The PSA and GEFCO groups have signed a new €8 billion exclusivity agreement under which GEFCO will manage and optimise the automaker’s entire global manufacturing supply chain. The agreement reaffirms that GEFCO is the PSA Group’s leading supplier in Europe, number two worldwide.
The agreement will take effect on 1 January 2017 for a period of five years.
In line with the profitable growth objectives set out in its Push to Pass plan, the PSA Group will be able to further improve its operating performance via this agreement, which is yet another show of confidence in GEFCO’s teams and the reliability of its services.
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 to these outbound and inbound logistics services, GEFCO will be responsible for distributing spare parts.
This strategic partnership is an affirmation of GEFCO’s expertise in designing and optimising complex supply chains. As a 4PL provider, GEFCO will be the PSA Group’s sole partner in putting in place optimised multimodal processes that combine rail, road, sea, air and inland water transport to create end-to-end solutions. It will also be 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 (i.e., about 50) 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.
“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,” said Yannick Bézard, the Group’s Executive Vice-President, Purchasing.
The PSA Group is also teaming up with logistics specialist GEFCO to develop supply chain and manufacturing solutions for future projects, to be carried out in collaboration with external partners or alone.
“GEFCO is proud to be chosen by the PSA Group as a trusted strategic partner. All of GEFCO’s teams are actively committed to meeting our customers’ need for efficiency,” said Luc Nadal, Chairman of the Managing Board of GEFCO.
“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.”