Research Papers
Title: Transportation Management in the Wind Industry: Problems and Solutions Facing the Shipment of Oversized Products in the Supply Chain
Reference #: SCMR-WP025-1007
Date: 10/15/2007
Authors: Suzanne Ozment - University of Arkansas
Terry Tremwel - University of Arkansas
Abstract: Technological advancements and innovations have reduced the price per kilowatt-hour (kWh) of renewable, wind-generated electricity to the point that it is competitive with coal. Worldwide, wind energy production has grown at a compound annual rate of 29% over the past 9 years and, recently, the United States is leading the way by installing more wind capacity annually than any other country on earth. Reductions in the cost of producing wind energy are a result of increasing the size of the machines. Problems associated with shipping larger and larger units, together with rapidly increasing demand, have created serious constraints in the supply chain. The space required to transport a complete 2.0 MW turbine is approximately 1500 cubic meters, about 13x the volume of an ordinary trailer. Components may weigh up to 90 tons and individual blades can exceed 50 meters in length. As many as 15 individual trucks with oversized and specialized truck beds must transport components of one complete turbine. Some components exceed the dimensions that can travel by railroad. These constraints have made transportation extremely costly and time consuming. For example, in 2006, worldwide transportation of oversized turbines ran between 20 and 25 percent of the total turbine cost for Vestas. Manufacturers and logistics companies and have started to address these issues by employing Collaborative Transportation Management (CTM). CTM has reduced the number of hang-ups, specialized equipment, and reduced overall cost of transport. CTM facilitates collaboration and information sharing among links of the supply chain. By enabling a more stable forecast, CTM offers transportation companies the opportunity to minimize the amount of time they run empty, as well as reduce the waiting times of carriers (Sutherland 2006). Transportation companies can share this cost reduction with collaborative partners, thereby improving the overall supply chain and lowering costs.
 
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