Despite a 58.3% drop in profits in the first quarter, Ceva Logistics has reported wins in automotive inbound business since March, including materials and supply chain management. The results come as stock levels at OEMs reach the point in which production is being increased says the company.
“We have recently won the contract for all of Aston Martin’s inbound logistics in the UK and a lot of our new business in the first quarter also relates to supply chain management support for Iveco in Italy and warehouse management for BMW,” said Ceva’s Global Key Account Director for Automotive, Chris Senior.
The new contract with Aston Martin involves domestic, European and international transport and the company will handle sequencing, kitting and line feeding operations, incorporating just-in-time, production line parts replacement. The previous contract was handled by NYK.
“Having reached the end of our previous provider agreement we put the contract to tender with the intention of maintaining our unique craftsmanship approach in manufacturing, while also delivering production efficiency,” Matthew Clarke, Product Communications Manager, Aston Martin Lagonda, told Automotive Logistics.
“Based on a number of factors CEVA were our choice. This should not in any way be viewed as a negative reflection on our previous providers, NYK, with whom we have enjoyed a productive relationship over the last five years.”
Talking more about its OEM contracts abroad, Senior said Ceva had seen some agreements for the operations of inbound manufacturing support facilities for Ford in the US.
The company is supporting manufacturing customers by giving them the maximum possible degree of flexibility because they are not able to work with a very long term horizon.
“They are only able to plan production reliably one month in advance in many cases. With the current situation it is only possible to adapt schedules in the short term,” Senior continued. “From our end, we are giving them sufficient room for changes since a plant that might work one full week may only work three days during the next week. This means that for inbound collection we have to modify our pick up routes to meet these changes. Also for the handling in the plant we must adapt to reflect these requests.”