AKI chooses CEVA as its logistics partner in Spain

CEVA Logistics has clinched a five-year deal worth a total of EUR50 million (US$61.4 million) from AKI, a 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, which has a 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 Centre for all products to be sold at AKI stores. CEVA will initially dedicate 30,000 square metres of space at the CEVA's facility in Ontigola, south Madrid, to the project with the ability to grow to 50,000 square metres, a company statement said.

CEVA will all also deliver freight management services and handle all inbound product flows from Asia 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 9.6 million product units annually at first, with the possibility of reaching 18 million by the end of the five-year contract following the expansion of the customer base 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 and trace of transported goods. Increased visibility of their supply chain is expected to allow AKI to better manage its inventory levels and respond quickly to changes in the market and demand.

"We are very proud that AKI has chosen us as its sole partner for its supply chain solutions. The partnership will allow complete redesign of their supply chain and AKI will realise cost and efficiency savings that will support their growth in Spain," said CEVA Iberian managing director Giuseppe Chiellino.

Said AKI Spain logistics chief Vicente Manez: "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."
(Source:www.schednet.com)