TNT Logistics renews contract with Rolls-Royce plc
12 January 2004 - 10:51 CET
Rolls-Royce plc has awarded TNT Logistics a five-year contract to manage and control the inbound material flow of aerospace parts from 110 suppliers, based predominantly in the UK, mainland Europe and the USA.The two companies have worked together for over three years, and have recently jointly won a prestigious industry award, the third time this year they have been recognised at an award ceremony. They were presented with the Institute of Logistics and Transport's "Logistics in Manufacturing Award" for their leading-edge E-Manifest supply chain technology.
The expert panel judging the 2003 IOLT awards called it "a unique solution to an intractable manufacturing problem" - a solution which has led to a significant reduction in transport costs.
The judges said: "Rolls-Royce has been increasingly sourcing supplies from all over the world, creating a global supply base, which clearly needed a global supply chain control process. Working with TNT Logistics UK, they have created a unique solution to an intractable manufacturing problem."
The two companies have also jointly won the Motor Transport Technology Award and the International Freighting Weekly Information Technology Award.
The IT solution includes the introduction of in-cab technology and the scanning of bar-coded items through all stages of the cross-dock operation. An added benefit of the logistics solution is a saving of 2.7 million road miles a year in the UK alone, reducing congestion and pollution.
The IT solution was implemented as the third step in the supply chain solution plan which the companies developed together. First, TNT Logistics took over the physical inbound/outbound network through the implementation of:
- a Collection Service covering more than 120 UK suppliers
- an inter-site network including the eight UK and two German Rolls-Royce sites
- an outbound engine delivery process
Secondly, the two teams established a full track and trace system through the use of 'in-cab' technology and a professional transport management system.
Only then could the third step be implemented - fully dynamic, integrated supply chain management, integrating the Collection Service suppliers and the transport management system with the core ERP system - E-Manifest.
TNT Logistics has one of the most advanced global IT platforms in the industry and exploits information technology to achieve integration and visibility throughout the supply chain, which supports the process of cutting costs and reducing lead time or time to market.
Neil Crossthwaite, Managing Director, TNT Logistics UK says: "We are absolutely delighted to have been awarded a five year contract with Rolls-Royce and we look forward to continuing our excellent partnership. The three awards we have won together show how well we all work together to improve the Rolls-Royce supply chain."
