As The Blade Turns

As The Blade Turns
Revolving Wings (RW) is a Kalamazoo, Michigan manufacturer of equipment for the
renewable energy sector. The company has a strong domestic market for their fiber-
glass composite wind turbine blades thanks to federal tax breaks offered to power com~
panies. RW has some excess plant capacity thanks to a recent expansion and is
investigating the opportunity to enter the export market. Demand for turbine blades is
especially strong in India, where there is a strong commitment to renewable energy but
a shortage of critical parts to meet the growing need for power generating capacity.

During its annual executive retreat, exporting is a major topic of discussion. After
a presentation by the business development team and a similar evaluation by an indus-
try analyst, RW’s CEO sees the light. He quickly becomes a strong proponent of selling
wind turbine blades to a power company near Bangalore, India. “Now all we have to do
is figure out how to get the blades there quickly and without damage,” says the CEO.
“Darren, get your team on this one. I want some solid answers.”

Darren Hehn, RW’s transportation director, knows this is a big opportunity for the
company but it comes with tremendous challenges. Picking the right mode, finding
ports that can handle the blades safely, and routing the freight are just a few of the is-
sues that keep Helm awake the night after the CEO tagged him to lead the “export to
India” project.

At his next staff meeting, Helm reminds his team: “These blades can be up to 148 ft
long and weigh 12 tons. We have to first get them from the plant to the point of export.
That’s not easy, since we need to plan routes to avoid urban rush hours, sharp curves,
narrow lanes, and weight-limited bridges.”

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“On top of those usual challenges, we have to find a high-quality international carrier
to get the blades to India,” Helm adds. “And don’t forget the port challenges and final
delivery to Bangalore.”

Turning to you, Helm says: “Get me some answers fast! We need a plan of action
for the CEO by Friday.”

CASE QUESTIONS
1. What are the major problems and pitfalls that RW faces as it tries to go global with
its product line?
2. What mode(s) of transportation would you recommend to Helm as most appro-
priate for moving the turbine blades domestically and internationally?
3. How would you route shipments of turbine blades from Kalamazoo to Bangalore?
Why?
4. What role will ports play in the flow of turbine blades from the United States
to India?