Rolls Royce Supply Chain Management

1892 Words8 Pages
Introduction
To introduce, I will give a definition of what supply chain management consists of. Supply chain management is the stages involved in the flow and control of materials from the suppliers to the customer. It involves trust and commitment between the suppliers as they enter long term relationships. Strategic decision making is also important to consider for an effective SCM system, to add value and gain competitive advantage. (Sunil Chopra, 2001).
The objective of a supply chain is to maximise overall value generated. This is done by assessing what the final product delivered to the customer is worth and the extent that the supply chain goes to fulfil a customer’s request. (Sunil Chopra, 2001).
For this assignment, we are asked
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They are a leader in civil aerospace. Their market share grew due to a balanced portfolio of its products. A globally diverse supply base supports Rolls Royce. The evolution has created interdependencies so the supply chain can’t be considered commodities. They support many engines produced which has provided complex networking scenarios where suppliers have many interfaces within the company. The supply base is measured on quality, cost, delivery and rate of responsiveness. Price reductions are a requirement of the suppliers. Global purchasing has led to a reputation of achieving price reductions for savings within the…show more content…
Customer preferences also means that varieties have widened that are now being presented to customers. Customers are demanding more reliability and faster delivery services due to technological developments happening at a fast pace. However, the management of the supply chain has its difficulties due to the involvement of multiple relationships with its fellow trading partners. Difficulties can occur due to the dependency of the parties involved.
Global partners could have language barriers so therefore allowing the supply chain technology to deal with most of the supply chains operations including the procurement and communication elements, which make the supply chain operate quicker. As supply chain technology has become more accessible technology is looked upon as a way of improving the flow of information. Technology has played an important role in that with competition, technology facilitates frequent communication patterns with each other.
The supply chain technology means that all of the information is done electronically resulting in efficient transactions, easy access to information, better communication and more importantly, the productivity is increased. (Udin,
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