Group project instructions (15%)

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Northern Alberta Institute of Technology *

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3355

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Management

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Apr 3, 2024

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docx

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Uploaded by GeneralGoldfinch3917

Group Project Presentation (15%) Presentation Duration: 30 Minutes Maximum Number of Group Members: 4 Students Maximum ============================================== Green Logistics Project: Challenge students to develop a green logistics strategy for a company or industry. They should focus on reducing carbon emissions, optimizing transportation routes to minimize environmental impact, and implementing sustainable packaging and distribution practices. Objective: The most important or primary objective of this project is for students to develop a sustainable logistics strategy that reduces carbon emissions, minimizes environmental impact, and promotes eco-friendly practices within a specific company or industry. By working or structuring the Green Logistics Project, students will gain valuable experience in applying sustainability principles to real-world logistics and transportation challenges. They will also learn how to balance environmental objectives with practical considerations like cost and feasibility, which are essential skills for future professionals in the field of supply chain management and logistical practices. Important Project Steps: 1. Company or Industry Selection: Assign each group a real-world company or industry to work with. Ideally, choose organizations that are relevant to the students' interests or career aspirations. For example, students can select companies in sectors like retail, manufacturing, e-commerce, or food distribution. You have the option to work with either a real-world company or an imaginary one, depending on the availability of resources and your project's objectives. Real-World Company: If possible, partnering with a real company provides students with a more authentic experience. But this may require establishing a collaboration or internship program with a local business. Imaginary Company: Using an imaginary company allows for greater flexibility and creativity in shaping the project's parameters. You can tailor the company's characteristics to fit the specific learning outcomes and goals of the course. Relevance: (1) Ensure that the selected company aligns with the course's focus on logistics and transportation and the overarching theme of sustainability. It should be a company or industry that relies heavily on logistics and has room for improvement in terms of environmental impact. (2) Prioritize industries that are known for their environmental impact or are actively pursuing sustainability initiatives. Examples include e-commerce, food and beverage, retail, automotive, or manufacturing. (3) Ensure that there is enough accessible information or data on the industry's logistics and transportation practices. The availability of data will be crucial for the current state analysis and research phases of the selected project.

2. Current State Analysis: Have students conduct an analysis of the company's or industry's current logistics and transport practices. This should include examining their supply chain processes, transport modes, packaging materials, energy consumption, and carbon emissions.  Carbon Emissions: Calculate the company's current annual carbon emissions from transportation activities, including deliveries to customers, inbound shipments from suppliers, and returns. Identify the main sources of emissions (e.g., delivery vehicles, transportation distances, packaging materials). Analyze historical data to understand trends in emissions. Example: EcoTraders currently emits 5,000 metric tons of CO2 each year. Most of this pollution comes from the trucks used for delivering products and the transport of goods from suppliers to EcoTraders' warehouses.  Transportation Modes: Assess the primary modes of transportation used for shipping products (e.g., ground shipping, air freight). Determine the average fuel efficiency of the delivery fleet (e.g., miles per gallon for trucks). Evaluate the use of third-party carriers and their environmental practices. Example: EcoTraders mainly uses trucks for delivering products to customers and occasionally uses air freight for faster shipping. They also work with third-party companies to handle some of their deliveries, but these partners don't have strong environmental practices.  Packaging Materials: Review the types of packaging materials used for shipping products (e.g., cardboard boxes, plastic bubble wrap). Quantify the amount of packaging waste generated by the company. Consider the recyclability and sustainability of packaging materials. Example: The selected company primarily uses cardboard boxes for packaging, which is good because they are recyclable. However, they also use a fair number of plastic materials for protecting products during shipping. Unfortunately, only 15% of the packaging waste is currently being recycled, and most of it ends up in the trash. This is not a good practice.  Energy Consumption: Examine the energy consumption within company warehouses and distribution centers. Assess the energy sources used (e.g., electricity, natural gas) and their environmental impact. Identify opportunities for energy efficiency improvements. Example: In EcoTraders' warehouses and distribution centers, they mainly use electricity from the grid and natural gas for heating. About 70% of their energy comes from the grid, and 30% from natural gas. There's room for improvement in using energy more efficiently. There might be other alternatives.  Waste Management: Analyze the company's waste management practices, including recycling and disposal of packaging materials. Calculate the percentage of waste that is currently being recycled. Identify areas for waste reduction and recycling improvement. Example: The company has limited recycling programs, and they don't do much to reduce waste. Only 15% of their waste materials are currently being recycled, which means most of it goes to landfills. This needs improvement.

 Sustainability Initiatives: Document any existing sustainability initiatives or certifications (e.g., ISO 14001, LEED certification for buildings). Review employee training and awareness programs related to sustainability. Assess the company's commitment to sustainability reporting and transparency. Example: EcoTraders doesn't have any sustainability certifications, and they provide minimal training to employees on environmental matters. So, there is room for improvements.  Customer Feedback: Gather and analyze customer feedback related to packaging materials, delivery times, and eco-friendliness of products. Identify areas where customer concerns or preferences align with sustainability goals. Example: Customers have expressed concerns about the excessive use of packaging materials and longer delivery times. They can share customer feedback with you.  Regulatory Compliance: Ensure that the company is compliant with local and international environmental regulations related to logistics and transportation. Evaluate any potential risks associated with non-compliance. Example: The company follows local environmental laws, but they could do more to adopt sustainability practices voluntarily. They can provide you with information on their current deficiencies.  Competitive Benchmarking: Compare the company’s sustainability practices with those of competitors in the industry. Identify areas where the company can gain a competitive advantage through sustainability efforts. Example: Compared to competitors in the e-commerce industry, EcoTraders lags behind in terms of sustainability efforts, which could affect their competitiveness in the market.  Cost Analysis: Determine the current costs associated with logistics and transportation, including fuel, maintenance, packaging materials, and waste management. Understand the financial impact of the current logistics practices on the company's bottom line. Example: EcoTraders spends around $2.5 million annually on logistics (shipping and transportation). There's potential to save money by making their logistics operations more environmentally friendly. Such companies have financial data. 3. Identify Sustainability Goals: In collaboration with the assigned company or industry, students should set clear sustainability goals. These detailed or clear goals should be specific, measurable, and aligned with reducing environmental impact. For instance, reducing CO2 emissions by a certain percentage, minimizing packaging waste, or optimizing transportation routes to reduce fuel consumption. Example: After initial discussions with EcoTraders, the student group sets the following sustainability goals: (1) Reduce carbon emissions from the delivery fleet by 20% within one year; (2) Achieve a 50% recycling rate for packaging materials; (3) Implement a sustainable supply chain certification program in the future.

4. Research Sustainable Solutions: Encourage students to research and propose sustainable logistics solutions. This may involve exploring technologies such as electric or hybrid vehicles, alternative fuels, route optimization software, or sustainable packaging materials. They should also consider eco-friendly practices such as recycling, waste reduction, and energy-efficient operations. Example: The student group explores various green logistics solutions: (1) Recommends or suggests transitioning to an electric vehicle fleet for last- mile deliveries; (2) Proposes the use of biodegradable and recyclable packaging materials; (3) Suggests or proposes incorporating route optimization software to reduce fuel consumption. 5. Cost-Benefit Analysis: Have students conduct a cost-benefit analysis to assess the financial implications of implementing their proposed green logistics strategy. This should include estimating the initial investment, ongoing operational costs, and potential cost savings over time. Example: The group conducts a cost-benefit analysis for the proposed changes: (1) Estimates the cost of buying electric delivery vehicles and installing charging structure; (2) Projects savings from reduced fuel and maintenance costs; (3) Calculates the potential return on investment (ROI) for implementing the green logistics strategy or idea. 6. Implementation Plan: Students should outline a detailed plan for implementing their green logistics strategy. This plan should include a timeline, responsibilities, and key performance indicators (KPIs) to track progress. Example: The student group outlines a detailed plan for implementing their green logistics strategy: (1) Creates a timeline specifying when electric vehicles will be acquired and charging stations installed; (2) Assigns responsibilities for overseeing the transition to sustainable packaging materials; (3) Sets up KPIs, such as monitoring emissions reductions and recycling rates, to track progress. 7. Environmental Impact Assessment: Ask students to calculate and project the environmental impact of their proposed changes. This could include estimating the reduction in carbon emissions, waste reduction, and any other relevant environmental metrics. Example: Students calculate the anticipated environmental impact of their proposed changes: (1) Estimate a 25% reduction in carbon emissions by transitioning to electric vehicles; (2) Predict a 50% reduction in packaging waste going to landfills; (3) Quantify the reduction in energy consumption and associated carbon emissions from using sustainable packaging. 8. Presentation and Recommendations: Each group should present their findings, strategy, and recommendations to the class. They should emphasize the environmental benefits, cost savings, and potential challenges of implementing their green logistics strategy. Example: The group presents their findings and recommendations to EcoTraders: (1) Emphasizes the environmental benefits, such as reduced emissions and less waste; (2) Highlights cost savings and potential competitive advantages; (3) Discusses mitigation strategies.

============================================== A Sample “Current State Analysis” ============================================== EcoLogistics Corp. currently operates a fleet of 50 diesel-powered delivery vehicles for last-mile logistics, serving urban and suburban areas. The analysis of the current state provides an overview of the company's existing transportation practices and their environmental impact. 1. Fuel Consumption and Emissions: EcoLogistics Corp. consumes an average of 10,000 gallons of diesel fuel annually for its delivery fleet. The current fleet generates an estimated 300 metric tons of carbon emissions per year, contributing to air pollution and climate change. 2. Vehicle Efficiency: The existing diesel vehicles have an average fuel efficiency of 8 miles per gallon, indicating inefficiencies in fuel usage. Maintenance costs for diesel engines are relatively high due to the need for regular oil changes and diesel particulate filter maintenance. 3. Routing and Delivery Practices: Route planning is primarily manual, leading to suboptimal routes and inefficient fuel consumption. There is a lack of real-time tracking and route optimization, resulting in delays and increased fuel usage. 4. Packaging Waste: EcoLogistics Corp. utilizes traditional packaging materials, including non- recyclable plastics and excess cardboard, contributing to significant packaging waste. Packaging waste disposal costs are rising, and there is a need for more sustainable packaging practices. Overall Assessment: The analysis of the current state reveals significant opportunities for improvement in reducing carbon emissions, optimizing fuel consumption, and adopting sustainable packaging practices. Transitioning to electric vehicles, implementing route optimization software, and adopting eco-friendly packaging materials are identified as key strategies to address these challenges. This analysis provides an understanding of EcoLogistics Corp.'s current transport practices and their associated environmental and operational challenges. It serves as a foundational step in developing a sustainable logistics strategy for the company. Data Accuracy: The analysis is based on data obtained from the company's records, including fuel consumption reports, maintenance logs, and packaging material inventory. Data accuracy has been validated through cross-referencing with industry benchmarks and external sources. ==============================================

A Sample “Cost and Benefit Analysis” (ROI Calculation) ============================================== 1. Cost of Transitioning to Electric Vehicles:  Initial Investment: $2,000,000: This includes the purchase of electric delivery vehicles and the installation of charging infrastructure at distribution centers.  Annual Maintenance and Charging Costs: $400,000: Maintenance costs for electric vehicles are lower than for traditional vehicles, but there is an annual cost associated with charging infrastructure maintenance. 2. Cost of Route Optimization Software:  Annual Licensing and Support Fee: $50,000: The software will help optimize routes, reduce fuel consumption, and improve efficiency. 3. Cost of Sustainable Packaging Materials:  Initial Investment: $100,000: This covers the transition to sustainable packaging materials and the purchase of eco-friendly packaging inventory.  Annual Packaging Material Costs: $60,000: Sustainable packaging materials may have a higher per-unit cost compared to traditional materials. 4. Total Costs = Initial Vehicle Investment + Annual Maintenance and Charging Costs + Route Optimization Software Costs + Initial Packaging Material Investment + Annual Packaging Material Costs 5. Expected Savings:  Fuel Cost Savings: $300,000 per year: Transitioning to electric vehicles reduces fuel costs significantly due to lower electricity costs compared to gasoline or diesel.  Maintenance Cost Savings: $100,000 per year: Electric vehicles generally have lower maintenance costs, including savings on oil changes, brake replacements, and other engine-related expenses. 6. Environmental Benefits: Carbon Emission Reduction: Estimated 25% reduction in carbon emissions compared to the use of traditional vehicles. 7. Total Savings = Fuel Cost Savings + Maintenance Cost Savings

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