wind energy packaging design and reverse logistics management
TRANSCRIPT
Shippers need to understand how developing market dynamics and WTG
product life cycles are impacting outbound supply chains, in order to
effectively design and procure WTG packaging. Shippers will find that
integrating multiple types of packaging solutions can yield overall cost
benefits, but this may increase the complexity of supply chain planning
and execution activities. In order to fully optimize wind energy supply
chains, shippers will need to further develop reverse logistics capabilities,
fully leverage systems technology solutions and develop innovative WTG
packaging designs.
Abstract
Wind Energy Packaging Design and Reverse Logistics ManagementMatthew Paul and Michael Smyers, CPSM
Allyn International Services, Inc.31
Reverse Logistics Management
Wind Turbine Generator (WTG) Packaging
Innovation
References
European Wind Energy Conference & Exhibition 2010, Tuesday 20 - Friday 23 April 2010, Warsaw, Poland z
Packaging design is an integral part of wind energy logistics due to the
size and shape of wind turbine components. As wind turbines grow in size
and emerging markets are penetrated, shippers that deploy innovative
and adaptable packaging will achieve competitive supply chain
advantages. Shippers will need to balance costs of P&E, inventory,
transportation, and reverse logistics of reusable multi-functional packaging
against cheaper less durable options. Further, shippers need to place
greater emphasis on reverse logistics planning in order to avoid outbound
supply chain bottlenecks while minimizing package inventory and reverse
logistics costs.
Global Wind Energy Capacity Growth 2007 vs. 2020 Moderate Scenario [1]
The primary purpose of WTG packaging is to protect cargo during
transportation. Packaging directly affects supply chain costs and
complexity. Four main functional attributes to consider:
• Single vs. Multi use – Is packaging designed for reuse or a single trip?
• Non-stackable vs. Stackable – Can cargo be loaded in tiers while in
transit or at rest (e.g. stacked in the hold of a vessel)?
• Single vs. Multi Modal – Does the packaging enable cargo to be shipped
via more than one transport mode (i.e. ocean to rail to truck)?
• Dedicated vs. Universal use – Can packaging accommodate variations of
WTG equipment (i.e. 34m and 41m blades)?
In order to produce an effective WTG packaging design, the
interrelationships between functional attributes and supply chain costs and
complexity must be considered. Refer to below chart for an illustration of
the trade offs.
Packaging affects on Supply Chain Costs and Complexity
“Reverse logistics is the process of moving goods from their typical final
destination for the purpose of capturing value or proper disposal [2].” Wind
energy reverse logistics primarily deals with the return of reusable WTG
packaging. An efficient reverse flow ensures that packaging availability is
synchronized with WTG equipment manufacturing and outbound shipping
schedules.
There are multiple barriers to effective management of reverse logistics:
undefined return processes, many-to-one distribution channels, disparate IT
systems, misaligned budget responsibilities and insufficient quality
assurance. It is therefore vital for shippers to avoid a reactionary process
for reverse logistics management and form a strategic program that
encompasses supply chain planning, appropriate funding and IT systems
integration.
Conclusions
International WTG Packaging - Simplified Supply Chain Map
Matthew Paul
E-Mail: [email protected]
Phone: +1 239 489 9900 ext. 1468
Web Site: www.allynintl.com
[1] GWEC, Greenpeace International, DLR, and Ecofys. Global Wind Energy Outlook 2008.
Global Wind Energy Council. GWEC, Oct. 2008. Web. 25 Mar. 2010.
[2] Rogers, Dale S., Tibben-Lembke, Ronald S. Going Backwards: Reverse Logistics Trends
and Practices. Reverse Logistics Executive Council. 1998. Web. 25 Mar. 2010.
[3] http://www.nooteboomgroup.com/nooteboom/en/about_nooteboom/news/
2009/june/08/new_transport_solution_for_2_mw_nacelles/
There are many opportunities for WTG packaging innovation. Packaging
designs that reduce handling and space requirements, such as
Nooteboom’s load floor adapters which allow nacelles to be
loaded/unloaded without a mobile crane[3], can significantly reduce supply
chain costs. Systems technology (e.g. GPS/RFID tags) can integrate WTG
equipment status and location information throughout the entire supply
chain. Incorporating systems technology with reverse logistics will not only
help optimize cargo flow, but also aid in planning activities and reduce
inventory carrying costs.
There are several ways to increase sustainability through innovation.
Utilizing alternative materials such as biodegradable padding can reduce
the environmental impact of WTG packaging. Active end of life
management improves cost saving opportunities through recovery of
salvage value and supports waste reduction initiatives such as Directive
94/62/EC.
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