Application of Information Technologies

The inclusion of a hauling contractor in the business plan provides the best opportunity for all of the technology developed for other logistics systems to be applied to feedstock logistics. The “information technologies” applied include a Global Positioning System (GPS) unit in every truck, a bar code on every multibale handling unit, data entry over the cell phone network at every SSL load-out site, data entry (load mass and time stamp) for each load across the receiving facility scales, and a data entry when each multibale handling unit is unloaded in the plant. The data collected is used to optimize asset utilization in real time; it will also feed needed data into the bookkeeping software to pay the farmgate and hauling contracts.

It is expected that the collected data will be presented, in real time, to a “Feedstock Manager”, perhaps as a map display showing the location of all assets updated at a pro­grammed time interval. The goal is to provide an opportunity for the Feedstock Manager to make optimization decisions in real time. Examples are: trucks rerouted to avoid traffic delays, assets redeployed during breakdowns, at-plant inventory increased when inclement weather is forecast, and a turn-down of plant consumption when a delay in feedstock deliveries cannot be avoided.

Some perspective of the logistics complexity, as presented to the Feedstock Manager, can be gained from the following “example” parameters. This example presumes that operations will be in the Upper Southeast United States where switchgrass is harvested over an eight — month harvest season, August through March. (The switchgrass is left to dry standing in the field and harvested when field conditions are satisfactory throughout the winter.) Suppose the supply area has 199 SSLs within a 30-mile radius of the plant, and each SSL has a different amount of material stored. (The visualization shown in Figure 13.11 will help the reader understand the complexity.) The farmgate contractors all want to fill their SSLs at least twice during the harvest season in order to minimize per-ton SSL investment. The Feedstock Manager’s job is to coordinate load-haul operations such that each farmgate contractor is treated fairly. Suppose there are five SSL load-out operations under contract and each of them wants the same opportunity to earn income (total tons hauled per year). The Feedstock Manager’s job is to treat all contractors fairly — not a simple task.

The example can be complicated further. Storage losses increase with time in storage. If the bioenergy plant requires farmgate contractor A to store for a longer period than farmgate contractor B, then contractor A will have higher storage losses and should be compensated. Contractor A filled its SSL on time — it is not their fault that hauling was delayed. One can expect that days-in-storage will be a factor in the farmgate contract.

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Figure 13.11 Example of Satellite Storage Locations (SSLs) located over a 30-mile radius around a chosen bioenergy plant location. (The plant is located in the center of the circle. Each cross represents an SSL location with access to a public road. The smallest SSL stores biomass from 60 acres of production fields and the largest stores biomass from 1200 acres of production fields).