Release Date: 05 September 2008
Release ID: 1435
Today Wärtsilä, a market leader in diesel and natural gas engines, biopower solutions and complete propulsion systems and CEVA Logistics, one of the leading supply chain companies in the world, signed a cooperation agreement for the 24/7 global spare parts transportation management and “control tower” activities for Wärtsilä Services. The contract value is approximately EUR 32 million per annum over the next three years. The agreement follows Wärtsilä´s earlier announcement of its intention to centralize spare parts logistics and to build a Central Distribution Center facility in the Netherlands. The new operating model is planned to be fully implemented by 2011.
CEVA Logistics will take responsibility for shipments of spare parts to Wärtsilä’s various warehousing facilities in Europe and for the spare parts deliveries to Wärtsilä’s international customers. Until today Wärtsilä’s seven product companies in Finland, Italy, the Netherlands, France, Sweden, Norway and Switzerland, are responsible for the global logistics of the spare parts for their own products. A centralization of these activities will result in faster and more efficient spare part deliveries. Key is to provide visibility, transparency and service improvement of all flows.
“Consolidating logistics with a specialized partner will improve customer service globally by allowing parts deliveries 24 hours a day 7 days a week,” comments Tage Blomberg, Group Vice President, Wärtsilä Services. “The set-up will also support our growth targets in the fast moving business environment to become a world class service provider.” adds Blomberg.
“CEVA is very proud to partner with Wärtsilä,” says Onno Meij, Managing Director of CEVA Logistics Benelux, Nordic Region & France. “The redesign of the spare parts logistics is a program of strategic importance for Wärtsilä and we are honored to be given the trust to support this important step. We have been preparing the implementation of the transportation consolidation in a joint 24/7 project team during the last months. This teamwork gives the cooperation an excellent position to deliver efficient logistics services to Wärtsilä’s customers.”
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