VIP Shipper Club library – Imagine, Discover, Invest

ISSUE 3 / 2017

ISSUE 3 / 2017

IMAGINE, DISCOVER, INVEST

Steering Towards Innovation in Breakbulk

VIP SHIPPER CLUB MEMBER:

BECHTEL ......................................................................................................... page 61

thought leaders

IMAGINE, DISCOVER, INVEST Steering Towards Innovation in Breakbulk

B

reakbulk project cargo shipping is like a large ship; slow to turn. Unlike leaner, more predictable container shipping, breakbulk has plenty of valid reasons behind its limited predictability: cargo is not unitized, shipping lanes are random, fabrication schedules are dynamic, and so on.

Seizing on the opportunities offered by recent innovation, breakbulk shipping can remove or normalize some of those traditional constraints and

BY STEVE SPOLJARIC variability by embracing new concepts.

The engineering, procurement and construction industry is making significant efforts in exploring innovation and its application in breakbulk. Bechtel is accelerating Value Modeled Procurement and its trademarked Engineered Logistics to make substantial improvements in predicting outcomes, develop what-if real-time simulation models, and envision the future by replacing traditional drawings with 3D holograms.

The term “innovation” is generic and can cover a wide range of very different topics. In order to understand whether innovation is useful, we need to look at the basics of maturing an idea. After you ideate, if you can standardize, digitize and automate, then you have a chance to innovate. Racing to innovate without allowing the concept to incubate properly can result in unproven, expensive outcomes that can make implementation difficult.

Maybe innovation happens naturally with

the introduction of new technology without us even recognizing it.

Often a singular innovation cannot be identified as solely responsible for an improvement, but rather a collection of incremental advancements over a longer period. Even when there is recognized technology responsible for improved efficiency, like in container shipping, these solutions are not easily accepted in breakbulk. Alternately, some innovation can be immediately disruptive to traditional methods, but it is so obviously beneficial and easily adopted that it feels very natural. Innovation cannot just be trendy; it needs to bear real benefits otherwise breakbulk shipping will continue to be resistant.

NEW TECHNOLOGIES

At Bechtel, we imagine, discover and invest in new technologies – like augmented reality, 3D printing, digital twins, and machine learning artificial intelligence – to force paradigm shifts to achieve better and more competitive results in how we create solutions for efficient project execution. For example, Engineered Logistics is applying known industrial engineering tools to complement expert knowledge in logistics management. We partnered with academic institutions to develop what-if simulation models to create quick, real assessments of costs, schedules, design options and risks. These models are reflective of exactly what would be experienced in the real world with a high degree of outcome confidence. Just as important, the accuracy of the model is driven by solid data with corresponding visualization tools that display a difficult, complex problem in an easily understood format.

As Engineered Logistics expands into concepts such as gig economy, or

the prevalence of short-term contracts or freelance work as opposed to permanent jobs, it offers a new way to execute projects in an optimal, efficient manner.

The leading benefit of such an approach is enabling the application of more advanced planning to integrate with engineering and construction colleagues.

BETTER UTILIZATION

For Bechtel, the future is now.

Unmanned aerial vehicles will be used for more than cool videos – for example, improving safety by allowing remote inspections. LIDAR – a surveying method that measures distance to a target by illuminating that target with a pulsed laser light - will be used for more than a fancy street view of your neighborhood from an online map – for example, simulating turn-by-turn routes to verify difficult navigation. And the odd-looking goggles you see in the mall will be used for more than awesome video gaming – for example, remotely linking several people from around the world to do a cargo inspection virtually from the luxury of their home office.

Bechtel colleagues are proud of our 120-year history of innovation leadership. Yet today, we are pushing the limits further by building on the experience and knowledge of our employees, implementing a sound investment process, and partnering with leading academic and industry organizations. We are on a clear course of innovation with a very strong wind at our back. What will you do to help steer your company towards innovation in breakbulk project cargo shipping? BB Steve “Spo” Spoljaric is traffic and logistics manager, and procurement innovation lead for Bechtel’s oil, gas and chemicals global business unit.

www.breakbulk.com BREAKBULK MAGAZINE 61