Rolls-Royce (Germany)

Construction of new logistics center

Rolls-Royce Power Systems has its headquarters in Friedrichshafen on Lake Constance. Nearby Überlingen was therefore the obvious choice for a new spare parts logistics center to centrally handle worldwide supply with streamlined process flows from ordering to delivery. A stringent focus on growing client requirements and component diversity led to the decision to invest in this new site.

Project challenge

The newly established logistics center is integral to the worldwide service network, with its fast, error-free spare parts delivery.

io’s comprehensive services from a single source meant that Rolls-Royce had a team of skilled and experienced professionals at its side throughout the project.

io provided Rolls-Royce with full support from the initial idea to go-live at the new logistics center – overall concept, dimensioning, operator model, site analysis, detailed planning, IT systems, relocation organization and project management were all part of the wide range of services.

The Überlingen warehouse is one of the first logistics centers in the world to be fully run by SAP EWM.

 

Rolls-Royce (USA)

New spare parts distribution center for North America

Global synchronization of the company’s after-sales activities and changes in the sales network meant that Rolls-Royce Power Systems (formerly MTU America) needed a new spare parts distribution center for North America. The new 32,500 m2 facility was built in Brownstown, Michigan (USA) and designed in collaboration with io.

Globally standardized systems and processes for spare parts logistics

A key requirement was that spare parts had to be delivered to Rolls-Royce diesel engine users in North America and worldwide within one to three days. The company’s global spare parts logistics strategy is to use standardized systems and processes worldwide. The new order processing system was therefore designed so that each product shipment follows an identical procedure.

io’s task was to simulate a supply chain network based on the new requirements that would ultimately determine the new warehouse location. After drawing up the draft plan and a detailed design, the io team supported Rolls-Royce Power Systems in all subsequent phases. io evaluated the most cost-effective warehouse solutions during a site analysis and designed an appropriate future IT concept based on SAP EWM.

Key Facts

Client

Rolls-Royce is one of the world’s leading manufacturers of large diesel engines. It offers world-class energy solutions and complete lifecycle support under its MTU product and solution brand. Rolls-Royce is synonymous with high-quality propulsion and power generation solutions to meet the current demands of digitalization and electrification. MTU America was renamed Rolls-Royce Power Systems in 2014 and is now a wholly owned subsidiary of Rolls-Royce Holdings.

The challenge

  • Growing customer demand for rapid delivery
  • Long-term increase in the range of parts
  • Worldwide synchronization of after-sales activities

Solution

  • Supervise construction of the new logistics center for worldwide spare parts handling at their Lake Constance location, from overall concept to go-live
  • Plan new spare parts distribution center for North America to increase warehouse capacity
  • Implement SAP-EWM at Rolls-Royce sites worldwide

Planning of the new facility

The aim of the project was to increase storage capacity for spare parts and series components. This called for a complete redesign of the storage processes in the facility.

The system now processes 40,000 stock items and has the capacity to be upgraded to 80,000 parts. Under regular conditions, 360 picks per hour can be achieved. A stacker crane with 22,500 storage containers is located near the goods receiving area and transports the containers via an exceptionally quiet conveyor system to five ergonomically designed goods-to-person workstations with light-controlled picking carts. Such goods-to-person systems save employees a great deal of walking and reduce the number of conveyors needed.

The new warehouse was completed, up to and including go-live, within just nine months. Subsequently, the new SAP-EWM system was rolled out to Rolls-Royce sites worldwide (Germany, USA, Singapore, Brazil).