Ceva Logistics has signed a new contract with BMW for the management of warehouse operations in Australia. Ceva will now manage the receipt, storage, inventory and dispatch of service parts to 20 BMW car dealerships in Victoria, South Australia, Tasmania and West Australia, a process previously handled in house by the carmaker.
The operation will work out of a warehouse in Mulgrave, Victoria, 18km south east of BMW’s Melbourne CBD, handing 13,000 SKUs and 237,000 dealer order lines.
“The Mulgrave facility was our (single) national parts distribution centre,” said Martin Ellis, Parts Operations Manager for BMW Group Australia, “ but with the opening of our primary warehouse in Moorebank, Sydney, in April 2008, it has been reconfigured to stock the full range of fast and medium moving stock and assigned a satellite status.”
CEVA already manages warehouse operations at the Moorebank facility following a contract signed in October 2007. The facility serves BMW’s northern operational region (New South Wales, the ACT, Queensland and Northern Territory). Activity here is handled from a purpose built 12,500m2 distribution centre stocking a full range of parts and accessories for BMW with over 30,000 SKUs. With its support facility in Mulgrave, the carmaker can now deliver 95 per cent of its daily orders overnight by road.
“We currently use TNT Express for local and intra/interstate road freight deliveries, with TNT and Australian Air Express sharing the airfreight service,” said Ellis.
He added that BMW will commence three deliveries per day to Melbourne metro dealers as of January 2010.

At the signing, Managing Director for CEVA Australia, Howard Critchley said: “CEVA will now be able to provide a truly integrated national solution to further drive and improve service to BMW car dealerships across the country.” 

In other news this week CEVA’s chief financial officer Stuart Young left the company, though no reason was issued to explain the departure. The company simply released a statement from CEO John Pattullo stating: "Young has made a great contribution to CEVA over the past two years and I thank him for his efforts and support during this period."
Tom White, member of the CEVA Group's board of directors, has been appointed acting CFO. A Certified Public Accountant, White was previously CFO & treasurer of Hub Group. He will become a member of the CEVA executive board.