PSA and GEFCO groups have inked an EUR8bn (US$8.8bn) exclusivity agreement under which the logistics provider will manage the automaker’s entire global manufacturing supply chain.
The agreement will take effect on 1 January, 2017 for a period of five years.
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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.
GEFCO will be PSA Group’s sole partner in putting in place multi-modal processes, which combine rail, road, sea, air and inland water transport to create end-to-end solutions. It will also be responsible for coordinating component producers chosen to take part in the supply chain following calls for tenders.
A central part of its integrated role will be applying its logistics engineering, in combination with IT and data management systems to provide real-time tracking and ensure the smooth operation of supply, storage and distribution chains.
The agreement will cover all countries – around 50 – where PSA Group currently operates, whether in manufacturing or distribution.
“The agreement will be a powerful driver of improved operating performance at the PSA Group,” said PSA Group EVP, purchasing, Yannick Bézard.
“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 is also teaming with GEFCO to develop supply chain and manufacturing solutions for future projects, to be carried out in collaboration with external partners or alone.
“All GEFCO’s teams are actively committed to meeting our customers’ need for efficiency,” said Gefco chairman, Luc Nadal.
“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.”
