PSA Group places EUR 8 billion contract with Gefco

The agreement to optimise the global supply chain of the car manufacturer will take effect on 1 January 2017 for a period of five years

PSA Group places EUR 8 billion contract with Gefco

Under the new EUR 8 billion exclusive 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.

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. 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 about 50 countries 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.;