Ceva Logistics has signed a new warehousing and distribution contract with Continental worth more than $50m (£33m).

The five year contract will see Ceva manage the tyre manufacturer’s 21,000m² warehouse, including the receiving, storage and dispatching of around three million tyres every year. It will also transport the company’s tyres around the UK.

Stewart Jackson, supply chain director of Continental said: “Ceva and Continental share a joint commitment to lean methodology, process improvement and optimisation techniques. We were also impressed with the ingenuity Ceva showed with regards to its storage strategies and transport management systems.

“With these aspects in mind, we are delighted to be partnering with Ceva in such a collaborative manner and look forward to recognising the benefits that this will bring to our overall supply chain performance.”

Michael O’Donoghue, Ceva MD UK, Ireland and Nordics, said: “I’m absolutely thrilled to announce this new agreement with Continental. The team has designed a truly excellent collaborative solution which will deliver greater efficiency fuelled by our unyielding commitment to continuous improvement.

“With the clear similarities in our operating cultures and with the hybrid management operating model in place, I’m extremely confident that the operation will realize its full potential in the very near future.”