CASE STUDIES
Scaling Logistics Operations to Support Production Ambitions
Helping Tevva trucks to ensure their internal and external logistics operations scale as production volume and variance grows.
WHO WAS THE CUSTOMER?
Tevva is a technology company and truck manufacturer. They are best known for creating Britain’s first 7.5t-electric truck. Today, they specialise in producing zero-tailpipe emission Electric Vehicles and long-range Hydrogen Electric vehicles from their factory in Tilbury, UK.
WHAT WAS THE BRIEF?
Since 2021, HSSMI has been closely involved
with Tevva trucks. As Tevva begin to realise their ambitions in the production scale up of their electric 7.5t truck, they need to make sure that the operations, layout, equipment and overall strategy for logistics is also ready to deal with
the influx of new part variance and volume. This is true for both the external logistics of getting parts onto the site, as well as the internal logistics of moving parts around the facility.
WHY WERE HSSMI BROUGHT IN?
Off the back of the wider manufacturing strategy work that HSSMI delivered for Tevva, we were asked to support the team across 4 main areas:
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- Develop a logistics and supply chain strategy.
- Define layout of logistics areas.
- Create equipment specification and support procurement stages.
- Manage the onboarded vendors through delivery and installation.
HSSMI were brought in to bolster the internal logistics team and were selected based on the team’s deep experience in delivering similar programs with major OEMs and tier 1 suppliers.
WHAT DID HSSMI DO TO DELIVER AND WHAT WERE THE OUTPUTS?
Develop a logistics and supply chain strategy. The initial strategy covered many aspects of supply chain and logistics; packaging strategy, freight strategy, warehouse sizing and layout, storage solutions, material handling equipment (MHE), material flow and lineside presentation. It was key to refine the strategy over time as data matured so HSSMI created an adaptable “Plan for Every Part” (PFEP) by using standardised inputs such as the Bill of Material (BoM), Bill of Process (BoP), sourcing landscape and defined packaging / freight strategies.
Define layout of logistics areas. This evolved through several design iterations during the project in line with updates being made to the product design and production forecasts. Over time, the BoM part count grew, adding complexity into the marketplace. This drove an increasing pick location requirement which was solved by specifying additional carton live lanes and reducing bulk locations. The overall racking installation also had to grow over time to manage the increasing BoM volume. With no room for the marketplace to grow, ancillary areas, aisle ways and material flows had to be optimised to enable the increase in overall storage capacity. Through collaboration with the Tevva team, plans were also laid out for extra storage to manage future requirements driven by Tevva’s growing product portfolio. The short-term solution implemented was stand trailers that offered extra capacity whilst racking expansions were installed. In the long term the team planned, right-sized and specified both 3rd party warehouses to store safety stock from rest-of-world suppliers and an on-site external temporary warehouse.
Create equipment specification and support procurement stages. Using the logistics strategy as a guide, HSSMI sought and specified equipment with 4 agreed criteria in mind; low cost, high quality, flexible and environmentally friendly. Detailed technical specification were written for all necessary logistics equipment to enable successful RFI’s and RFQ’s, with delivery phased over volume ramp-up. Adjustable pallet racking, carton live, counterbalances, reach trucks, tow tractors, lineside flow racking, material flow equipment and more was purchased utilising the HSSMI blueprint scoring matrix to ensure unbiased nomination of vendors. Vendor responses were assessed on several criteria including: cost, timing, quality of vendor solution and ESG principles.
Manage the onboarded vendors through delivery and installation. The HSSMI team managed vendors to ensure delivery and installation of: adjustable pallet racking, carton live, material handling equipment and lineside flow racks, to the agreed timeline and managed scope creep due to product design changes. Throughout launch the HSSMI team supported the Tevva with change management, equipment specification and optimising the manufacturing-logistics interface.
WHAT IMPACT DID THIS MAKE?
The work resulted in the establishment of a robust logistics strategy to optimally manage the increase in parts volume and variance coming onto site for production. The defined strategy, layout, equipment and operations have been designed to be able to flex over time as production output grows and Tevva diversify their portfolio of vehicles. The Tevva team have implemented the changes and are expecting to produce 1,000 trucks in 2023.
KEY EQUIPMENT TO ASSIST WITH SCALING UP LOGISTICS OPERATIONS ARE AUTOMATED GUIDED VEHICLES (AGVS). THE ADVANTAGES AND DISADVANTAGES OF AGVS ARE BELOW:
Advantages of AGVs:
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- Enhanced plant floor safety.
- Reduced damage on materials and structures.
- Increased inventory accuracy and efficiency.
Disadvantages of AGVs:
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- High installation costs.
- Limited flexibility.
- Restrictive floor requirements.
(Adams, H. (2021) The advantages & disadvantages of Automated Guided Vehicles, Manufacturing Digital.)
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