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: paul.m@allynintl.com

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.

Contacts