Modularization2011 Break Bulk Conference

Dick Knoll – President /Owner– Drexel Logistics – Houston, Texas

The decision to fabricate and modularize has been determined by the owner and concurrence obtained from the various suppliers that the equipment can in fact be modularized.

All due diligence in engineering has been reviewed and completed

All due diligence in raw materials, supplies and equipment needed has been determined

All due diligence in quality control has been determined

KNOWN FACTORS

Modularization

FOR THE PROJECT OWNER, IT IS NOW TIME TO MOVE FROM CONCEPTS AND

ENGINEERING TO TRANSPORT EXECUTION

ONE MAJOR FACTOR CONFRONTS THE PROJECT PRINCIPAL

MODULARIZATION “ASSUMES” SIMPLICITY IN CONSTRUCTION BUT MODULARIZATION

DOES NOT GUARANTEE SIMPLICITY IN TRANSPORTATION

Modularization

1) DO I AS THE PROJECT OWNER INTEND TO MANAGEAND CONTROL THE ENTIRE TRANSPORTATION FUNCTION

FROM ALL ORIGINS TO FINAL SITE WITH MY OWNLOGISTICS STAFF ?

OR

2) DO I AS THE PROJECT OWNER SUB-CONTRACT THE MANAGEMENT, VENDOR CHOICES AND EXECUTION CONROLFOR TRANSPORTATION FROM ALL ORIGINS TO FINAL SITE ?

THE MODULAR EXECUTION MUST BE CONFIRMED BY ANSWERING TWO

CRITICAL QUESTIONS

ModularizationAssuming the project owner has limited logistics resources or is unwilling to manage every detail,

a third party logistics provider services are secured.

That third party provider, working in concert with the project owner, determines ;

A realistic schedule for delivery of goods to the jobsite

A listing of capable logistics vendors that can be used to manage all physical logistical functions

ModularizationIn Addition the following salient points are mutually established between the project

owner and the third party provider;

A responsibility chart for the third party

A clear communication network for all parties in the project

Probable benchmarks and watershed goals for the project itself and all parties involved

ModularizationAs a STAND ALONE CONCEPT,

MODULARIZATION brings cost and efficiency savings to the equipment needs of any project, but it does not reduce the need for attention to transport details,

choice of carriers and particularly, choice of the primary transport third party

vendor to finally execute the project.