CEVA Logistics, one of the world’s leading supply chain management companies, announced its subsidiary AV Manufacturing (AVM) had been named as a Tier One supplier for General Motors. As the first logistics operator in South America to be selected as a systemist, CEVA will provide complete dressed up engine supply chain services from its warehouse in Gravatai, located in the countryside of Rio Grande do Sul State.

In partnership with the customer, CEVA has created a bespoke solution for the contract, called Direct Buy. Designed to be integrated with GM’s existing supply chain, the service includes production scheduling, acquisition of components from the 30 vendors, inbound transportation of parts, sub-assembly of engines (dress up) and sequencing for the GM installation.

The purpose built operating facility in Gravatai was erected in 2006 to house a production line for sub-assembly of engines. In 2009 AVM started an identical operation with a suspension and rear axle module supply chain in the same industrial complex.

“With this project we are demonstrating our capability of implementing full solutions, overcoming the traditional logistics limitations and maintaining our position in the forefront of the market”, says Giuseppe De Vincenzo, Vice President of CEVA Logistics in Brazil.

The Direct Buy solution aims to significantly reduce inventory, achieving just in time delivery of GM’s engines at its production line. To ensure seamless operations, AVM will use the MRP system, an inventory management software program, which allows the procurement of materials and management of inventory, according to GM’s production schedule.