News | March 16, 2009

CEVA Logistics Wins General Motors Supply Chain Contract

CEVA Logistics, a leading global supply chain management company, recently announced that its subsidiary AV Manufacturing (AVM), consolidated its position as one of the top tier suppliers for the Automotive Industrial Complex of General Motors, in Gravatai (located in the countryside of Rio Grande do Sul State), by acquiring the assets of Delphi for its newly won business for General Motors. AVM will be in charge of the sub-assembly of front suspending structures and back axis of GM's Prisma and Celta cars. The solution will include the management of an 8 thousand square meters warehouse and all the equipment that will be used for the GM service.

AVM will be responsible for the entire portfolio of services included in the sub-assembly of suspension devices and axis, consisting of the programming and purchase of 60 different components, national and international transportation, storage, sub-assembly and sequencing. The deliveries will be made using the just in time model sequenced for GM.

"CEVA is the only logistics operator to develop this kind of service in South America. We believe that full logistics solutions for assembly supply chains is a market trend, and CEVA is taking full advantage of it", says Paulo Franceschini, Business Development Director.

After 24 months at the GM Plant in Gravatai, AVM achieved the ISO/TS 16949 Certification and became a reference in the specific topic of QSB (Quality System Basic) of the GM customer. In addition, it reached the milestone of 400 thousand engines sub-assembled with surprising quality ratings (99.97% of products approved by the customer). AVM furthermore presented technological innovations for GM's assembly line, with the implementation of 28 Poka-Yokes (error-proof systems), as well as 16 biometric readers, ensuring that only qualified employees can operate the work positions. AVM will also develop its own MRP system for component programming control, which will be in charge for the entire manufacturing and programming management area.

SOURCE: CEVA Logistics