Rolls-Royce Supply Chain Issues Strike Again

Rolls-Royce is struggling with persistent supply chain issues that are impacting its engine production and maintenance schedules, forcing British Airways (BA) to cancel flights on one of its most popular transatlantic routes. Starting December 12th, British Airways will suspend all flights between London Gatwick and New York’s JFK Airport until March 25, 2025, in response to the engine shortages. The airline cites logistical bottlenecks within Rolls-Royce’s supply chain as a key factor driving this decision.

The supply chain issues stem from a combination of raw material shortages, logistics challenges, and delays in the global delivery of engine components. Rolls-Royce, which supplies engines for BA’s long-haul aircraft, has been unable to meet rising demand due to constraints in sourcing critical materials like titanium and specialized electronic components. The company’s supply chain delays are affecting its ability to deliver new engines and complete necessary maintenance on existing ones, forcing BA to make operational adjustments.

British Airways expressed regret over the cancellation of flights, acknowledging the disruption this will cause for passengers, particularly during the busy holiday season. In a statement, the airline said, “We understand the inconvenience this decision will bring to our customers, but we are committed to minimizing any potential disruptions in our wider network as Rolls-Royce works to resolve the engine supply constraints.”

The logistical issues at Rolls-Royce extend beyond production to affect global transportation networks. Transportation of engine parts from manufacturing centers has been impacted by delays at major ports, compounded by a global shortage of freight space and skilled logistics personnel. This is causing a ripple effect that has slowed the assembly and distribution of engines for critical routes. The logistical logjam has hindered Rolls-Royce’s ability to meet the maintenance schedules BA requires to operate its transatlantic fleet, particularly affecting the Boeing 787 Dreamliners, which rely on Rolls-Royce’s fuel-efficient engines.

A Rolls-Royce spokesperson told us: “We take the industry-wide issue that the aerospace supply chain is currently dealing with extremely seriously. We’ve introduced a number of initiatives to reduce the impact on our customers. We’ve already introduced measures that allow us to respond more quickly to issues, such as integrating our Procurement and Supplier Management teams, sharing our own raw material stocks to tackle shortages, and hiring people to work in supplier organisations; one of our most impacted suppliers currently has almost 50 Rolls-Royce supply chain staff dedicated to driving their recovery.”

“These changes are already having a positive impact. So far this year, we’ve increased Trent 1000 supply chain output by a third, making more components available and minimising the time engines spend in our Maintenance, Repair and Overhaul (MRO) centres. We’re confident that these bold changes coupled with our long-term investment plans will provide continuous improvement for our customers. In addition, our first stage Durability Enhancement package for the Trent 1000 is in the final stages of certification and will more than double engine time on wing, while a second package of enhancements will deliver a further improvement of up to 30%.”

“Whilst this is not an MRO capacity issue, we know that demand will increase in the future. So, we have allocated additional investment this year to ensure we can meet that demand, creating some short-term surge capacity and allowing us to approximately double our MRO capacity by 2030. This will ensure scheduled maintenance, such as that of the British Airways Trent 1000 fleet, can be conducted as efficiently as possible.”

To mitigate further disruptions, British Airways is rerouting some aircraft and adjusting maintenance schedules for other key transatlantic routes. However, the Gatwick-JFK route was identified as the most feasible to suspend temporarily, with BA hoping to reinstate the route by late March once supply chain stability is restored.

Impact on Cargo Operations

The supply chain disruptions at Rolls-Royce are not only affecting passenger flights but are also having a notable impact on cargo operations. With fewer engines available for maintenance and replacement, cargo planes that use Rolls-Royce engines are also experiencing delays, exacerbating issues in global logistics.

Cargo flights, particularly those that transport high-value or time-sensitive goods, are now facing potential delays as maintenance timelines for Rolls-Royce-powered planes are stretched. This challenge has introduced additional uncertainty in an already pressured global logistics system, which has seen demand spikes due to increased e-commerce activity and seasonal holiday shipments. The limitations have forced cargo operators to reconfigure routing and adjust freight schedules to minimize disruptions to supply chains reliant on timely delivery.

Moreover, freight forwarding companies that depend on reliable transatlantic cargo services are now dealing with increased costs due to limited cargo space, as fewer available aircraft intensify competition for slots. For businesses relying on air freight to move high-demand items—such as electronics, pharmaceuticals, and perishable goods—these delays can lead to supply shortages, price increases, and missed delivery deadlines.

Broader Implications for the Industry

Industry experts warn that the Rolls-Royce delays reflect broader issues in the aerospace sector, as companies grapple with post-pandemic demand surges and logistics backlogs. With many components needing precision engineering and long-distance shipping, the aerospace industry is especially vulnerable to supply chain breakdowns. Analyst Ian Campbell from Aviation Logistics Group explains, “The challenges Rolls-Royce is facing are significant, as aerospace supply chains are finely tuned. Even minor disruptions can escalate into major logistical challenges.”

This incident is prompting British Airways and other airlines to explore diversifying engine suppliers and maintenance partners to reduce dependency on single sources. It also raises questions about supply chain resilience in the aerospace industry, with many advocating for increased investment in logistics technologies and multi-source supply chains to buffer against future disruptions.

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Sagard NewGen acquires leading provider of SaaS solutions

Sagard NewGen announces the acquisition of FuturMaster, a Software-as-a-Service (SaaS) provider of Supply Chain Planning and Revenue Growth Management solutions, from its founder and Cathay Capital. Sagard NewGen becomes the Group’s majority shareholder alongside the management team and Cathay Capital, who reinvest in the new transaction.

This acquisition aligns with recent trends in the SaaS and supply chain sectors, where private equity and investment firms target companies driving digital transformation. For instance, in December 2022, Thoma Bravo acquired Coupa, a leader in business spend management, to enhance its portfolio of cloud-based solutions supporting operational efficiencies for large enterprises. Similarly, in January 2022, Blackstone invested in Cloudreach, a cloud services provider, to strengthen its capabilities in digital and cloud-based transformation. These deals, like the acquisition of FuturMaster, underscore a strategic focus on leveraging technology to optimize complex, global operations amidst shifting market demands.

FuturMaster, with its Bloom platform, offers a comprehensive suite of SaaS-based solutions for the end-to-end supply chain planning and revenue optimisation of large enterprises and mid-sized companies worldwide. Thanks to cutting-edge technologies such as artificial intelligence, digital twin modelling and operational research, FuturMaster enables its customers to better plan for demand, and adapt their operational response by optimising production, distribution and supply plans. This platform is used daily by many leading companies in all sectors, including Heineken, L’Oréal, TotalEnergies and SNCF, in over 90 countries. The group is profitable, with growth of c.30% per year, and generates over €30 million in revenue, over a third of which is generated outside France. It employs nearly 200 people in France, the UK, Singapore and China.

Yacine Zeroual, CEO of FuturMaster, said: ‘We are delighted to begin this new chapter with Sagard NewGen, which shares our ambition to become a global leader in Supply Chain Planning and Revenue Growth Management solutions. With the support of Sagard NewGen and Cathay Capital, and backed by a talented and committed team, we will accelerate our international expansion while continuing to offer our customers innovative solutions to transform their complexity into sustainable competitive advantage in a constantly changing world.’

Bérangère Barbe and Guillaume Lefebvre, Partners at Sagard NewGen, added: ‘We are delighted to support Yacine and his team in the next stages of FuturMaster’s development in Europe and beyond. This project, alongside the management team, is based above all on the continuity of the company’s strategy of product innovation and internationalisation. This transaction, which opens up the capital more widely to the company’s management team, is perfectly in line with Sagard NewGen’s Growth Buyout strategy.’

Jérémie Falzone, Partner at Cathay Capital, stated: ‘Since acquiring a stake in FuturMaster in 2020, we have been proud to support the company, which has successfully developed innovative SaaS-based supply chain management solutions and expanded its business with major companies that are leaders in their sectors. We are delighted to continue our partnership with Sagard NewGen and the company’s management to accelerate FuturMaster’s international growth.’

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Plans for UK Mega-Freight Hub Proceed

The latest addition to England’s burgeoning Logistics Golden Triangle has cleared a critical hurdle, as objections to a substantial logistics park with dedicated rail freight facilities have been formally dismissed. Initial construction is now underway, bringing forward a project that supporters argue is crucial for strengthening supply chain resilience in the region, but which has faced considerable pushback from local communities concerned about its impact.

The West Midlands, often referred to as the heart of the UK’s logistics sector, is strategically positioned to serve as a transit and distribution hub. This new development, located within what’s known as the Golden Triangle — an area linking the M1, M6, and M42 motorways — will provide quick access to approximately 90% of the UK population within a four-hour drive. This makes the region exceptionally attractive for logistics firms, particularly as e-commerce demand continues to accelerate. The terminal, part of a larger trend toward multimodal freight solutions, will have both expansive warehousing and rail access, facilitating a more efficient, carbon-conscious supply chain.

objections to a substantial logistics park dismissed

Local Objections and Environmental Concerns

Despite its economic promise, the project has stirred debate among residents and environmental advocates. Detractors voiced concerns over the environmental and social impact of the terminal, particularly regarding air quality, traffic congestion, noise pollution, and the encroachment on green spaces. With the dismissal of formal objections, some community members feel that their voices have been overlooked.

“Many of us worry about the environmental consequences,” says Amelia Grant, a local resident involved in a campaign opposing the park. “Our area is already under pressure from development, and adding such a large logistics terminal brings issues of traffic, pollution, and loss of biodiversity.” Environmental groups have echoed these sentiments, emphasizing the potential disruption to local ecosystems and calling for a rigorous impact assessment to protect the landscape.

In response, developers have assured the public that they will implement measures to mitigate adverse effects. Plans include extensive landscaping, noise-reducing barriers, and dedicated transport routes designed to minimize congestion on local roads. “Our aim is to ensure that this facility not only benefits the logistics sector but respects the environment and communities around it,” a project spokesperson stated, emphasizing a commitment to sustainable practices.

The Golden Triangle’s Role in the UK Economy

For years, the Golden Triangle has been a focal point for logistics infrastructure in the UK, a sector that has grown exponentially with the rise of online retail. Major retailers and distribution companies are already established in the area, drawn by its accessibility to key markets. This new terminal builds on that legacy, positioned as an asset for both national distribution networks and the post-Brexit trade environment. With rail freight connectivity at the core of the project, developers argue that the park will play a key role in reducing reliance on road transport, cutting emissions, and aligning with the UK’s net-zero goals.

“Rail freight facilities are essential if we are serious about reducing transport emissions,” says Dr. Philip Davies, a logistics expert at the University of Birmingham. “By linking road, rail, and warehousing, we can increase efficiency and reduce the carbon footprint of goods transport. The Golden Triangle is already well-suited to this sort of intermodal facility.”

The new terminal will not only bolster the efficiency of regional supply chains but is also expected to generate significant job opportunities in the West Midlands. Project estimates suggest that thousands of jobs, spanning construction, operations, and support roles, could be created. This boost is anticipated to strengthen the local economy, a factor that has swayed some community members to support the project despite reservations.

The Way Forward: Construction and Community Engagement

With initial construction now underway, the coming months will be pivotal in shaping the long-term trajectory of the project. Developers have committed to ongoing dialogue with residents and local authorities to address emerging concerns and ensure transparency as work progresses.

“We are prepared to hold the developers accountable,” says Councillor James Mathers, representing a nearby community. “This project could bring economic benefits, but we must ensure these are not achieved at the expense of our environment and residents’ well-being.”

While the objections may have been dismissed, the community’s concerns underscore the need for a balanced approach to large-scale developments. For England’s Logistics Golden Triangle, the terminal is a strategic and logistical asset with far-reaching potential. Yet, as this project unfolds, the dialogue between economic imperatives and community priorities will likely shape not just the logistics landscape, but the West Midlands itself.

The completion of the logistics park will undoubtedly be watched closely by both industry insiders and environmental advocates, setting a potential precedent for future projects within the UK’s critical logistics sector.

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