Subscribe to our free, weekly email newsletter!


CEVA Logistics CEO feels good about company’s future prospects

By Jeff Berman, Group News Editor
October 28, 2013

As shippers’ businesses go, those of third-party logistics (3PL) services providers follow suite, according to CEVA Logistics CEO Marv Schlanger.

Speaking at a media breakfast at last week’s Council of Supply Chain Management Professionals Annual Conference in Denver last week, Schlanger cited various drivers of CEVA’s customers business that extend to the Netherlands-based 3PL, including market volatility which in turn makes supply chain control and visibility critical to customers.

“It is no surprise that the global economy is tough,” he said. “There are very few sectors today where feel comfortable with volume and margin pressure. This means we have to perform, provide better quality and be more adaptive for both the products and services we offer.  Today everything is global, especially our customers. They need to know where their goods are at any given point in time. The demands of our customers’ customers are increasing, which means we have to focus on quality, speed, and price. That puts pressure on us, because our customers are talking about procurement spend, needing flexibility in their operations, and about inventory optimization.”

Other factors playing a role in how 3PLs need to react to customer needs cited by Schlanger include costs and growing demand in emerging markets, as a 3PL’s footprint becomes critical to customers and their ability to meet the requirements of their own customers, too.

Shifting over to CEVA’S performance as a company, Schlanger said 2013 has been an interesting year for CEVA, explaining in many ways it had to rebuild the foundation of the company.

“This time last year, we announced a cost reduction program, taking $100 million Euros ($137.8 million U.S.) of costs out of the company in the fourth quarter of 2012 and the first quarter of 2013,” he said.  “We also announced the recapitalization of the company, where we rebuilt the balance sheet by eliminating $1.3 billion Euros of debt ($1.7 billion U.S.) and receiving receive a capital infusion of a minimum of $301 million ($230 million euros) for investment in its business plan. That was very significant and important in order to build a strong financial future for CEVA.”

With a healthier balance sheet intact, Schlanger said CEVA is now able to focus on growth for its customers, bringing in new services and investments to help support their business, which is being reflected in recent customer wins with large shippers, including Ford, Michelin, and IBM, among others.

“We have really good traction in the marketplace, and we are happy with our position today,” said Schlanger. “We are focused on growing our footprint and our position in the marketplace. Our goal is to create value and logistics excellence, which is our theme and what our customers want and want to hear from us.  We feel good about the company and have put a number of issues behind us, and the company is well positioned for future success.”

About the Author

Jeff Berman headshot
Jeff Berman
Group News Editor

Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

The trend of rising weekly diesel prices remains intact, with the Department of Energy’s Energy Information Administration (EIA) reporting this week that the average price per gallon of diesel gasoline increased 1 cent to $2.914 per gallon.

When the United States House of Representatives last week voted extend current law and authorizes surface transportation programs through the end of July by a steep margin, it was widely expected that the United States Senate and follow their lead. That is exactly what happened on Friday, May 22, with the measures headed to President Obama to be signed into law.

For the month of April, Cass and Avondale found that truckload rates in April, which measures truckload linehaul rates paid during the month, were up 3.8 percent annually, while intermodal dropped 1.9 percent annually during the same period.

Following the Pacific Maritime Association (PMA) signing off on ratifying a new five-year contract with the International Longshore & Warehouse Union (ILWU) on May 20, the ILWU followed suite on May 22, saying that 82 percent of its longshore worker members voted to ratify the tentative contract agreement between the parties that was reached on February 22.

Straying from its typical seasonal trajectory, United States-bound waterborne shipments dipped from March to April, according to data recently issued by Panjiva, an online search engine with detailed information on global suppliers and manufacturers.

Article Topics

News · 3PL · CEVA · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA