CEVA Logistics has been awarded a major new contract to provide UK warehousing and transportation services to Continental, one of the world's leading tire manufacturers and distributors.
Under the new five year contract, worth over $50 million, CEVA will manage Continental's 21,000 square meter warehouse at Central Park, Rugby which will involve receiving product, storage, and dispatch activity of around three million tires each year. CEVA will also manage Continental's UK transport requirements, which is backed by a dedicated CEVA fleet as well as a network of regional partners.
CEVA has a strong track record for developing effective partnerships with its customers, underlined by its recent recognition at the 2015 Motor Transport Awards, where it won the Partnership award category. The solution designed for Continental is no different and includes a collaborative hybrid management model with a joint steering committee at the top of its operational structure to ensure a true partnership approach to the successful running of the operation.
The solution also utilised CEVA's global expertise and the company's SMART Solutions in the tires market. Such solutions are based on best practices for a variety of sectors and are a key part of CEVA's commitment to continuous improvement and innovation, while supporting its drive to continue offering market-leading, efficient supply chain solutions to its customers.
Stewart Jackson, Supply Chain Director of Continental said: "CEVA and Continental share a joint commitment to LEAN methodology, process improvement and optimization techniques. We were also impressed with the ingenuity CEVA showed with regards to it storage strategies and transport management systems. With these aspects in mind, we are delighted to be partnering with CEVA in such a collaborative manner and look forward to recognizing the benefits that this will bring to our overall supply chain performance."
Michael O'Donoghue, CEVA's Managing Director, UK, Ireland and Nordics said: "I'm absolutely thrilled to announce this new agreement with Continental. The team has designed a truly excellent collaborative solution which will deliver greater efficiency fuelled by our unyielding commitment to continuous improvement. With the clear similarities in our operating cultures and with the hybrid management operating model in place, I'm extremely confident that the operation will realize its full potential in the very near future."
For CEVA globally, this announcement builds on the launch of its TireCity in Italy. Announced in June, the hub, which covers an area of 50,000 sq m, is strategically located in Somaglia, in the province of Lodi, and is fully dedicated to the warehousing, handling and cross docking of products in the tire market.
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