An exploration of supply chain management practices in the aerospace industry and in Rolls-Royce

Abstract

This thesis is a part of the Supply Chain 2020 research project which seeks to study best practices in supply chain management in multiple industries in order to develop a deeper understanding of key principles and practices characterizing the creation of excellent supply chains through a long-term research agenda. This thesis addresses the first phase of the research by concentrating on the aerospace industry and by focusing on Rolls-Royce through a case study. The objective of the thesis is to conduct an exploratory study of the best practices in supply chain management in the aircraft engine manufacturing industry, and how these practices impact the competitive positioning of an engine manufacturer within the industry. The analysis involves a broad review of the current state and future directions of the aerospace industry by tracing the key factors shaping its evolution and by identifying the major strategic forces that would influence its future. Within this general industry context, the thesis analyzes Rolls-Royce's position in the industry as a leading aircraft engine manufacturer and presents a focused study of Rolls-Royce's supply chain management practices.

(cont.) In particular, the thesis involves a deeper exploration of the aircraft engine manufacturing business segment of Rolls-Royce and strives to understand the company's supply chain management practices, by examining the role of major factors that have proven crucial to effective supply chain management within the company. The thesis also presents more specific case study examples that track the implementation and results of major supply chain management initiatives. Finally, the supply chain design and management practices are analyzed from the perspective of their role in the company's business strategy. This is accomplished by employing a number of business strategy frameworks to understand the key factors that determine the competitiveness of a tier one supplier in the aerospace industry, such as Rolls- Royce, and by examining how those factors have affected Rolls-Royce's supply chain management strategies and practices.