The DONG-Siemens offshore wind collaboration, a long-term relationship that began in 1991 and has involved over 930 turbines used across more than 13 windfarm projects, is a model of sustainable and long-term supply chain organization for strategic partnerships in offshore wind. The way the relationship has played out leverages economies of scale of the WTG, and takes advantage of reductions in cost over time due to learning curve effects, without sacrificing commercial independence. Many companies in the industry are seeking the optimal form of interaction with customer and suppliers of key components and services (preferred supplier, partnership, direct investment, etc. – my book “Optimal Supply Chain Management in Oil, Gas & Power Generation” provides a roadmap for building industry partnerships, which articulates and classifies different levels of partnerships). The mode of commercial organization that DONG and Siemens have created provides a model for many other players to study and emulate.
Uber, Lyft, and Didi create routing efficiencies and could eventually reduce the total number of vehicles on the road dramatically as drivers decide they don’t need a dedicated personal vehicle. Interconnected vehicles, which share information with each other wirelessly, and smart traffic control will fundamentally change traffic densities and flows. The increasing use of drones for commercial delivery have the potential to transform personal and commercial logistics.
Companies and countries that invest in transport technologies like these are leapfrogging those that don’t – not just in transport and logistics, but in international trade, as more efficient supply chain networks make their countries more competitive. The trend started decades ago, and leading countries already have a strong advantage. And the leading countries are not the ones you think!
Learn how to make your company (or your country) have a brighter future in global trade by investing in the right technologies.