Research proposal: Wind Turbines Supply Chain

1.0 Purpose

This project will concentrate on examining the process of wind turbine production with an aim to identify the components of its supply chain. Project shall elaborate on the components of the wind turbines supply chain, identify key players, discern the sources of demand and make predictions on future market developments as far as wind turbines and wind energy are concerned.

2.0 Background

With rising concerns about sustainable management of the environment, focus is shifting towards cleaner sources of energy. Geothermal energy, hydro power, solar energy and wind energy are among the renewable sources that are increasingly being looked up to as viable replacement for fossil fuels. Wind energy is produced through the use of wind turbines. The motion of the blades that are propelled by the wind triggers the mechanism through which electricity is produced.

Supply chains factor in all the stages involved in the conversion of raw materials into the final products needed by consumers. It therefore means that suppliers are an integral part of the supply chains alongside the manufacturers and the distributors and customers among others. For wind turbines to be produced, a number of organisations must be involved. The extent to which the wind turbine producers outsource their services determines their dependence on external suppliers and the size of the supply chain. The typical raw materials would be steel towers and other components produced away from the main installation plants.  

The findings of this research will broaden understanding on the components of the wind turbines supply chains and help draw insights on how the changing demand can be served with effectiveness.

3.0 Objectives

3.1 To breakdown the wind turbine production process to identify components of the supply chain

Understanding the components of a product is crucial in uncovering the components of its supply chain. The paper shall seek to study the components of the wind turbine with a view to understanding which raw materials are outsourced and which components are developed in house. The knowledge of such components will thereafter be used to break down the supply chain and understand its components. 

3.2 To identify the main players in the supply chain

Each component of the wind turbine must have a known supplier or a set of suppliers who specialise in their production. The project shall narrow down on the components that are sourced from external suppliers. The rationale for focussing on identifying the players is to understand the factors that affect their ability to ensure timely delivery; provide competitive pricing; and satisfy the levels of demand in the market.

3.3 To identify the sources of demand and demand trends in the market

Products are made to satisfy demand. It is therefore very important that the players in a supply chain be aware of their sources of demand and how to satisfy it. In identifying the sources, the project shall identify the main sources of demand in terms of market share and seek to establish their unique preferences. Trends in demand shall also be studied with an aim to highlight increases, decreases, and changes in preferences that have characterised the market for wind turbines in the recent past.

3.4 To identify developments in the market that could influence the use of wind turbines

Market trends in terms of the push to embrace green energy and initiatives taken in that regard could affect future trends. It is also expected that the market forces will influence product specifications. The project shall identify such trends and highlight them as appropriate.

4.0 Research proposal

4.1 Breaking down the production process to identify components of the supply chain

An in-depth enquiry shall be conducted into the nature of an average wind turbine. This process shall culminate in the identification of the components of the wind turbines. Once the components are identified, efforts shall be made to identify which components are developed in-house and which ones are outsourced to independent suppliers. While so doing, the rationale for outsourcing shall be highlighted (as per the views of the organisations covered). It is expected that the need to keep operation costs at bay will be the main reason why organisations opt to outsource some functions of the supply chain. Other reasons could be the need to remain focused on the core business. The project will highlight these factors as appropriate. Other elements of the supply chain besides raw materials such as distribution and others shall be studied. It is expected that at the end of this stage, the project will have developed a full supply chain for wind turbines with illustrations on how different elements contribute to the delivery of desired utility to consumers. 

4.2 To identify the main players in the supply chain

The findings in 4.1 shall be very instrumental in addressing this item. Once the components of the wind turbines have been identified, the next step should be to identify the organisations that supply them. It is expected that the project will find out the specification of the elements, considerations taken when determining price, the amount of lead time required for orders to be processed and the abundance of such supplies. The project shall take note of the level of competition existing between suppliers per item and this will be useful in understanding the level of supplier power for each component. Also to be noted are any consistent trends in terms of abundance or shortage of the components in question.

4.3 To identify the sources of demand and demand trends in the market

It is expected that the greatest source of demand is to be from major consumers of power such as manufacturing companies, agricultural farms, and other institutions. The findings of this project shall confirm or discredit these assertions. Changes in demand and customer preferences shall be focused upon as well.

4.4 To identify developments in the market that could influence the use of wind turbines

As global issues about environmental conservation and sustainable management take the centre stage, it is expected that perceptions towards wind turbines will be influenced in one way or another. Macro-environmental factors that could influence the supply and demand of the wind turbines shall be identified and their influence elaborated appropriately.

5.0 Methodology and limitations

The research shall be conducted predominantly through secondary research. The main sources of information shall be academic journals, industry reports and official company websites for organisations involved in the supply chain. The research shall endeavour to verify the validity of information acquired before adopting it for use in the project.

It is likely that the project could fail to uncover some aspects of the project due to the fact that the secondary sources used may have been produced for purposes other than the purpose of this project.

6.0 Timeframe

The project is expected to last for about 7 weeks with the project expected to come to an end on the 9^th May 2012. Research and the preparation of an initial draft shall be conducted concurrently. This shall last for 4.5 weeks. 1.5 weeks shall be reserved for the preparation of the final draft with the last week reserved for proof reading and making any corrections needed.