The French automotive group PSA has awarded an EUR 8 bln exclusivity agreement to 4PL provider GEFCO to manage and optimise the automaker’s entire global supply chain. The agreement reaffirms that GEFCO is the PSA Group’s leading supplier in Europe, number two worldwide. The 5-year agreement will take effect on 1 January 2017.
Under the agreement, 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, GEFCO will be responsible for distributing spare parts.
As a 4PL provider, GEFCO will be the PSA Group’s sole partner in putting in place optimised multi-modal processes that combine rail, road, sea, air and inland water transport to create end-to-end solutions, being responsible for coordinating the suppliers chosen to take part in the supply chain following calls for tenders. A central part of its integrated role will be applying its advanced logistics engineering skills, in combination with high-performance IT and data management systems, to provide real-time tracking and ensure the seamless interplay of the supply, storage and distribution chains.
The agreement will cover all of the countries, around 50, where the PSA Group currently operates, whether in manufacturing or distribution.
In January, 2013 PSA Group sold the shares of Gefco, which was its logistics subsidiary, representing 75% of the capital and voting rights to Russian Railways for EUR 800 mln, retainining the remaining 25% stake.