CEVA lands spare parts distribution deal with Finnish company
Finnish propulsion system maker W'rtsil' has signed a deal with CEVA Logistics for 24/7 global spare parts transportation management and 'control tower' activities in Europe.
The contract is valued at about $46 million per year for the next three years. The agreement follows W'rtsil'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 to be fully implemented by 2011, the company said.
CEVA will take responsibility for shipments of spare parts to W'rtsil's various warehousing facilities in Europe and for the spare parts deliveries to W'rtsil's international customers. W'rtsil'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,” CEVA said in a statement. “Key is to provide visibility, transparency and service improvement of all flows.”