thyssenkrupp Aerospace has signed a 15-year contract with Rolls-Royce to manage the storage and logistics of all finished parts for its engine manufacturing and assembly operations in Indianapolis, Ind. The third-party logistics (3PL) contract includes inventory management, as well as kitting, inspection, and transportation services. thyssenkrupp Aerospace already provides vendor-managed inventory services for a portion of Rolls-Royce’s supply chain. This expanded contract will be in full operation in 2022 when a new 330,000 square-foot facility is completed in the Indianapolis area.
The new contract consolidates the warehousing and logistics services of what was previously multiple 3PL providers working with Rolls-Royce. In addition to becoming the sole service provider of inventory management, thyssenkrupp Aerospace will also facilitate a next-generation warehouse management system that seamlessly integrates with Rolls-Royce’s business systems, build a state-of-the-art warehouse facility to optimize storage, and provide an integrated transportation solution between manufacturing sites.
“We are thrilled to continue and grow our partnership with Rolls-Royce,” said Gary Lowe, President and CEO of thyssenkrupp Aerospace North America. “With our expertise in providing “Materials as a Service”, we are committed to providing exceptional solutions and reducing the complexity of Rolls-Royce’s supply chain.”
As part of its “Materials as a Service” strategy, thyssenkrupp Materials Services, the holding company of thyssenkrupp Aerospace, is systematically expanding its supply chain services alongside materials distribution. The aim is to serve customers’ complex and individual requirements even better.
“Rolls-Royce is excited about continuing our strong partnership with thyssenkrupp and equally excited about what the future of this logistics campus holds,” said Derek Kramer, Head of Global Defense Logistics at Rolls-Royce. “With modern working practices, a state-of-the-art facility, and cutting-edge IT infrastructure, we will be at forefront of logistics in our industry and will be well positioned for the next 15 years of operational capability and expected future growth.”
Rolls-Royce is one of the world’s leading manufacturers of power and propulsion solutions. With more than 30 configurations of small and large turbine engines, Rolls-Royce’s extensive design, manufacturing, assembly, and overhaul capabilities support many key customers including the U.S. Department of Defense, Boeing, Lockheed Martin, Northrop Grumman, Bell, Robinson Helicopter, Gulfstream, and major commercial airline providers such as American Airlines, United, and Delta.
As part of the global thyssenkrupp network in 22 countries, thyssenkrupp Aerospace offers an unmatched logistics infrastructure to support customers around the world. Services range from raw material management to finished parts kitting. In Indianapolis, thyssenkrupp Aerospace has partnered with Rolls-Royce for more than 16 years, providing vendor-managed inventory services for a portion of its engine manufacturing assets.
About thyssenkrupp Materials Services:
With around 480 locations – 271 of them warehousing locations – in over 40 countries, thyssenkrupp Materials Services is the biggest mill-independent materials distributor & service provider in the western world. The wide-ranging capabilities offered by the materials experts enable customers to concentrate more on their individual core business and span two strategic areas: global materials distribution as a one-stop-shop – from steel, tubes and pipes, nonferrous metals and specialty materials to plastics and raw materials – and tailored services in the areas of materials management and supply chain management. An extensive omni-channel architecture offers 250,000 customers worldwide round-the-clock access to more than 150,000 products and services. A high-performance logistics system ensures that all deliveries are integrated smoothly into customer production processes on a just-in-time or just-in-sequence basis.