Plg2009 Windpower

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Professional Logistics Group

Introduction

»  About Professional Logistics Group

»  Contents I.  Defining the supply chain II.  Optimizing the wind farm supply chain III.  Hypothetical illustration IV.  Conclusions

»  This presentation will be available at:  www.prologisticsgroup.com  www.awea.org

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Finished Product Supply Chain/Wind Farm Supply Chain

Defining the Wind Farm Supply Chain

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Manufacturing Supply Chain

Characteristics and Challenges Wind Farm Supply Chain

»  Oversized and overweight »  Unique material handling challenges »  Dynamic global sources »  Sequencing of components »  Multi-modal transport »  Specialized equipment and knowledge »  Transportation regulations »  Project specific issues:

  Cost overruns   Schedule delays   Demurrage

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Wind Farm Supply Chain – Tool Kit

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Transportation procurement expertise  Market knowledge   Process and criteria

Load engineering & material handling expertise Modal depth Project management expertise Supply chain methodology

MODE Truck Rail Marine

NODE Ports Transload Sites Laydown Areas

CARRIER Specific Service Providers

Wind Farm Supply Chain Deliverables

Wind Farm Project …Budget …Schedule …Metrics …Contingencies

Supply Chain Optimization Methodology

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Project Parameters »  Locations

  Source – vendors or ports   Destination – wind farm

»  Time   Wind farm – deadline   Product lead-time

»  Product   Quantity   Dimensions

»  Budget

Project Constraints »  Regulations

  Transportation   Labor/Safety

»  Infrastructure   Route   Wind Farm

»  Resources   Availability

»  Environmental   Season - weather   Market conditions

INPU

TS

Project Resources »  Carrier Modes

  Rail   Truck   Maritime   Barge

»  Space   Port   DC   Wind Farm

»  Equipment

Supply Chain Optimization › Total cost to serve modeling – common UOM › Scenario sensitivity analysis - what are the trade offs?

› Limiting variability › Risk assessment – contingency planning

› Formal procurement process › Demand flow and management MO

DEL

ING

O

UTP

UTS

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Case Study - Towers

Inputs for Optimization Analysis •  Sourcing sites/options •  Port/terminal costs by mode •  Port/terminal infrastructure •  Linehaul transportation cost by mode •  Load factor/efficiency by mode •  Route clearances •  Transportation regulations •  Direct equipment costs •  Project deadlines

Case Study - Nacelles

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Inputs for Optimization Analysis •  Sourcing sites/options •  Port/terminal costs by mode •  Port/terminal infrastructure •  Linehaul transportation cost

by mode •  Load factor/efficiency by

mode •  Route clearances •  Transportation regulations •  Direct equipment costs •  Project deadlines

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Inputs for Optimization Analysis •  Sourcing sites/options •  Port/terminal costs by mode •  Port/terminal infrastructure •  Linehaul transportation cost by mode •  Load factor/efficiency by mode •  Route clearances •  Transportation regulations •  Direct equipment costs •  Project deadlines

Case Study - Blades

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Optimized Solution

Key Objectives •  Lowest common UOM ($/WTG) within budget •  Effective project management & execution •  Contingencies in place •  On-site control & communication

Conclusion

1.  Wind farm logistics are uniquely challenged 2.  Wind farm supply chain optimization requires

  Unbiased approach to modes, nodes, and carriers   Depth of expertise in procurement and multiple modes   Formal process & methodology

3.  Optimization is a key to competitiveness for both OEMs and developers

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Thank You! For more information, please contact:

Graham Brisben, President Professional Logistics Group, Inc.

+1-708-386-0700 gbrisben@prologisticsgroup.com

WWW.PROLOGISTICSGROUP.COM

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Professional Logistics Group

Thanks to: Amy Allen Melinda Brisben Matt Crews Olaf Ebert Barton Erwin

Mike Graska Adam Hartstein Roberto Holz Dave Johnson Kathy Langan

Tom Loftus Jenny Costas McClain Anne Puhalovich Melba Rivas