Madrid, Spain, 28 May 2010 – CEVA Logistics, a leading global supply chain management company, today announced a five year agreement, worth a total of €50 million, with AKI, leading DIY (Do-It-Yourself) company selling, gardening and decorating products. AKI has a network of 35 stores in Spain and is a sub brand of ADEO Group, one of the world's market leaders in DIY with presence in 11 countries.
This contract award sees CEVA managing AKI’s end-to-end supply chain across Spain and it includes the management of the Consolidation Center for all products to be sold at AKI stores. CEVA will initially dedicate 30,000 sq m of space at the CEVA’s state-of-the-art facility in Ontígola, south Madrid, to the project with the ability to grow to 50,000 sq m.
CEVA will all also deliver freight management services and handle all inbound product flows from the Far East to Valencia Port, which include lighting, decoration, painting, plumbing and construction equipment and furniture items. In addition, CEVA will manage the distribution of products to the 35 stores that AKI owns in Spain, managing at first approximately 9.6 million units of products annually, with the possibility of reaching 18 million by the end of the five year contract following the expansion of the customer in the region.
AKI will use all the technological solutions offered by CEVA in order to provide maximum visibility of its supply chain, combining WMS Click (Warehouse Management Software) and Matrix TMS (Transport Management Software) enabling Track & Trace of the transported goods. Increased visibility of their supply chain allows AKI to better manage their inventory levels and respond quickly to changes in the market and demand.
Giuseppe Chiellino, CEVA’s Managing Director in Iberia, commented: "We are very proud that AKI has chosen us as its sole partner for its supply chain solutions. The long term partnership which both companies are fully committed to, will allow complete redesign of their supply chain and AKI will realize cost and efficiency savings that will support their growth in Spain. Our ability to provide an integrated solution meeting AKI’s needs, as well as our ability to deliver the smooth transfer of its current operations to our facilities in Ontígola, have been the key factors in achieving this agreement. We will be employing our ZDS process (Zero Defect Startup), which ensures that new projects are implemented without any disruption to the customer’s supply chain.”
Vicente Máñez, Logistics and Purchasing Director of AKI Spain explained: "AKI expects, in the next five years, to have a network of over 50 stores and therefore needs the competitive advantage that excellent logistics provides. We selected CEVA as a strategic partner due to the professionalism of the offered solution, their proactivity and excellence based culture. Their commitment to environmental care when carrying out their activities has been determinant for us: CEVA’s center in Ontígola is a clear example of sustainability, because of its specific energy saving and environmentally friendly devices, such as solar panels, collection and use of rainwater, as well as being a building that minimizes the visual impact on the environment."
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