Gefco to Optimise PSA Group’s Global Supply Chain in €8 Billion Deal

3rd November 2016

Logistics BusinessGefco to Optimise PSA Group’s Global Supply Chain in €8 Billion Deal

The PSA and Gefco groups have signed a new €8 billion exclusivity agreement under which GEFCO will manage and optimise the automaker’s entire global manufacturing supply chain. The agreement reaffirms that Gefco is the PSA Group’s leading supplier in Europe, number two worldwide. The agreement will take effect on 1 January 2017 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.

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.

The agreement will cover all of the countries (i.e., about 50) 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.