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

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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. Issue 4:
Scorecard - Sustainable Pyramid
Tangibles
Financials
20%
Intangibles
Nonfinancials
Reputation
80%

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. 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. 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. 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. 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. 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. 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. 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. Thank you very much !
deshmukh.sg@gmail.com