Rolls-Royce is changing the way it handles internal spares supply in a deal with outsourcing specialist Pattonair International. The initial agreement could lead to a wider tie-up, including the involvement of overseas operations such as R-R's US subsidiary, engine maker Allison.
A memorandum of understanding has already been signed by Pattonair and R-R, which will result in a new division, Pattonair Logistics, becoming the sole service provider for a wide range of parts supplied to the engine manufacturer's UK sites.
The initial 11-year contract, estimated to be worth £20 million ($33 million) a year, is due to start next month.
Pattonair managing director Jason Crabtree says that the arrangements cover R-R's nine UK manufacturing sites, and encompass inventory management, supply chain management and quality control of parts up to about £25 in value - such as seals, fasteners and clamps. It will mean large inventory reductions for the engine manufacturer.
R-R will reimburse Pattonair for the costs of implementing the infrastructure, which is expected to take a year. After that, the company will receive a management fee based on the annual value of components supplied.
The contract is the first phase of a wider plan covering other areas of the engine builder's business. Contract award for the later phases is "18 months to two years away", says Pattonair, and would cover areas such as supplying spares to final assembly areas.
Crabtree has confirmed that the prospect of extending the agreement to its Allison engine subsidiary is "being discussed".
Source: Flight International
