Sustainable Solutions for SCM

service level to the customer. For example, the decreasing of storage need of the industry and trade and the decreasing of the unit costs of the transportation create added value. Logistics strategy, distribution channels and logistics control The two-way distribution gives new starting points to the logistics strategies and the Second Market value chain is one of the most important ones. To the distribution channel the Second Market brings a new element which effects to the magnitude and directions of the cash, material and information flows. The logistics control in the product rotation monitoring, inventory level optimisation, production planning and timing etc. make big rotation speeds and minimisation of the material loss possible. Storage and transportation The two-way distribution decreases the need of storage and the unit costs of the transportation by increasing the rotation and the utility level of the vehicles. The two- way distribution gives new possibilities to recycle the packages or avoiding the packing. 5.4.6 Straightening the distribution channel The distribution channel contains all the parties which participate in the transportation of the product from the production to the final consumer. Traditionally the distribution channel has involved several companies. When the logistics ability and information control increase, the distribution channels straighten and the amount of participating companies decreases. By simplifying the purchasing and distribution channels, recycling is promoted in several ways: • The need for packing decreases when the amount of handling decreases. The protective effect of packages against all kinds of handling stresses become needless and the packages can be made lighter and the multiple layer packing can be avoided. • The handling damages of the goods are reduced along the decreasing of the amount of the handling phases so material loss and inaccurate products appear as little as possible. • The utilisation of the two-way material flow in the closed recycling systems becomes possible, so the recycling logistics (reversed by its direction) can be directly attached into the distribution logistics. 5.4.7 Logistics ecobalance The ecobalance is the energy consumption and air, water and other emissions caused by a product during its whole life cycle. The ecobalance can be utilised in theory when comparing the environmental effects of different products. The making of the ecobalance is difficult because the magnitude of variables which all must have correct values because the ecobalance made with general values never match with the reality. Also the prioritisation of the judgement criteria is a problem: it is impossible to say which emission is more (or less) dangerous than the other. The most important task of present ecobalances is to show the weakest part of the product’s life cycle.

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