BAE Systems has chosen Wincanton to provide supply chain support for its Global Combat Systems Vehicles. The contract is for five-years.
And in a second win in the defence sector, Wincanton has won a £27m contract with helicopter manufacturer AgustaWestland to manage the production stores and logistics requirements of its major operations in Yeovil.
Wincanton will handle components for four of BAE’s military vehicles, all currently deployed with the British Army: the Challenger 2 main battle tank, the Bulldog FV430 armoured fighting vehicle, the Panther light armoured vehicle and the AS90 self-propelled gun platform.
From 1 June 2010, all components, from air filters to gearboxes, including new replacement parts and repaired items, will be processed, securely packaged and despatched directly to the customer from a centralised logistics support centre in the Midlands.
Wincanton’s in-house barcode and labelling production system is able to satisfy rigorous compliance and security objectives through the complete end-to-end supply chain. The Wincanton barcode system and associated documentation technology have been fully conformed to be compatible with that of BAE Systems.
Graham Gall, head of supply chain for BAE Systems said: “Wincanton’s solution is a significant milestone in taking service reliability and agility to a new level, thereby enhancing our competitive position.”
Wincanton’s chief executive, Graeme McFaull, said: “Working closely with BAE Systems, we have been able to consolidate all our operations for this contract under one roof in the Midlands. “
“With a less fragmented supply chain, no longer reliant on smaller, geographically diverse sub-contractors, we’re able to take full advantage of wider efficiencies within the supply chain. For example, we’ll be drawing on the skills of employees at Wincanton’s nearby Kingswinford manufacturing plant to create secure military compliant packaging for the components. We’ll also be using Wincanton fleet vehicles for secure deliveries, where appropriate, and we have already integrated key technology with BAE Systems.”
The contract with AgustaWestland involves managing production stores and logistics operations in and around Yeovil, and has a value of some £27 million over five years.
AgustaWestland’s production stores distribute helicopter components to clients around the globe, handling an inventory of over 40,000 parts that ranges from washers and bolts to rotor blades. Under the agreement 130 AgustaWestland employees will transfer to Wincanton.
Alberto Mariani, AgustaWestland’s head of indirect procurement, said: “Working together we will help drive down the through life cost of equipment. Furthermore, it will enable us to focus on our core business activities and help improve operational efficiency.”