CEVA Logistics has been awarded a contract to provide UK warehousing and transportation services to tire manufacturer and distributor, Continental.
Under the new five year contract, announced to be worth over $50m, CEVA is expected to manage Continental’s 21,000 sq m warehouse at Central Park, Rugby. CEVA plans to receive product, store it, and dispatch around three million tires each year. CEVA is also expected to manage continental’s UK transport requirements using a dedicated CEVA fleet and a network of regional partners.
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 OʼDonoghue, CEVAʼs 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, Iʼm 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.
