Delivering on the Promise of Clean Energy

As the search for news forms of energy intensifies, supply chain professionals are presented with an unprecedented challenge and opportunity: To apply their managerial and analytical skills in delivering this energy to the end consumers. How effectively they respond may ultimately determine whether—and when—the promise of green energy finally gets fulfilled.
image
By Jarrod Goentzel
January 07, 2010 - SCMR Editorial
Download Article PDF

The surge in green energy investments is the modern equivalent of the Gold Rush. Researchers and entrepreneurs are exploring new frontiers from the windy Great Plains to the sunny Southwest in search of the mother lode. And like the original rush, this one is dominated by the challenges of turning a natural resource into a commercial proposition. However, an important part of very effort to deliver new forms of energy has been largely overlooked: the vital role of supply chain management.

Not even supply chain professionals are fully aware of the need to apply the analytical and managerial skills they routinely deploy to the delivery of green energy. For example, renewable resources such as wind and solar are, by nature, intermittent and located far away form consumer demand. In other words, the supply chain is often in the wrong place at the wrong time. Supply chain professionals have been addressing these mismatches for as long as their profession has existed.

For understandable reasons, the green energy effort is centered on how to generate supplies and on consumer applications such as hybrid or fuel cell vehicles.  But before green energy can become a viable alternative to fossil fuels, we need to address the issue of how it can be delivered reliably and cost effectively to end consumers. This is where the supply chain comes in.

SUBSCRIBERS: Click here to download PDF of the full article.


About the Author

Jarrod Goentzel

Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Following the lead of its Congressional Colleagues in the House of Representatives, the United States Senate yesterday approved a measure geared to keep federal surface transportation funding intact through the end of December with a nearly $11 billion stopgap fix.

XPO Logistics announced second quarter earnings and the acquisition of two companies, New Breed Logistics, a non asset-based 3PL focusing in contract logistics services, for roughly $615 million, and Atlantic Central Logistics, a 3PL provider of last-mile logistics services, for roughly $36.5 million.

The report, entitled “Outlook for the Domestic Transport and Logistics Market in 2H14 and Beyond,” takes the view that strong freight levels in the second quarter have left trucking companies in a good position: one in which they need to come up with new plans to handle rising demand. But even with that positive momentum afloat, the report observes that there are some familiar challenges intact, such as a lack of qualified drivers and the regulatory drag from the new hours-of-service rules that took effect in July 2013.

Flags of Convenience are a fact of life in the commercial maritime trade, but several European political action groups are worried that they will pose a threat to the Continent’s air cargo industry.

For May, which is the most recent month for which data is available, the SCI is -7.5, following April’s -7.5. FTR said this reading represents a still-tight capacity environment, as utilization rates hover between 98 percent and 99 percent.

Article Topics

· Green · Sourcing & Procurement · JanFeb 2010 · All topics

Comments

Post a comment
Commenting is not available in this channel entry.