Ceva Logistics has been chosen to operate an NDC for Caterpillar equipment dealer Finning, replacing five in-house operations.

Under the deal, Ceva will operate a 120,000ft² site on the Lakeside Estate in Cannock, Staffordshire, for six days a week. The NDC will house all of Finning’s engine stock, plus some 60,000 product lines.

The contract also includes next-day delivery to 800 field engineers and 28 dealerships across the UK and Ireland, moving an expected 10,000 items per week.

Ceva claims to have consolidated stock from five Finning in-house sites to the Cannock hub in five weeks.

Steve Smith, Finning UK’s parts operation manager, said: “The transfer of approximately two million parts items from numerous storage locations into one central facility was achieved, whilst of course retaining the level of service that our customers expect during the transition.

“This significant investment not only meets the needs of today, but also factors in plenty of capacity for our future growth plans."

Earlier this month Ceva was appointed to manage a European DC for Gulfstream Aerospace Corporation.