Green and Lean

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Case 14-1 (Green and Lean) Going Green has economic advantages which normally impact profitability. For George and Jeff to achieve their objective about going Green and lean simultaneously, they need to focus on some of the old axioms for transportation efficiency, namely, “don’t ship air” and “don’t ship water.” “Don’t ship air”, this recognizes that empty space in a motor carrier trailer or from empty backhauls or less- than-capacity dispatches is wasted and never recovered. So George and Jeff can put emphasis on consolidation to fill equipment to capacity or near capacity. This has a potential to significantly reduce network miles, especially in the motor carrier sector. The reduction in the network miles will improve fuel efficiency and reduce the carbon footprint. Packaging which should be part of the consolidation has an impact on wasted transportation capacity too. Using larger packages filled transportation equipment, warehouse space, and retailer selves more quickly than necessary. The net result will be a lot of “air” and wasted space. George and Jeff can reduce this waste by using smaller packages which will improve capacity utilization in transport equipment, warehouses, and retail stores. “Don’t ship water”, this refers to the extra weight of water in the product, which transport economics conclude that water should be added as close as possible to the point of consumption to reduce cost and especially to reduce transportation cost. They also need to focus upon cost reductions related to fuel efficiency, operational collaboration, including cooperative efforts to reduce loading and unloading times at consignor and consignee shipping receiving facilities; increase hours of operation for drop yards and warehouse facilities; allow faster payment for carriers; reduce driver-assist times; and share capacity forecasts with carriers. This type of

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