infoTECH Feature

March 18, 2009

CEVA Logistics Gains Supply Chain Contract from General Motors

Supply chain management company, CEVA Logistics, recently announced that its subsidiary AV Manufacturing (AVM), has gained a major supply chain contract from General Motors and to proceed this, it has acquired the assets of Delphi.

General Motors (News - Alert) Corp. is a global company and a well recognized automaker, focused in the manufacturing of cars and trucks in 34 countries. With its global headquarters in Detroit, GM employs nearly 244,500 people and sells and services vehicles in close to 140 countries.

The contract, as stated by CEVA (News - Alert), has enabled AVM to consolidate its position as one of the reputed suppliers for the Automotive Industrial Complex of General Motors, in Gravatai, a place that is located in the countryside of Rio Grande do Sul State.

As per the agreement of AVM’s contract with General Motors, AVM will be in charge of the sub-assembly of front suspending structures and back axis of GM's Prisma and Celta cars. The solution will include the management of an 8 thousand square meters warehouse and all the equipment that will be used for the GM service.

Additionally, AVM is said to be responsible for the entire portfolio of services included in the sub-assembly of suspension devices and axis, consisting of the programming and purchase of 60 different components, national and international transportation, storage, sub-assembly and sequencing.

The delivery of AVM’s service is said to be made using the just in time model sequenced for GM.

"CEVA is the only logistics operator to develop this kind of service in South America. We believe that full logistics solutions for assembly supply chains is a market trend, and CEVA is taking full advantage of it", says Paulo Franceschini, director, business development.

AVM is also stated to have achieved the ISO/TS 16949 Certification which consequently enabled recognition for the company in the specific topic of QSB (Quality System Basic) of the GM customer.

AVM has also sub-assembled nearly 400 thousand engines and has furthermore presented technological innovations for GM's assembly line, with the implementation of 28 Poka-Yokes (error-proof systems), as well as 16 biometric readers.

AVM is also planning to develop its own MRP system for component programming control, which will be in charge for the entire manufacturing and programming management area.

CEVA Logistics has been offering end-to-end design, implementation and operational solutions in contract logistics and freight forwarding to large and medium-sized national and multinational companies. The company is stated to have employed 56,000 people with facilities in over 100 countries. In August 2007, CEVA acquired EGL.

Jai C.S. is a contributing editor for TMCnet. To read more of Jai's articles, please visit his columnist page.

Edited by Patrick Barnard
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