Sn Solutions 1 Continuous communication (satellite, web based) 2 Goods monitoring 3 Information systems for inland navigation3 Information systems for inland navigation 4 Information systems for intermodal transport 5 Intelligent cargo information system 6 Traffic management of individual vehicle/fleet 7 Integrated Custom information system 8 Route Planning & Optimization System 8/10/2013 12
  13. 13. Issue 3: Impact of ICT solution - Information systems for Intermodal Transport Sn Impact 1 Reduced GHG , ozone depletionReduced GHG , ozone depletion 2 Promotion of green corridors 3 Return & recycle of empties 4 Efficient load factor 5 Paperless operations Effective monitoring8/10/2013 13
  14. 14. ICT Benefits 1 Mapping the location of vehicle on e-map 2 Control of engine parameters 3 Allowance for fuel consumption 4 Temperature & other parameter control4 Temperature & other parameter control 5 Online tracking of Cargo 6 Calculation of optimal routes 7 Electronic Documentation Management 8 Reporting of abnormalities 8/10/2013 14
  15. 15. Key logistics activities indicators (KPI) Sn KPI 1 Total Logistics cost 2 Quality of logistics services 3 Lead time in logistics cycle 4 Productivity (Infrastructure, personnel) 5 Investment in logistics infrastructure 6 Wastages 8/10/2013 15
  16. 16. Issue 4 Scorecard: Pyramid of “Value” Tangibles Financials Intangibles - Nonfinancial Reputation – Goodwill Brand Image Stakeholder Relationships Societal Impression Source: Willard, 2009, “The business case for sustainability”, Green innovations conference, www.sustainabiltyadvantage.com
  17. 17. Issue 4: Scorecard - Sustainable Pyramid Tangibles Financials 20% Intangibles Nonfinancials Reputation 80%
  18. 18. Scorecard in terms of .. • Environmental performance • Economic performance • Health & Safety performance • Societal performance• Societal performance • Cultural & Ethnic performance Each of the above to be evaluated for • Customer perspective, Internal perspective • Learning perspective, Financial perspective 8/10/2013
  19. 19. Sustainability Scorecard Environmental performance Economic Performance Vision and strategy for Health and Safety Performance  Customer perspective - Increase in product safety  Internal perspective - No. of accidents/ incidences/ year  Learning and growth  Customer perspective -Customer query time  Internal perspective Inventory turn over ratio  Customer perspective - Reduced packaging in %  Internal perspective - Reduction in material usage  Learning and growth perspective - EMS implementation  Financial Perspectives - % recycled material used Social Performance Economic Performance strategy for sustainability Cultural and ethnic Performance Health and Safety Performance  Customer perspective - Code of conduct and ethical guidelines  Internal perspective - Use of child labour  Learning and growth perspective -Social auditing  Financial Perspective - Fare wage scheme  Customer perspective - Increased pride  Internal perspective - Employment to minorities  Learning and growth perspective - No of events arranged  Financial perspective - Cost of culture conscious initiatives  Learning and growth perspective - Information transparency  Financial perspective - % of revenue allocated to H &S ratio  Learning and growth perspective Employee training yearly  Financial Perspectives Return on Investment
  20. 20. Issue 5: Action Agenda.. 1. Improve the accounting in order to highlight the costs associated with ICT operations 2 Develop a comprehensive methodology for assessing the impact of ICT solutions on totalassessing the impact of ICT solutions on total logistical costs. 3 Develop a methodology for evaluating the use of investments in logistics infrastructure 4. Evolve a multi-stakeholders’ perspective
  21. 21. Implications.. • Interpretation of sustainability – Addressing key business issues in logistics • Role of IT – As an enabler, as a catalyst for reduction of waste and as an integratorreduction of waste and as an integrator • Engage and partner with stakeholders • Make connections & integrate sustainability within and across our business • Huge challenge – policy integration and intergenerational equity
  22. 22. Challenges.. • Interoperability • Sharing between Public and Private • Security issues • Standardization of protocols• Standardization of protocols Industry & Academia collaboration is a “must “ for the above. 22
  23. 23. Observations.. • Sustainability using ICT offers a challenge : As a change driver, as a stimulus for innovation • Addressing social issues by creating shared value will lead to self-sustaining ICT solutions that do not depend on private or government subsidies.depend on private or government subsidies. • A balanced scorecard need to be evolved • “When a well-knit business applies its vast resources, expertise, and management talent to sustainability problems , it can have a greater impact on social good”…* • *“The Link Between Competitive Advantage and CSR” Michael E. Porter and Mark R. Kramer, Harvard Business Review, December 2006
  24. 24. Closing remarks.. • We can start now & We must start now ! • Think of sustainability as a strategy and not as an initiative • Focus on long term picture not just ROI• Focus on long term picture not just ROI
  25. 25. Useful resources www.tomorrowscompany.com www.sustainability.com www.sustainabilityresearch.org (Research Network for Business Sustainability) • Shukla, A.C., Deshmukh, S.G. and Kanda, A. (2009),” Environmentally Responsive Supply Chains: Learnings from Indian Auto Sector” Journal of Advances in Management Research, Vol. 6, No. 2, pp. 154-171. • Shukla, A.C., Deshmukh, S.G. and Kanda, A. (2010), “Flexibility and Sustainability of Supply Chains: Are They Together?” Global Journal of Flexible Systems Management, Vol.11, Nos.1 & 2, pp 25-38.
  26. 26. Thank you very much ! deshmukh.sg@gmail.com

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