Welcome back Readers I’m Sivakami - A final year MBA student from Amrita School Of Business majoring in Marketing and operations. I have found my space to explore on the various verticals in the area of Logistics and supply chain and of course not limited to theories and empirical studies 😅. So come lets discover on our never ending territory 😇
It is so fascinating to know how companies integrate eco friendly measures into the supply chain process, from product design to procurement, and from product delivery to end-of-life disposal. We all know that when it comes to last mile delivery or supply chain, it is an extremely carbon intensive process. However, it is not merely the “last mile” of the logistics process, the delivery, which adds to our carbon footprints but every step of the process: from when a product was manufactured, all the way to when it makes it into our hands. In fact, When a package from an e-commerce shopping cart arrives on the doorstep, how many of us think about where it came from? Obviously not many of us . Perhaps even fewer will think about the carbon footprint generated through all of the steps it took to get the package to our doors.
But companies on the other hand take a lot of initiatives to lessen the blow. Green supply chain management! Green supply chain management integrates eco-friendly measures into the entire supply chain process, It is impossible for one party to achieve this on their own. Rather, green supply chain management requires an integrated stakeholder approach, ensuring that every activity in the supply chain is more sustainable.
One such company is JD.com, as China’s largest retailer and a leading logistics provider, is pioneering the ecosystem approach to green supply chain management in China. JD and its partners including P&G, Nestle, Lego, Unilever, WWF and more in 2017 jointly implemented a number of decarbonizing actions under the “Green Stream Initiative” throughout the supply chain. Some of the concrete actions that have been taken to ensure responsible consumption, transportation and disposal, include:
1. Package design
It might be insignificant if we say that we are securing an amount of tape used for a single package. But what if we are talking about the 63 billion parcels in circulation in China’s logistics industry in 2019? In fact narrowing the tape, from 54mm to 45mm as JD did four years ago, can make a big difference. By adopting slimmer tape over 15% of total tape used has been saved. Given the massive amount of packages JD generates, the company estimates that at least 100 million metres of tape can be reduced each year.
JD also initiated a green packaging standards alliance and a green packaging R&D centre in collaboration with partners, both of which are a first for the industry, and contribute to building awareness and standardization of green packages in the e-commerce and logistics industry.
2. Procurement
One of the collective goals for the upstream and downstream partners in the supply chain ecosystem is minimizing secondary packages and waste. One solution to this is using packaging boxes that can be circulated throughout the ecosystem.
At the same time, by closely working with upstream partners, employing measures such as co-designing packages with manufacturers, or moving our packaging operations into manufacturers’ premises and more direct shipment can greatly improve operational efficiency and reduce packaging waste. Consumer goods giant P&G has now fully adopted original packaging delivery in all its e-commerce operations in China.
3. Green warehousing
Behind an efficient logistics operation are large-scale, highly-automated warehouses. How to power those warehouses to ensure that they can meet the needs of the business, without causing a massive amount of pollution is a key consideration. JD, Asia No. 1 logistics fulfillment center in Shanghai, a massive distributed photovoltaic power generation system has been built, supplying electricity for the highly automated warehouses and connecting to the power grid. It is expected that by 2030, the power generation area will reach 200 million square metres, becoming the largest powerhouse of clean energy of this kind.
In some of the automated areas, robots can operate in the dark, so there is no need for lighting systems. The rain collection system below the warehouses serves as a water reservoir for irrigation use in green areas of the fulfillment center. Inside the warehouses, as well as JD’s delivery stations are going paperless by using electronic order slips, which saves a large amount of paper.
4. Transportation
JD has introduced more than 5,000 self-operated electric vehicles in 50 cities across China. Over 1,600 charging terminals have been installed across the country. Electric motorcycles are used by many of the couriers during the last-mile delivery process, further helping to reduce CO2 emissions and traffic congestion.
5. Product delivery
Products can be delivered in recyclable boxes which can be used repeatedly in the packaging, distribution and delivery phases. JD incentivizes the customers to participate in joining the box recycling programme with loyalty points and rebates.
6. End-of-life product management
In order to track and give many used products a fruitful second life, JD has used its digital platform and logistics to ensure that used products, such as clothes, toys, books and more make it to their new homes. Some of these products are reused by charity organizations, some are recycled by professional recycling institutions, and some are redesigned into new products.
On the whole, cooperation aims to help more people understand the value of recycling and help shape their daily behavior, including waste sorting, recycling and sustainable consumption.
Happy reading from Sivakami :)
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