GEFCO awarded new €8 billion contract to manage and optimise PSA Group’s global supply chain

GEFCO awarded new €8 billion contract to manage and optimise PSA Group’s global supply chain

The PSA and GEFCO groups have signed a new €8 billion exclusivity agreement under which GEFCO will manage and optimise the automaker’s entire manufacturing supply chain. The agreement reaffirms that GEFCO is the PSA Group’s leading supplier in Europe, number two worldwide and will take effect in January of next year, lasting for a period of five years.

In line with the profitable growth objectives set out in its Push to Pass plan, the PSA Group will be able to further improve its operating performance via this agreement, which is yet another show of confidence in GEFCO’s teams and the reliability of its services. Speaking about the agreement Yannick Bézard, the Group’s Executive Vice-President, Purchasing had this to say: “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.”
Under the 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.

This strategic partnership is an affirmation of GEFCO’s expertise in designing and optimising complex supply chains. 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 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.