CEVA Strikes Bigger Supply Chain Management Deal With Ford

By SCMR Staff
June 26, 2014 - SCMR Editorial

Global third-party logistics (3PL) services provider CEVA Logistics said this week it has expanded its relationship with automotive bellwether Ford Motor Company. CEVA and Ford have had a business relationship for more than 20 years.

CEVA said it will provide inbound transportation logistics services for Ford’s Coldwater, Michigan-based Coldwater Origin Distribution Center (ODC), adding that its transportation operations will be based in various Michigan locations and provide pickup and delivery to the Coldwater ODC.

“It’s a tremendous privilege for CEVA to help support the expansion of this new Ford facility.  We are proud and excited to receive this award of business from one of our largest global customers,” said Kerry Zielinski, CEVA’s Vice President of Business Development and Ford account lead for the Americas, in a statement. “Our customer’s growth in the Automotive industry has fueled our company’s expansion and market leadership in the Automotive sector as well.”

A CEVA spokesman told LM that this business award was first part of a study to determine if this supply chain change improved the existing network.

“Any change in a supply chain variable like this involves routing changes, mode changes and of course the flow of material to plants,” the spokesman said. “We were selected to bid to support this new ODC in early 2014.”
The inbound transportation services being provided by CEVA at Ford’s Coldwater ODC include truckload and milk runs. The spokesman declined to disclose how many CEVA employees will work out of this facility as a matter of company policy.

Last September, CEVA renewed its contract and expanded its business with Ford.

CEVA has served Ford’s Kansas City Assembly Plant (KCAP) for more than 11 years, and with a new contract in place it will continue to provide the automotive manufacturer with various logistics-related functions at the Claycomo, Missouri-based KCAP, including sequencing of inbound materials, small lot logistics, return container management and just in time transportation to and from the plant.

The KCAP manufactures the F-Series truck and will be the future home of the Ford Transit, according to CEVA officials. They also noted that the Kansas City operation is CEVA’s longest running automotive manufacturing support operation for Ford in the Americas.

The automotive sector continues to make strides as an integral part of the slow-paced economic recovery as evidenced by increasing new automotive sales and on the manufacturing front, too.

Earlier this month, the Wall Street Journal reported that U.S. auto sales rose 11 percent in May, with industry sales hitting1.6 million vehicles and the seasonally adjusted annualized selling rate coming in at 16.77 million cars and light trucks, according to data from market researcher Autodata Corp.



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

For November, which is the most recent month for which data is available, the SCI came in at -3.2. While this is still entrenched in negative territory, it represents an improvement over October and September, which were -5.5 and -6.6, respectively.

Total December shipments––at 1,150,810––were 3 percent better than November and up 5 percent annually. And total 2014 shipments––at 14,092,551––were up 5.61 percent, setting a new record for annual shipments during the time which Panjiva has been collecting this data since 2007.

The biggest story in the energy sector has to be the 30% decline in oil prices since June to a level not seen since the global recession cut a whopping 6% from global consumption back in 2009.

The challenge for air cargo operators to fill capacity, and the confidence to add capacity, remain the same as the demand curve for air freight services recovers.

For the fourth quarter of 2014, UPS said it anticipates adjusted diluted earnings per share of roughly $1.25, with full-year 2014 adjusted diluted earnings per share at $4.75, which represents a 3.9 percent annual gain over 2013’s adjusted earnings per share of $4.57, with full-year 2014 diluted earnings pegged at around $3.28 per share, which is 28.9 percent below 2013’s $4.61.

Article Topics

News · 3PL · Logistics · Transportation · All topics

About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review. Patrick covers international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. Contact Patrick Burnson

Comments

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