Ceva Logistics has added a fourth business division to its operations that will focus on ground transport services and run alongside its existing air, ocean and contract logistics units. The new division will be headed by Jérôme Lorrain, who is taking up the position of chief operating officer (COO).
The services provided by Ground Transportation were previously handled by freight management and contract logistics, according to Lorrain. They encompass all freight movements by road or rail, domestically and internationally, including full truckload and less-than-truckload (LTL) movements.
“As our customers are now looking more into best-in-class in every field of the supply chain we thought it would be of value to articulate this service offering within its own business line,” Lorrain told Automotive Logistics. “[It] will enable us to be even more professional in this particular field, which represents a substantial part of our overall business.”
Ceva said its ground operations, as with its other business areas, will be organised according to its ‘local cluster strategy’, which was introduced in 2014 as part of a (then) new operating model. http://automotivelogistics.media/news/ceva-posts-automotive-wins-while-overall-profit-drops-reorganises-global-operations
According to Ceva, the model eliminates the existing region-based structures across the globe, replacing them with 17 local geographic clusters. This drives increased network efficiency and productivity by eliminating duplicate work and functions, as well as strengthening communication across the business.
“This will also be really great for our customers as Ceva will now be providing a consistent service when it comes to customer operations in two different continents or geographies,” said Lorrain.
In terms of investment, Lorrain said the company would remain asset light in line with its position as a traditional 3PL, but added it would buy assets strategically.
“The asset deployment will be done whenever necessary and on the back of already existing activities to support customers,” said Lorrain. “It is not our primary intention to invest in trucks but we can always make some exceptions whenever it makes financial sense.”
In October last year, Ceva announced a $20m investment in its UK ground transport fleet. That sum bought it 120 tractor units, 40 rigid vehicles and 180 new trailers.
In terms of other investments, Lorrain said Ceva’s crossdock network would be developed on the back of its contract logistics business, which he said was one of the densest of the industry, and added that IT enhancement would certainly play a major role of the company’s development.
“By adding this fourth business line we have an opportunity to even better leverage the existing network we have in some parts of the world, and reinforce our air, ocean and contract logistics global product offering,” Lorrain said.
The ground transportation business will be launched in the US and Lorrain will be based at Ceva’s US corporate headquarters in Houston, Texas, one of the company’s largest operations. He moves there from his role as executive vice president of the Balkans, Africa, Middle East and Central Asia (BAMECA).
Lorrain’s successor as executive vice president for the BAMECA cluster will be Fuat Adoran, currently managing director of the company’s Turkey and Balkans sub-cluster.