Rolls-Royce contract is no luxury

Premier Farnell has been awarded a three year contract (subject to annual review) with Rolls-Royce, with total anticipated sales of over GBP 30 million.

Premier Farnell has been awarded a three year contract (subject to annual review) with Rolls-Royce, with total anticipated sales of over GBP 30 million.

The contract is to supply a broad range of industrial consumables such as hand tools, safety products, abrasives and electronics to eight separate Rolls Royce sites throughout the UK.

Premier Farnell subsidiaries, Farnell and Buck and Hickman, are involved in the contract, anticipated to generate annual sales in the order of GBP 10 million.

Commenting on this contract win, John Hirst, Group Chief Executive, Premier Farnell, said: "This proves once again how well positioned Premier Farnell has become to meet the demands of major corporations.

It comes hard on the heels of the Vauxhall Motors contract announced in October.

On an annualised basis, this is the largest contract we have ever secured".

For business critical MRO items, Premier Farnell will supply Rolls-Royce with product at point-of-use, via its vendor managed inventory (VMI) stocking solution.

This uses electronic inventory control software to automatically re-order the stock required, with next day replenishment of stocking locations.

This will be backed up by a tailored online catalogue through Exostar, the aerospace and defence trading exchange, for on-demand ordering of standard consumable products.

This consolidation of consumable requirements within a single contract is consistent with Rolls-Royce Procurement's commodity management strategy for MRO requirements, and is anticipated to generate benefits from improved service levels, reduced total cost of acquisition and reduced transaction levels.

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