Rolls-Royce has received a top industry award from the Institute of Logistics & Transport for a major initiative in its supply chain strategy.

The Award for Manufacturing Excellence was presented to one of the company`s procurement and logistics teams who re-structured a supply chain for low value, high volume aero-engine components.

The award recognises change which delivers significant benefits in manufacturing logistics, from managing inward supply chains to laying out plant and scheduling production. Emphasis is placed on ensuring smooth flow of materials through manufacturing with enhanced inventory management practice, and efficient use and control of stock within the supply chain.

Alan Naylor, Director of Logistics, Rolls-Royce said: "The supply chain strategy is one of several projects aimed at improving global logistics performance and represents an important step to improved customer service and inventory reduction. It has raised the profile of logistics in Rolls-Royce as a process requiring teamwork across the functions."

The re-structuring of the supply chain by the 'C' class parts team involved the selection in 1999 of Pattonair Logistics Ltd to deliver components and manage inventory. The initiative has resulted in savings of some £22 million to Rolls-Royce as well as reduced assembly lead times and improved customer support. Pattonair Logistics, a subsidiary of Umeco plc, set up a new distribution facility and IT infrastructure and have created the benchmark in aerospace logistics management for volume components.


Notes for Editors

Rolls-Royce plc
Rolls-Royce plc is a global company with established leading positions in civil aerospace, defence, marine and energy markets. Its core gas turbine technology has created one of the broadest product ranges of aero engines in the world, with 55,000 engines in service in over 150 countries. Customers include more than 500 airlines, 2,400 corporate and utility operators and 160 armed forces, using both fixed and rotary wing aircraft.

Pattonair Logistics
Pattonair Logistics specialises in tailored turn-key solutions for customers seeking to outsource their supply chain across a range of commodities. The development of `Rapid Replenishment Systems` allows Pattonair Logistics to optimise inventory at multiple locations within a customer`s supply chain. Global inventory management enables Pattonair Logistics to minimise inventory and smooth demand fluctuations across a supply base.

Pattonair Logistics is a subsidiary of Umeco plc, Europe's leading provider of value added distribution services to the aerospace and defence industries. In addition to Rolls Royce plc, Umeco's major customers include BAE SYSTEMS, British Airways, Marconi, Smiths Industries, TRW Lucas Aerospace, and the Ministry of Defence. Umeco is listed on the London Stock Exchange, with a market capitalisation of some £125 million.