Morrow Batteries, Metier and Myloc Construction
Case Study: Streamlining Project Supply Chains.
Background
Morrow Batteries is creating an innovative industrial site in southern Norway built on several cornerstones; a locally secured renewable energy supply, access to a deep sea port to ensure international freight capabilities and a long-term development concept.
Eyde Energy Park outside the city of Arendal has the capacity to host multiple large Giga battery cell factories, built step-by-step.
Morrow began construction of their first giga-scale factory in 2020. This first project is not only a commercial investment but also forms the foundation of accumulated experience to be utilized in future projects in the area.
LOGISTICS MANAGEMENT – A CRITICAL GIGA PROJECT CAPABILITY
The initial logistical plans for the construction were limited to managing long-haul overseas deliveries to the Port of Arendal.
While the construction of a building of this size poses its requirements, the true challenge concerned equipment deliveries and installations.
In 2022, Norwegian consulting company Metier (part of Tetra Tech) and Swedish logistics specialist Myloc were given a pre-study assignment. This included risk analyses and designing a model for managing logistics during the installation phase and was executed in close collaboration with Morrow itself.
Morrow also assigned Myloc to deliver the Myloc Construction system solution as a digital control tower and platform for the logistics operations.
Designing a logistics solution for the project
Myloc and Metier first got to work on a feasibility study that highlighted the challenges and potential risks that needed to be addressed to meet Morrow’s demands concerning sustainability, insight and control. This study laid the groundwork for setting up the comprehensive logistics plan.
The key findings of the study included:
- Understanding the detailed logistics process – Important for general management and risk mitigation
- Logistics resource management and on-site sourcing are critical
- Space management on site is crucial to avoid congestion
- The logistics solution needed to integrate the supply chain with the site logistics. Two examples:
- The deliveries of equipment from sea containers to the Port of Arendal, and the following transport to the site and installation points
- Development of a concept for a smart and robust reception on-site, enabling short-time storage and organized delivery to the point of installation
“The pre-study in itself became a success factor for us as it refined our plans and ideas, and through the planning process we made major adjustments that greatly improved our strategies. Although we were working with limited knowledge we covered many possible scenarios, analyzing volumes, time, resources and risks to create foundational systems and flows of dependencies for managing the project requirements”, says André Stiansen, Logistics Manager at Morrow Batteries.
Implementing the logistics solution for the project
The logistical strategies were tested and verified. Digital processes were set up to report and track the project’s complex supply chains. With training and support from Myloc the team at Morrow was soon able to manage the project progress independently and build further on the existing flows in Myloc Construction’s system. Using standardized scannable tags and labels from the equipment manufacturers in South Korea made deliveries efficiently traceable for operators on site. At organized unloading zones resources were separated based on when and where they would be best used. Potential congestion hazards were identified and could largely be avoided.
André continues “The solution worked exactly as designed, with clear communication and minimal hindrances from lost items leading to significant cost savings.”
Managing logistics during the construction phase
The logistics solution covered several components:
- Central logistics management
- Site logistics team
- Port of Arendal (warehouse)
- Freight forwarder – Rhenus (container deliveries, shuttle cars between port and site)
- All suppliers and installation contractors
All the above logistics were managed through Myloc Construction. This provided a visual platform that tied together the supply chain and site logistics, allowing for more proactive management and control with detailed planning and administration.
Features like the system’s map function gave oversight to all project participants and mapped out vital access points which facilitated increased coordination. Staff, contractors, suppliers, and freight forwarders like Rhenus were all integrated into Myloc Construction.
Having everyone work in a single system moved responsibilities downward in the organization. Suppliers, sub-suppliers and contractors with field-specific expertise could organize and handle their bookings themselves. Project administrators gained better information access and use of time-saving automated functionalities like invoice creation.
“Project logistics management is absolutely essential in this kind of project. Morrow Batteries have had the right approach and given this the required attention and priority and as far as we understand, it has paid off handsomely” comments Anders Eklund, Director of Myloc Construction at Myloc.
Lessons learned
“All agree, both from our side but also our suppliers etc, that a system like Myloc is very much required for a project of this nature”, André from Morrow states. “Of course, there is still room for improvement and we’ve already identified areas where we could utilize the logistics system to a greater extent. For example, securing internet access and Wi-Fi connection at the construction site from the start to enable accurate and easier reporting for our operators at every stage. We are also looking into integrating Myloc Construction even further upstream in our supply chains in the future. We see great opportunities in being able to track containers and pallets from when they are in transit on freight carriers, before they arrive and are unpacked in our harbor, and allocate manpower and resources accordingly to minimize delays.”
By tracking all logistical activities in Myloc Construction, Morrow has amassed detailed data, e.g. covering the total amount of packages transported, the number of vehicles that have arrived on site, the number of kilometers driven in these deliveries, the number of hours spent on the on-site logistics, etc. Intelligence regarding resource requirements and waste removal down to individual truckloads has enabled exhaustive analysis. Not having to rely on estimates, makes it possible to calculate and anticipate the demands for Morrow’s continued plans for expanding the facilities. Accurately converting freight shipments into pallets and forecasting waste management needs enables more accurate input for RFQs.
“The system can help project owners, contractors and suppliers improve logistics on especially congested construction sites. This can, amongst other things, result in less injuries, better-improved resource utilization, and a more sustainable way of working. Together with Myloc we have several projects that have gained these benefits through using Myloc Construction” says Jan Eklund, head of the Construction department at Metier.
Next steps
At the time of writing in June 2024, the Morrow Cell Factory project nears completion and Morrow is getting ready to tackle their next chapter of growth and construction. André notes how Myloc Construction has become the foundation for continued success.
“We have now built our first factory at the site in Arendal, a one Gigawatt “proof of concept”. The next step is to ramp up and transfer everything we’ve learned into the next construction phase. For us, that means building further on the strategies we have established and multiplying everything to a significantly larger scale as our objective is to create a 43-gigawatt factory complex over the next years. We have set the baseline for future projects, and I anticipate Myloc Construction to be even more useful during the construction of the bigger site.”
Morrow’s pilot factory is set to be inaugurated in August 2024. Read about the project on their site or learn more about Myloc Construction and what we can do for your project here.
