Neovia Logistics, a global supplier of logistics services, has signed a new long-term agreement with Schaeffler Automotive Aftermarket, a business division of Schaeffler, to both build and manage operations at a new €180 million state-of-the-art aftermarket kitting facility in Saxony-Anhalt, Germany.

Featuring industry leading innovations, the new site will occupy more than 40,000 square meters and house Schaeffler’s inventory of automotive aftermarket spare parts and repair solutions. Creating over 900 jobs, the operation will assemble and package close to 70 million repair kits from 40,000 different SKUs per year.

Neovia will manage day-to-day operations, utilizing the Neovia Operating System that drives continuous improvement and lean operations at Neovia facilities around the globe. Neovia’s operating system will support Schaeffler in their efforts to generate sustained improvements in quality of delivery and provide faster, more reliable and more flexible service to customers.

“A coherent overall concept and proven experience in the Aftermarket business – this convinced us after an intensive bid and selection phase,” said Michael Söding, designated Member of the Schaeffler AG Board of Managing Directors and Head of the company’s Automotive Aftermarket division. “With Neovia Logistics, we have the right partner to prepare our kitting and logistics for the challenges of the coming decade.”

“Neovia is excited to leverage our OEM heritage and more than 30 years of experience providing logistics services to support Schaeffler in serving their aftermarket customers,” said Neovia CEO Pat Olney. “Global companies like Schaeffler choose to work with Neovia because we have the know-how and passion to drive continuous improvement and provide real-world innovation that delivers value across every part of the supply chain.”

More than 40,000 different articles for passenger cars, light and heavy commercial vehicles, and tractors will be commissioned, packaged and dispatched at the new assembly and packaging center. Brands include LuK, INA, FAG and Ruville and products include clutch and clutch release systems, engine and transmission applications and chassis applications.

“The Schaeffler facility will be one of the largest, most advanced facilities of its kind,” said Neovia Chief Commercial Officer Sven Hoemmken. “We look forward to partnering with Schaeffler to innovate in ways that will deliver significant efficiencies to their business.”