A logistics quality system involving three basic elements—metrics/measurement, process/procedure, and reporting/repair—will lead to better outcomes.

By Michael Graska—Professional Logistics Group, Inc.

I define logistic quality as the ability to deliver the right item, in the right condition, in the right quantity, at the right time, and with the right supporting information. (April 2012, Wind System magazine)

I am often asked how important quality systems are in logistics. I always answer by saying that it depends on the scope of the transportation. If the scope of transport is relatively noncritical, then the need is less that for critical transport. For example, a simple LTL—or “less than truckload”—transport requires less of the attention than of a critical just in time delivery. It is a lesson I learned in school; the importance of precision in your work. More importantly, the amount of that precision required versus the costs required to obtain that precision. “What is the acceptable level of precision required” is a question that I always asked myself while planning for projects. Continue Reading

Planning and preparation are critical to any successful project, but indecision is the enemy of efficiency. Timely decisions keep schedules on track.

By Michael Graska—Professional Logistics Group, Inc.

The contract is finally signed, and everyone lets out a sigh of relief. Six months of hard negotiations hammered home an agreement. The only problem now is that we only have two months allotted time to start the project ramp up, when even in ideal situations it takes four months. Hey, we got the contract, we can do it! Even though the contract should have been signed three months ago. Sound familiar? For me it’s an example of “been there, done that, and even got the t-shirt.” I call this the neglected cost of indecision. Every plan, schedule, contract, and project is a decision. It happens on all sizes of projects during the planning and execution. Sometimes the cost is little, but oftentimes it is not. In the above case, the client paid a  premium for acquiring materials.

 (March 2012, Wind Systems magazine)

First let me define what I mean by indecision. Continue Reading

For logistics experts, years of experience in the field leads to an in-depth knowledge of your profession. Here are a few hard-earned pointers.

By Michael Graska—Professional Logistics Group, Inc.

With the New Year comes new resolutions, and like many of you I have made a resolution to lose some weight. My quest led me to read Michael Pollen’s book Food Rules, which provides a healthy approach to food and diet. I really like this concept of “simple to live by” rules, and it got me to thinking about whether there are such rules for logistics. So here are a few simple rules of my own applying to logistics, and I encourage you to add your own to the list.

 (February 2012, Wind Systems magazine)

Good people mean good results. Talented, inspired people left to do their job will result in excellent outcomes. When all is said and done, the team with the most talent wins the game. This applies in sports, and it applies in business. But it’s not only important to have talented people, because it’s equally critical to create an environment where they can succeed. Continue Reading

Variability is the “ghost in the machine” when it comes to supply chain efficiency. Learning what the variations are will increase your chances of incurring unnecessary delays.

By Michael Graska—Professional Logistics Group, Inc.

I was attending a supply chain networking event recently when the discussion turned to problems within supply chains. Several of the senior executives at the table were complaining about spending millions on software and other technologies and still not seeing the results they’d expected. A friend at the table who knew my background asked what I thought. Of course I explained that I was not sure of all the issues concerning each of the companies at the table, and so I hesitated to give a succinct answer. I listed numbers issues that could affect supply chain efficiency, but my friend pinned me down and asked “what is the one thing that causes the most supply chain problems?” I paused and thought for a moment before responding. “Well, if I can only state one issue and only one, then I would say it’s variability.” Those at the table asked me to explain further, so I continued. Continue Reading

Logistics planning requires factoring in the interaction between weather and the terrain to be transversed — taking a 3D rather than a 2D approach.

By Michael Graska—Professional Logistics Group, Inc.

As the seventh consecutive day of rain was drenching me in the middle of a project, causing delays and running up costs, I thought of a line by Longfellow—“The best thing one can do when it’s raining is to let it rain.” No matter how well you plan, Mother Nature can and will push back. But couldn’t we do a better job of anticipating this? I like to think of this as “Logistics in 3D,” visualizing the challenging and sometimes exciting elements during a project.

 (December 2011, Wind Systems Magazine)

As logistic professionals we plan, lay out schedules, craft contracts, and constantly communicate data. Call this “Logistics in 2D,” which is flat like a sheet of paper while 3D reminds us of the movie industry. Recognizing that a normal (flat) film lacks pop, a movie company will film it in 3D. It certainly adds excitement, but it also adds complexity and cost. Continue Reading

Seasoned travelers understand that rules change once borders are crossed. Successful logistics planning benefits from that realization, as well.

By Michael Graska—Professional Logistics Group, Inc.

Companies often forget seemingly simple things while handling the logistics of wind components within North America. What is assumed within U.S. borders doesn’t necessarily hold true for Canada or Mexico. These assumptions can have painful consequences, especially with time-sensitive cargo.

 (October, 2011, Wind Systems Magazine)

I have found that often companies have less difficulty importing from another continent than across U.S. borders with Canada and Mexico. While distance and time required for trans-ocean shipments focuses the reality of what is required to execute the transaction, often this is not the case within North America where the cargo is most likely transported by rail or truck. One can easily assume that since rail or truck is being used, trans-border shipments should be straightforward. There are a couple of reasons why companies make such assumptions. One is NAFTA and the perception that all rules and regulations are the same for all three countries. Continue Reading

Brisben Speaks at SWARS

Graham Brisben, President of Professional Logistics Group, Inc., spoke at the 2012 Southwest Association of Rail Shippers about shale development logistics. The presentation compares the transportation impacts of other recent “boom” energy events (ethanol and wind energy) and provides suggestions on how to make logistics a strategic advantage for those moving frac sand.

You can view his presentation by clicking here. Continue Reading

Barge Is Viable Option For Wind Components

By Anne Puholavich, Professional Logistics Group, Inc.

Barge is a third viable form of transport for wind components, especially in strategically located wind farms near water access or for the import or export of components. (Wind Systems Magazine, September, 2011)

Traditionally, the most common method of transporting large wind components has been via specialized truck transportation carriers. In recent years rail transport has been effectively utilized by large volume manufacturers such as GE, Vestas, and Siemens. In special cases, however, there is a third option for moving components that takes advantage of the extensive inland water systems in North America.
Barge transportation is an excellent and viable transportation mode to move large, heavy components. Depending on the origin and final destination, barge allows for the mass movement of goods to or from southern Gulf ports using the inland river system, or using the Great Lakes St. Lawrence Seaway System for transportation to and from northern ports in the region. Continue Reading

Holistic Strategies Benefits Wind Energy Supply Chain

By Anne Puhalovich

By viewing the entire supply chain holistically and developing logistics strategies that benefit the entire system, companies can improve performance and reduce cost.This article was originally published in Wind Systems Magazine in August 2011.

“Unlike standard industries such as hard consumer goods, the wind industry is sporadic, each project is new, and the timing and dimensional nature of the product requires complex logistics solutions.”

Logistics roles and responsibilities tend to be compartmentalized within companies. One group may handle project deliveries, another other group manages inbound plant logistics, and a third group arranges oversea transportation. Outside the organization the responsibilities are segmented even more sharply, sometimes resulting in confusion and lost opportunity. The goals and the objectives of one group may not match the needs of another group. For instance, the overseas shipping group wants to minimize costs from Europe to North America, but the total cost of the transport depends on the product going into the right port to realize subsequent gains in North America. Continue Reading

Reduce Demurrage And Detention Fees

By Anne Puhalovich—Professional Logistics Group, Inc.

Demurrage and detention fees are penalty charges that owners apply when transportation equipment sits idle. Here’s how they can be mitigated, or avoided altogether. This article was originally published in the July 2011 issue of Wind Systems Magazine.

Logistics costs account for 10-15 percent of the total turbine cost. Understanding and controlling these costs is an important part of managing the overall budget. An area of costs not typically budgeted, but which may contribute significantly to the overall logistics costs, are demurrage and detention fees. Under certain circumstances these charges may increase the logistics costs by 20 percent or more.

What Are They?

Demurrage and detention fees are penalty charges that owners apply when assets such as vessels, rail cars, containers, or truck transportation equipment sit idle through no fault of the asset provider. The purpose of the charges is to encourage the consignee to load and unload quickly.

Continue Reading