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Design and Control of Low-Carbon Supply
     Chains 2050 – Projects at LTH

           Transportforum, Linköping
                January 13, 2010

                 Ali Pazirandeh
              Fredrik Eng Larsson

             Engineering Logistics
               Lund University
The Logistics Sustainability Research
Team at Lund University
Engineering Logistics                                  Production Management
Sten Wandel                                            Johan Marklund
Ali Pazirandeh                                         Olle Stenius
Fredrik Eng Larsson
                                                       Environmental and Energy
Packaging Logistics                                    Systems
Henrik Pålsson                                         Lars J Nilsson
Sandra Silgård Casell
Maisam Abbasi                                          Social and Economic Geography
                                                       Lars-Olof Olander
Traffic and Road                                       Karl-Johan Lundquist
Lena Hiselius



Lund University / Department of Industrial Management and Logistics
Current Projects

• Design and Control of Sustainable Supply Chains
• LETS2050 Goods
• EcoMobility




Lund University / Department of Industrial Management and Logistics
Current Projects

• Design and Control of Sustainable Supply Chains
• LETS2050 Goods
• EcoMobility




Lund University / Department of Industrial Management and Logistics
Design and Control of Sustainable Supply
Chains

• Purpose: Design and control of supply chains with products
  of high value and short life cycles for low carbon transport

• Focus: location of nodes and process, alternative transport
  links, production and inventory control

• SEK 6 M, 2008-2010, six people from two disciplines




Lund University / Department of Industrial Management and Logistics
Design and Control of Sustainable Supply
Chains (2)

1. Supply Chain Design
   – Case studies, action
     research, surveys, delphi
     studies, expert panels

2. Inventory Control
   – Analytical modelling

3. CO2 calculation tool



Lund University / Department of Industrial Management and Logistics
Design and Control of Sustainable Supply
Chains (3)

• SC Design
   – Packaging postponement: 300100 g.
   – Early orders on ship/rail instead of air

• Inventory Control
    – Multi-stage

• CO2 calculation tool
   – NMT refined



Lund University / Department of Industrial Management and Logistics
Current Projects

• Design and Control of Sustainable Supply Chains
• LETS2050 Goods
• EcoMobility




Lund University / Department of Industrial Management and Logistics
LETS2050
• Purpose: To find radical and innovative solutions and
  regulatory measures to reduce CO2 emissions by 2050

• Focus: alternative end states and routes to 2050, possible
  conflicts, policy instruments, business models and
  incentives

• SEK 36 M, 2009-2012, appr 30 people from 10 disciplines




Lund University / Department of Industrial Management and Logistics
LETS2050 Goods (2)

•     LETS2050 Goods is a Work Package in LETS2050:


                                                                        Map, synthesize and
                                                                        interpret existing knowledge
                                                                        of the relation between
                                                                      Synthesize knowledge of existing
                                                                      Identify critical factors and
                                                                      regulatory actions for the
                                                                        goods transport and
                                                                      alternative measures and  the
                                                                        environment
                                                                      develope new with enough
                                                                      interaction between business,
                                                                      leverage to make goods
                                                                      authorities and consumers
                                                                      transports sustainable
                                                                      during the implementation of
                                                                      proposed solutions


    • SEK 8 M, 2009-2012, appr 10 people from 4 disciplines



Lund University / Department of Industrial Management and Logistics
LETS2050 Goods (3)

•     Approaches:
      –     Future studies: Backcasting from 2050 scenes,
            Forecasting, Delphi studies
      –     Case studies
      –     Surveys
      –     Expert panels


•     Interesting Results:
      –     Gap between forecasting and backcasting
      –     Technic fix or forced behavioural change
      –     Formula for macro and micro connections

Lund University / Department of Industrial Management and Logistics
LETS2050 Goods (4)

• WIP:
                                   ton tonkm v ehiclekm    kWh     CO2emissions
 CO2emissions GDP
                                  GDP    ton   tonkm    v ehiclekm    kWh


                                        Macro                         Micro
CO2




                                                                  2050 Target


                           2030                      2050

Lund University / Department of Industrial Management and Logistics
Current Projects

• Design and Control of Sustainable Supply Chains
• LETS2050 Goods
• EcoMobility




Lund University / Department of Industrial Management and Logistics
EcoMobility

• Purpose: To reduce CO2 emissions from logistics activities
  in the Öresund region

• Focus: exchanging, collecting, and creating knowledge
  about EcoMobility (an efficient and effective transport
  system with low climate impact) within the region

• EUR 2 M, 2009-2012, appr 50 people from 10 disciplines




Lund University / Department of Industrial Management and Logistics
EcoMobility (2)

                                                   1. TVN1: Green Logistics Hub
                                                      – Green Corridors
                                                      – Design and Control of
                                                         Sust. SC
                                                      – LETS2050 Öresund

                                                   2. TVN2: City Transport

                                                   3. TVN3: Energy Carriers and
                                                      Technology Systems


Lund University / Department of Industrial Management and Logistics
EcoMobility (3)

•     Approaches (for the Green Logistics Hub):
      –     Case studies to implement best practice
      –     Pilot Green Corridor


•     Interesting Results:
      –     Green business opportunities
      –     Prallel and sequential co-modal transport
      –     Greener and longer trucks and trains




Lund University / Department of Industrial Management and Logistics
Project         Context    Purpose         Focus Areas            Approach         Subprojects     Time      Budget        No of            Interesting
                                                                                                   plan                    people           results
                                                                                                                           involved
Design and      Industry   Design &        Location of            Case studies,    1. SC Design    Start:    SEK 6 M       Appr 6           Packaging
control of      driven     control for     nodes, process,        action           2. Inventory    2008-07   paid for by   people from      postpone-
sustainable                sustainabilit   type of links,         research,        control                   NGIL and      the              ment 300 
supply                     y of supply     production and         surveys,         3. CO2          Finish:   its partner   Engineering      100g., early
chains                     chains for      inventory control      delphi           Calculation     2010-12   companies     Log. and         orders on
                           products        for sust. transport    studies, and     tool                                    Production       ship/rail,
                           with short                             expert panels                                            Management
                           product life
                           cycles

LETS2050        Swedish    To find         Alternative routes     Future           1. Goods        Start:    SEK 8 M       Appr 30 from     Gap between
Goods           govern-    radical and     to 2050 scenes.        studies.         transport       2009-12   paid for by   Engineering      forecasting
                ment       innovative      Indentify conflicts.   Forecasting      accessibility             Vinnova,      Log.,            and
                and EU     solutions       Policy                 and back-        and SC          Finish:   Road          Packaging        backcasting,
                driven     and             instruments.           casting from     structure       2012-12   administrat   Log., Cultural   technic fix or
                           regulatory      Business models,       2050 scenes      2. Control                ion,          Geography,       forced
                           measures        incentives, and        as well as       systems,                  Energy        Traffic and      behvioural
                           to reduce       evaluation             case studies,    models and                agency,       Road,            change,
                           CO2             models                 surveys,         policy                    Environme     Trivector,       formula for
                           emissions                              delphi           3.                        nt            Energy and       macro and
                           by 2050                                studies, and     Implementatio             protection    Environment      micro relation
                                                                  expert panels    n challenges              agency
                                                                                   and dilemmas

EcoMobility     Öresund    Reduce          Exchange,              Case studies     1. City         Start:    EUR 2 M       Appr 50 from     Green
                develop-   CO2             collect, and           to implement     Logistics       2009-05   paid for by   LU, DTU,         business
                ment       emissions       create knowledge       best             2. Green Hub              EU            CBS, RUC,        opportunities,
                driven     from            about EcoMobility      practice,pilot   -LETS           Finish:   Interreg IV   MAH,             parallel and
                           logistics       (an efficient and      green            Öresund         2012-02   A             Trivector,       sequential
                           activities in   effective              corridor         - Green                                 Öresund          co-modal
                           the             transportsystem                         Corridor                                Logistics,       transport,
                           Öresund         with low climate                        - DeCo SSC                              Public           greener and
                           region          impact)                                 3. Biofuels                             Authorities in   longer trucks
                                                                                                                           Sweden and       and trains
                                                                                                                           Denmark


          Lund University / Department of Industrial Management and Logistics
Thank You For Your Time

                                  Any Question?




Lund University / Department of Industrial Management and Logistics

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Session 37 Fredrik Eng Larsson

  • 1. Design and Control of Low-Carbon Supply Chains 2050 – Projects at LTH Transportforum, Linköping January 13, 2010 Ali Pazirandeh Fredrik Eng Larsson Engineering Logistics Lund University
  • 2. The Logistics Sustainability Research Team at Lund University Engineering Logistics Production Management Sten Wandel Johan Marklund Ali Pazirandeh Olle Stenius Fredrik Eng Larsson Environmental and Energy Packaging Logistics Systems Henrik Pålsson Lars J Nilsson Sandra Silgård Casell Maisam Abbasi Social and Economic Geography Lars-Olof Olander Traffic and Road Karl-Johan Lundquist Lena Hiselius Lund University / Department of Industrial Management and Logistics
  • 3. Current Projects • Design and Control of Sustainable Supply Chains • LETS2050 Goods • EcoMobility Lund University / Department of Industrial Management and Logistics
  • 4. Current Projects • Design and Control of Sustainable Supply Chains • LETS2050 Goods • EcoMobility Lund University / Department of Industrial Management and Logistics
  • 5. Design and Control of Sustainable Supply Chains • Purpose: Design and control of supply chains with products of high value and short life cycles for low carbon transport • Focus: location of nodes and process, alternative transport links, production and inventory control • SEK 6 M, 2008-2010, six people from two disciplines Lund University / Department of Industrial Management and Logistics
  • 6. Design and Control of Sustainable Supply Chains (2) 1. Supply Chain Design – Case studies, action research, surveys, delphi studies, expert panels 2. Inventory Control – Analytical modelling 3. CO2 calculation tool Lund University / Department of Industrial Management and Logistics
  • 7. Design and Control of Sustainable Supply Chains (3) • SC Design – Packaging postponement: 300100 g. – Early orders on ship/rail instead of air • Inventory Control – Multi-stage • CO2 calculation tool – NMT refined Lund University / Department of Industrial Management and Logistics
  • 8. Current Projects • Design and Control of Sustainable Supply Chains • LETS2050 Goods • EcoMobility Lund University / Department of Industrial Management and Logistics
  • 9. LETS2050 • Purpose: To find radical and innovative solutions and regulatory measures to reduce CO2 emissions by 2050 • Focus: alternative end states and routes to 2050, possible conflicts, policy instruments, business models and incentives • SEK 36 M, 2009-2012, appr 30 people from 10 disciplines Lund University / Department of Industrial Management and Logistics
  • 10. LETS2050 Goods (2) • LETS2050 Goods is a Work Package in LETS2050: Map, synthesize and interpret existing knowledge of the relation between Synthesize knowledge of existing Identify critical factors and regulatory actions for the goods transport and alternative measures and the environment develope new with enough interaction between business, leverage to make goods authorities and consumers transports sustainable during the implementation of proposed solutions • SEK 8 M, 2009-2012, appr 10 people from 4 disciplines Lund University / Department of Industrial Management and Logistics
  • 11. LETS2050 Goods (3) • Approaches: – Future studies: Backcasting from 2050 scenes, Forecasting, Delphi studies – Case studies – Surveys – Expert panels • Interesting Results: – Gap between forecasting and backcasting – Technic fix or forced behavioural change – Formula for macro and micro connections Lund University / Department of Industrial Management and Logistics
  • 12. LETS2050 Goods (4) • WIP: ton tonkm v ehiclekm kWh CO2emissions CO2emissions GDP GDP ton tonkm v ehiclekm kWh Macro Micro CO2 2050 Target 2030 2050 Lund University / Department of Industrial Management and Logistics
  • 13. Current Projects • Design and Control of Sustainable Supply Chains • LETS2050 Goods • EcoMobility Lund University / Department of Industrial Management and Logistics
  • 14. EcoMobility • Purpose: To reduce CO2 emissions from logistics activities in the Öresund region • Focus: exchanging, collecting, and creating knowledge about EcoMobility (an efficient and effective transport system with low climate impact) within the region • EUR 2 M, 2009-2012, appr 50 people from 10 disciplines Lund University / Department of Industrial Management and Logistics
  • 15. EcoMobility (2) 1. TVN1: Green Logistics Hub – Green Corridors – Design and Control of Sust. SC – LETS2050 Öresund 2. TVN2: City Transport 3. TVN3: Energy Carriers and Technology Systems Lund University / Department of Industrial Management and Logistics
  • 16. EcoMobility (3) • Approaches (for the Green Logistics Hub): – Case studies to implement best practice – Pilot Green Corridor • Interesting Results: – Green business opportunities – Prallel and sequential co-modal transport – Greener and longer trucks and trains Lund University / Department of Industrial Management and Logistics
  • 17. Project Context Purpose Focus Areas Approach Subprojects Time Budget No of Interesting plan people results involved Design and Industry Design & Location of Case studies, 1. SC Design Start: SEK 6 M Appr 6 Packaging control of driven control for nodes, process, action 2. Inventory 2008-07 paid for by people from postpone- sustainable sustainabilit type of links, research, control NGIL and the ment 300  supply y of supply production and surveys, 3. CO2 Finish: its partner Engineering 100g., early chains chains for inventory control delphi Calculation 2010-12 companies Log. and orders on products for sust. transport studies, and tool Production ship/rail, with short expert panels Management product life cycles LETS2050 Swedish To find Alternative routes Future 1. Goods Start: SEK 8 M Appr 30 from Gap between Goods govern- radical and to 2050 scenes. studies. transport 2009-12 paid for by Engineering forecasting ment innovative Indentify conflicts. Forecasting accessibility Vinnova, Log., and and EU solutions Policy and back- and SC Finish: Road Packaging backcasting, driven and instruments. casting from structure 2012-12 administrat Log., Cultural technic fix or regulatory Business models, 2050 scenes 2. Control ion, Geography, forced measures incentives, and as well as systems, Energy Traffic and behvioural to reduce evaluation case studies, models and agency, Road, change, CO2 models surveys, policy Environme Trivector, formula for emissions delphi 3. nt Energy and macro and by 2050 studies, and Implementatio protection Environment micro relation expert panels n challenges agency and dilemmas EcoMobility Öresund Reduce Exchange, Case studies 1. City Start: EUR 2 M Appr 50 from Green develop- CO2 collect, and to implement Logistics 2009-05 paid for by LU, DTU, business ment emissions create knowledge best 2. Green Hub EU CBS, RUC, opportunities, driven from about EcoMobility practice,pilot -LETS Finish: Interreg IV MAH, parallel and logistics (an efficient and green Öresund 2012-02 A Trivector, sequential activities in effective corridor - Green Öresund co-modal the transportsystem Corridor Logistics, transport, Öresund with low climate - DeCo SSC Public greener and region impact) 3. Biofuels Authorities in longer trucks Sweden and and trains Denmark Lund University / Department of Industrial Management and Logistics
  • 18. Thank You For Your Time Any Question? Lund University / Department of Industrial Management and Logistics

Editor's Notes

  1. The LETS2050 goods project is the logistics part of the large project LETS (Governing transition towards Low-Carbon Energy and Transport Systems for 2050) involving 12 different disciplines. The aim is to explore and suggest ways forward for Sweden to reach 80-90% GHE reduction by 2050 and 20-30% by 2020. We start with alternative low carbon scenarios for 2050, e.g. technological fix or radical behavior changes, and then develop radical and innovative solutions as well as incentives, business models and governance polices to implement these solutions. Technical development of all modes regarding energy conversion and storage, vehicles and infrastructure will be considered as well as changes with impact on the demand for accessibility and mobility of goods and services such as the structural changes of the economy. Potential conflicts and necessary institutional and legal changes will be identified as well as consequences for Sweden regarding competitiveness and role in the global supply chains of regions and industry sectors.