CEVA Logistics has announced a five-year, $50 million contract to provide UK warehousing and transportation services to tyre manufacturer Continental.
CEVA will reportedly manage Continental’s 21,000sqm warehouse at Rugby, which will involve receiving product, storage and dispatch activity of around three million tyres each year. CEVA will also manage Continental’s UK transport requirements.
According to CEVA, the solution designed for Continental includes a collaborative hybrid management model with a joint steering committee at the top of its operational structure.
Stewart Jackson, Supply Chain Director of Continental said, “CEVA and Continental share a joint commitment to LEAN methodology, process improvement and optimisation techniques…we are delighted to be partnering with CEVA in such a collaborative manner and look forward to recognising 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. 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.”