Finding Sustainable Solution in a Forever-Changing Industry The Case of HAVI Hungary

Absztrakt (kivonat)

1. Aim: The aim of my thesis is to highlight the importance of green logistics as a tool for making sustainable business decisions. The application of green logistics in everyday operations has to become a necessity. The exploitation of the Earth and its resources need to be minimized. We should find solutions to be in harmony with our planet. “Are we concerned about the long-term effects of our choices and actions, or do we only care about the short-term benefit?” 2. Methodology: I have consulted with the Managing Director of HAVI Logistics Kft from March 2020 until I have submitted my thesis work. He sent me corporate documents which I could analyse, use for calculations and to get input from. We have set up in-call and online meetings, where I could ask questions and phrase my concerns. 3. Structure: After the introduction, I show what negative impacts logistics, especially transportation has on the environment. Then it transitions into green logistics, where I summarize how 5 different sources define it, which elements of green logistics were mentioned (e.g. reverse logistics) and what methods do they analyse (e.g. alternative fuels and vehicles). This chapter will be used later. I merge two definitions to create what in my opinion is the best description for green logistics and elaborate on some of its elements. Afterwards, I point out how innovations and technology is necessary for green logistics. I write about many developments including digitalization, Artificial Intelligence, Big Data and robotization and show what makes them sustainable. I introduce the company in focus: HAVI Logistics Kft. (a Hungarian subsidiary of an American company). I write about HAVI and McDonald’s 40-year-long business relation, how its everyday operation looks like and what makes it special (e.g. the so-called Invisible Delivery method). Then I highlight the importance of the Science Based Target initiative – a coalition of WWF, Carbon Disclosure Project and more, in which HAVI has taken part of since 2019. The focus shifts to warehousing. I introduce HAVI Logistics Kft’s warehouse operations, show how it uses green energy and alternative refrigerants. After that, I explain how the Hungarian subsidiary uses backhauling, route planning, focuses on efficiency and utilization by having trailers with split cargo areas and uses CNG trucks. Then I write about what transportation tools does HAVI Logistics Kft. use. I summarize what makes each of them sustainable (warehousing, transportation and unit load tools), show weaknesses and possible improvements on them. I also mention what type of green innovation is used at the company. After, I turn back to the chapter I have mentioned I will use later and compare what business activities of green logistics are relevant to HAVI, what the future might hold and what is out of its scope. Finally, I analyse HAVI’s CNG trucks and compare it with diesel trucks. I calculate a cost comparison, list advantages and disadvantages. I also calculate an emission comparison where we get how many trees would be needed in order to absorb the CO2 emissions saved by CNG trucks. Both calculations were based on data provided by HAVI Logistics Kft. The result of the analysis is that CNG trucks are worth the investment. 4. Result of my thesis: HAVI is the perfect example for showing that environmentally friendly solutions can be at the reach of our hands as well. It is open to try new methods and is not afraid of innovations either. The reason why I chose to focus on CNG trucks was to show that for the Hungarian subsidiary it was worth being the pioneer in Hungary. It is an investment which will pay off on the long run and eases the burden on our planet. We can tell that HAVI is absolutely one of those which have provided an example to follow, and applied sustainable solutions in a forever-changing industry.