CEVA Logistics completes phase one of Rolls-Royce aero logistics project

CEVA Logistics has completed the first phase of its aero logistics project with client Rolls-Royce, establishing three app-integrated hubs or “supply chain control towers” in Ashby-de-la-Zouch, U.K., Singapore and Jacksonville, U.S.

The logistics company currently moves more than 1,200 shipments per week – from small parcels to out-of-gauge loads – for the company each week, which are distributed to Rolls-Royce facilities across the U.K., Germany, the United States and Singapore.

The project’s objective is to renovate the client’s inbound inventory procedures in its civil and defense divisions by consolidating and centralizing its data into one source, made accessible by its “Matrix Mobile” app. At this time, it has transitioned more than 800 of Rolls Royce’s suppliers into the platform.

Supply chain management platforms aim to reduce expenditures that are traditionally perceived as “the cost of doing business,” such as optimizing clients’ operations. CEVA said the integration of its version of the service has given Rolls-Royce the ability to “interrogate their cost base to precisely match their business requirements,” specifically, enabling the company to plan farther in advance and reduce the volume of freight that must be expedited, which piles on extra costs.

CEVA released less-than-stellar second-quarter earnings last week, which reported a net loss of US$45 million – unchanged from 2Q17. Its Freight Management segment, however, reflected that second-quarter revenue was up 8.1 percent to $853 million.

The company said “domestic plant-to-plant shipments and a new cross-dock solution, combined with Matrix mobile, are also planned for phase two of the project.”