23 August 2010 | Angeline Albert
Rolls-Royce has signed a seven-year deal with supply chain group Pattonair to outsource the delivery of aircraft engine parts and logistical services for its North American operations.
The deal, which is worth $20 million (£12 million) in annual sales for Pattonair, starts on 1 January 2011 and will see the vendor provide parts, maintenance, repair and overhaul services.
Pattonair, an international provider of supply chain services to the aerospace and defence industry, and the brand name under which aerospace supply chain manager Umeco trades globally, already provides Rolls-Royce with logistical services in the UK and Germany.
As part of the latest deal, it is set to work with Rolls-Royce to develop part forecasts, including demand from production and aftermarket. Pattonair will provide forecasts to suppliers, place purchase orders with these vendors, receive parts and quality inspect and warehouse the components. The scope of work covers fixed and rotary wing aircraft engines, as well as power generators for land, sea and air vehicles. Pattonair is expected to deliver the parts directly to the production line. In some cases it will also put together groups of parts used in an assembly sequence and then deliver them to Rolls-Royce.
Paul Fanelli, president of Pattonair Americas, said: “In general, our supply chain services reduce our customers operating costs and working capital requirements.”
The company announced a significant expansion to its operations in support of Rolls-Royce, opening a new facility in Indiana. It has been agreed with Rolls-Royce that Pattonair’s existing major supply chain contract in the UK will be extended by two years and will now run to 31 December 2017.