Rolls Royce and Associates manufactures nuclear cores for the Navy's submarine fleet.
Working with a partner organisation, ADR conducted a joint baseline and benchmark review of Rolls Royce’s purchasing operations and processes.
To establish Rolls Royce’s current purchasing capabilities and identify areas of potential cost saving and performance improvement opportunities.
Using ADR's base lining methodology, PRISM®, and the partner organisation's benchmarking database, ADR jointly interviewed the key influencers of sourcing, the internal customers, the major supplier and the staff directly responsible for purchasing operations.
In addition, ADR established the links between the senior management's goals and strategic direction and the objectives, thinking, behaviour and practices evident within the purchasing process.
The baseline/benchmark review identified that while there were considerable opportunities for improvement there were equally some significant constraints, especially with regard to changing suppliers and/or materials used.
Significantly, Rolls Royce was coming under pressure from its customer to lower its pricing and to pass these cost reductions on whilst improving value. The customer, however, was unprepared to concede in any respects on sourcing protocols under its control, an area that ADR identified as an opportunity for improvement.
ADR's baseline/benchmark review included a series of recommendations which were used as the basis for dialogue with the customer with the objective of locating and jointly agreeing opportunities to be pursued. More importantly, it enabled joint investment decisions to be taken to the benefit of both parties.
Identify areas of savings and performance improvements
Opportunities for improvement were identified