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Renewable Energy, Green Transportation and Logistics Kuala Lumpur | October 11, 2011 Presented by: Gopal R, Vice President Transportation & Logistics Practice Frost & Sullivan Asia Pacific

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2 Agenda G REEN S UPPLY C HAIN - A P ERSPECTIVE C URRENT G REEN S UPPLY C HAIN P RACTICES W HAT C AN W E A DOPT ?

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3 G REEN S UPPLY C HAIN - A P ERSPECTIVE

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4 Is our current Supply Chain Green? Transportation? Value Added Services? Containerization, Consolidation, Break Bulk? Warehousing & Storage? None of the existing functions are entirely Green

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5 What Constitutes a Green Supply Chain? Reclaim / Reuse / Improve Transportation REVERSE LOGISTICS PROCESS OUTPUT RAW MATERIALS Materials Manufacturing End Users Warehousing Ways in which innovation in supply chain management and industrial purchasing may be considered in the context of the environment

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6 To Reduce Emission of green house gasses Fuel and energy usage Hazardous material usage Natural resource usage Scrap and material costs To Increase Usage of recycled material Merging of logistics services Avoid redundant functions Key objectives of GREEN Supply Chain Toll Logistics' average annual CO2 reduction is ~ 10,000 MT GM reduced its disposal costs by US$12 Million Intel, Commonwealth Edison, GM, and 3M have improved their operating efficiency by integrating environmental considerations into key materials management decisions

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7 Benefits of Green Practices in Supply Chain Improvement on healthier bottom line Improvement of overall quality of life Conservation of natural resources Mitigation of Risk Reduction of the spread of infectious diseases Protection to eco- system Enhancement on reputation and market value Improvement on overall environmental implications Improvement on air and water quality Improvement in working environment Social Angle Environmental Angle Business Angle Reduction of Waste The Benefits of Green Practices in Supply Chain

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8 C URRENT G REEN S UPPLY C HAIN P RACTICES

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9 What are some Current Green Practices? I. Green Warehousing II. Green Freight Transportation III. Green Logistics Services

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10 Green Warehousing ASSETS 1. Equipment Hydrogen-cell forklifts Electric forklifts Turbo ventilators Skylights 2. Systems Motion sensor lighting Energy efficient lighting Reflective roofing system Heat recovery system Paperless operations Warehouse Assets and Operations OPERATIONS 1. Water Management Recycling rain water Reducing water usage Reduction, control and treatment of surface runoff Recovery of non-sewage water 2. Waste Management Appropriate disposal of waste Ensuring non contamination of water Establish waste treatment & recycling

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11 Green Freight Transportation ASSETS 1. Carriers Bio-fuel powered carriers Light-weight material Green engines Hybrid trucks Advanced transmission Regenerative braking system 2. Use of Railways Automatic shutdown device Automated train parking system Electric / hybrid locomotives Regenerative braking system OPERATIONS 1. Operations Driving style Type of fuel (Bio, NGV) Engine efficiency and emission improvement Route planning and optimization Maximizing trips through Milk Runs Regular replacement of old fleet Reducing / complying to load factor Transportation Assets and Operations

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12 Green Logistics Services Logistics Services Reverse logistics Paperless transaction Vendor/ partners selection with emphasis on green practices Green logistics consulting services Technology driven functions Recyclable packaging and labeling material Effective inventory mgt. to reduce redundancies Consolidation & break bulk to avoid transportation and warehousing needs

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13 None of the current green practices are industry wide practices in any given country What does the future hold? Regulations need to be in place to drive green practices Where do we begin?

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14 W HAT C AN W E A DOPT ?

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15 Green Practices Solar Energy Rain Harvest Natural Light What can we adopt for Supply Chain? Use alternative fuel Recycle Reduce use of Energy Reduce use of hazardous materials Reduce emission of green house gasses Planting

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16 What can we adopt for Transportation? Bio-diesel / Electrified trains Green stations and depots Green Practices Solar Energy Rain Harvest Saving Energy Use of Solar power for stations, bus stops Regenerative braking for trains

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17 A BOUT F ROST & S ULLIVAN

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18 A Global Growth Partnership Company Founded in 1961 Over 1,700 Consultants / Analysts across 40 global locations 10,000+ clients worldwide including emerging companies, the global 1000, and the investment community Offer the exclusive Growth System including: Growth Partnership Services, Growth Consulting and Growth Team Membership Developers of T.E.A.M. Methodology, proprietary process to ensure that clients receive a 360 o perspective of technology, markets and growth opportunities

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19 Cross Industry Capabilities and Competencies Partnering with clients to create innovative growth strategies MAJOR INDUSTRIES WE SERVE OUR EXPERTISE Best Practices Research Financial Analysis & Research Financial Analysis & Research Technical Insights Customer Research Growth Consulting Growth Workshop Market Engineering Research Growth Partnership Services Corporate Training Decision Support Database Stratecast: Telecommunications Strategic Forecasting Executive Summits Aerospace & Defense Automation & Electronics Automotive Business & Financial Services Chemicals, Materials & Food Healthcare Information, Communications & Technology Environmental & Building Technologies Energy & Power Systems Transportation & Logistics

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20 Transportation & Logistics Consulting Competencies Supply Chain Services Freight Markets Rail Transportation Urban Transportation Ports Intelligent Transportation Systems Contract Logistics Services Transportation Supply Chain Technologies Forwarding, Express and Support Services Infrastructure Equipment Services Systems Aftermarket Systems Support Services Systems Air Ocean Land Strategy Development Business Planning Training M&A Analysis Customer Assessment Market Opportunity Analysis Addressing Trends & Issues Competitive Benchmarking Technology Benchmarking Product / Service Concept Customer Satisfaction Surveys Growth Coaching & Workshops

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21 THANK YOU We Accelerate Growth