Ceva Logistics subsidiary AV Manufacturing (AVM) is providing General Motors with complete dressed-up engine supply chain services from its warehouse in Gravatai, Brazil.
Working with GM, Ceva has created a bespoke solution for the company called Direct Buy, which can be integrated into GM’s existing supply chain and is aimed at reducing inventory and ensuring just-in-time delivery of engines to the production line. It includes production scheduling, acquisition of components from 30 vendors, inbound transportation of parts, sub-assembly of engines (dress up) and sequencing for the GM installation.
The move follows the acquisition of Delphi assets at the Gravatai complex in March which put Ceva in control of an 8,000m2 warehouse and gave it responsibility for the full range of services involved in the supply and sub-assembly of front suspension systems (read more here).
The purpose built operating facility in Gravatai was established in 2006 to house a production line for sub-assembly of engines. AVM has been carrying out sub-assembly operations on engines for two years at Gravatai, which makes the GM Prisma and Celta cars, and has sub-assembled more than 400,000 units.
“With this project we are demonstrating our capability of implementing full solutions, overcoming the traditional logistics limitations and maintaining our position in the forefront of the market,” said Giuseppe De Vincenzo, Vice President of CEVA Logistics in Brazil.
AVM will use a material resource planning system allowing the procurement of materials and management of inventory, according to GM’s production schedule.