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Growth Strategy
Corporate
Governance
Business Review
Corporate Policies
Management’s
Discussion
and Analysis
Statistics
GEFCO’S INTERCONTINENTAL LOGISTICS PLATFORM IN LE HAVRE
Gefco has built a new intercontinental logistics platform in Le Havre to serve a full range of customers.
The first, however, has been PSA Peugeot Citroën, which is using the 32,000 square-meter facility to ship
automotive parts to Group plants outside Europe.
Known as PLIP, the platform currently manages 5,000 different parts, collected from around 500 European
suppliers and shipped by sea to assembly plants in Porto Real, Brazil and Buenos Aires, Argentina.
It represents the latest generation of an integrated international supply chain, supported by the
new Geolog information system offering real-time dialogue between Latin American production centers,
European suppliers, Gefco Le Havre and the major Automobile Division corporate services, such as
Purchasing and Accounting.
PLIP uses the cross-docking technique with zero inventory stored on the platform itself. Any order
from Brazil or Argentina for a European supplier is immediately notified to Gefco Le Havre, so that PLIP
can order packaging materials, obtain the right number of containers and prepare for shipping,
so that when the parts arrive, everything is in place for their immediate reshipment.
This real-time management of information and parts flows has yielded both financial and qualitative
benefits. The cycle time from parts order in Latin America to final delivery from Europe has been
reduced on average by a full week. In addition, all parts are systematically inspected on the platform
before reshipment and invoicing.
By 2004, PLIP will be handling enough parts to build 500,000 vehicles.
efficiency of customs procedures in dealing
with the Mercosur countries, Eastern
Europe and China, in particular as regards
the operation of bonded warehouses. A
larger number of joint groups were formed
with customers to improve competitiveness
based on Kaizen principles. The resulting
gains were significant and the groups are
continuing their work in 2003.
FINANCIAL RESULTS
Net sales were stable for the year, at
€2,646 million. At comparable scope
of consolidation, reflecting the sale of
Transauto in May 2001, sales were up 0.7%
despite a significant decline in the European
transportation market.
Although the European car market
contracted by 3%, Gefco’s Automotive
business rose by 1.9% during the year, as
billings outside France and the growing
contribution from the used car refurbishing
shops offset lower volumes in France and
Argentina. Thanks to faster development in
the Mercosur countries and central Europe,
the Network business held stable despite
weaker demand in Western Europe. The
Supply business was also unchanged at
comparable scope of consolidation, since
the major projects initiated in 2002 will not
have a full-year impact until 2003.
Operating margin totaled €135 million,
or 5.1% of sales, an increase of 13% from
the €119 million and 4.5% of sales
reported the year before. The improvement
was led by careful control over business
development in light of the uncertain
economic outlook, by sustained productivity
gains and by the continuing ramp-up of
high value-added businesses.
PSA PEUGEOT CITROËN - MANAGING BOARD REPORT 51