Friday, March 26

Energy Supply Chain

The energy supply chain is unique. It is unique in that it can not be well timed, it can not be automated, and it is comprised mainly of people who do things rather than parts.

Because it involves mainly people who do things it is difficult to mathematically identify elements of the chain that can be reengineered to improve the process. The human process is so variable that process improvement opportunities do not reveal themselves to the casual eye.

It is difficult enough to get employees of the same company to reorganIze in such a way as to improve what they are doing much less get employees of multiple companies working in such a way as to improve. Where is the incentive to improve the whole? It is not there. Who gets paid if they work together better? No one. Each party is trying to grab their piece of the pie. The cyclicality of the industry is too great to fuel focus on collaboration improvement. This is the history of the industry. So what are we to do? Where one man sees problems another sees opportunity.

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