At the start of April 2008, we entered the implementation phase of the programme by engaging with six suppliers with whom we will carry out the next level of real live testing of our organisations, processes and interfaces. As with the previous simulation and testing activities, this is proving a valuable mechanism for identifying issues and making process refinements.

Once the live pilot is complete, and we are satisfied that all our systems and processes work effectively, we will commence the full roll out of SCS across the whole of the supply base, target completion is by end of 2008.

How will these changes impact suppliers?
Its important to remember, that under Supply Chain Simplification, you as the supplier continue to produce the same components for Rolls-Royce, and deliver them to the same customer location as you do today.

The most significant change you will see is that the Supply Chain Management Teams that you currently deal with globally will transition to a single Supply Chain Management Team which is located within the same region, and on the same time zone as you operate within today.

Future State

• Reduced (ideally single) interface between Rolls-Royce globally and each supplier
• Consistent approach globally towards our supply chain
• Clearer priorities onto our supply chain
• Where possible common systems, documentation and expectations from each Rolls-Royce customer
• Common purchase organisation structures within Rolls-Royce