Car maker PSA of France has signed a new €8bn "exclusivity" agreement with fourth party logistics (4PL) provider GEFCO to manage and optimise the automaker’s entire global manufacturing supply chain.
The five year agreement, which includes airfreight in a multimodal supply chain solution, will take effect from January 2017.
GEFCO will design and implement global logistics and transport solutions for the three PSA Group brands: Peugeot, Citroën and DS.
It will manage and optimise the entire supply chain, from sourcing components for production and assembly plants to distributing finished vehicles. In addition to these outbound and inbound logistics services, GEFCO will be responsible for distributing spare parts.
The agreement will cover around 50 countries where the PSA Group currently operates, whether in manufacturing or distribution. Its implementation will increase GEFCO's “buying and pooling power to the benefit of all its customers”, said the 4PL.
France-based GEFCO has two shareholders: PSA Peugeot Citroën with 25%, and RZD Russian Railways with 75% of the capital.
Yannick Bézard, PSA Group’s executive vice-president, purchasing, said: “The agreement will be a powerful driver of improved operating performance at the PSA Group. We have every confidence in GEFCO’s ability to partner us as we navigate a challenging transformation, pursue new business opportunities and develop internationally.”
The PSA Group, with €54bn of sales and revenues in 2015, is also teaming up with GEFCO to develop supply chain and manufacturing solutions for future projects, “to be carried out in collaboration with external partners or alone”.
Luc Nadal, GEFCO’s chairman of the managing board, said: “All of GEFCO’s teams are actively committed to meeting our customers’ need for efficiency. Every day, they demonstrate their ability to support our customers as they grow internationally, while working with them to tackle their long-term growth and profitability challenges.”
