Belcan: Rolls-Royce Procurement Supplier of the Year
Rolls-Royce recognised Belcan’s contribution to cost reduction, quality and delivery excellence for the company throughout 2019.
Who is Belcan?
Belcan is a global supplier of engineering, supply chain, technical recruiting and IT services to customers in the aerospace, defence, automotive, industrial and government industries. Belcan seeks for better outcomes for customers, from jet engines, airframe and avionics to heavy vehicles, automobiles and cybersecurity. Belcan's services include engineering, technical and consulting.
Upon receiving the award, Keith Matthews, President of Belcan International commented: “Belcan prides itself in its ability to deliver excellence in quality, execution, and on time delivery, which makes this recognition from a premier company such as Rolls-Royce so gratifying. While we appreciate this award, Belcan is always striving for improvement, and we continue to invest in people, environment, skills, and retention to ensure we remain ahead of the competition.”
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Dean Fell, Rolls-Royce Head of Category Management, commented on the significant trust and value of Belcan’s partnership with Rolls-Royce, as well as the benefits of customer service and cost delivered by Belcan.
Rolls-Royce had a successful year itself during 2019. Announced as the overall winners of the CIPS Supply Management Awards 2019, direct civil aerospace procurement savings of £153.2mn (US$195.8mn) were achieved. “Procurement is very much a people and knowledge-based organisation,” said Gordon Tytler, Director of Procurement at Rolls-Royce. “The tools allow us to operate more efficiently, effectively and to enable us to link with our suppliers. But, the key differentiator for successful procurement is its people.”
For more information on all topics for Procurement, Supply Chain & Logistics - please take a look at the latest edition of Supply Chain Digital magazine.
Image: Belcan Press.
EU and US agree end to Airbus-Boeing supply chain tariffs
The EU and US have agreed to resolve a 17-year dispute over aircraft subsidies, suspending tariffs on billions of dollars' worth of goods that have plagued procurement leaders on both sides of the Atlantic.
Under an agreement reached by European Commission Executive Vice-President Valdis Dombrovskis and US Trade Representative Katherine Tai on Tuesday, the tariffs will be halted for a period of at least five years.
It will bring an end to punitive and disruptive levies on supply chains that have little to do with the argument, which became embroiled in the trade battle. Businesses on both sides of the dispute have been hit with more than $3.3bn in duties since they were first imposed by the US in October 2019, according the EC.
The US imposed charges on goods upto $7.5bn in response to a World Trade Organisation ruling that judged the EU’s support of Airbus, its biggest aircraft manufacturer, unlawful. A year later in November 2020, the EU hit back. The WTO found the US had violated trade rules in its favourable treatment of Boeing, and was hit with EU duties worth $4bn.
In all the tariffs affected $11.5bn worth of goods, including French cheese, Scotch whisky, aircraft and machinery in Europe, and sugarcane products, handbags and tobacco in America. Procurement leaders on both sides of the fence were forced to wrestle with tariffs of 15% on aircraft and components, and 25% on non-aircraft related products.
Boeing-Airbus dispute by the numbers
- The dispute began in 2004
- Tariffs suspended for 5 years
- $11.5bn worth of goods affected by tariffs
- $3.3bn in duties paid by businesses to date
- 15% levy on aircraft and 25% on non-aircraft goods suspended
Both sides welcome end to tariffs
European Commission President Ursula von der Leyen branded the truce a “major step” in ending what is the longest running dispute in WTO history. It began in 2004.
“I am happy to see that after intensive work between the European Commission and the US administration, our transatlantic partnership is on its way to reaching cruising speed. This shows the new spirit of cooperation between the EU and the US and that we can solve the other issues to our mutual benefit,” she added.
Both aircraft manufacturers have welcomed the news. Airbus said in a statement that it will hopefully bring to an end the “lose-lose tariffs” that are affecting industries already facing “many challenges”. Boeing added that it will “fully support the U.S. Government’s efforts to ensure that the principles in this understanding are respected”.
The US aerospace firm added: "The understanding reached today commits the EU to addressing launch aid, and leaves in place the necessary rules to ensure that the EU and United States live up to that commitment, without requiring further WTO action."
This week’s decision expands upon a short-term tariff truce announced in March this year. The EC says it will work closely with the US to try and further resolve the dispute, establishing a Working Group on Large Civil Aircraft led by each side’s trade minister.
Airbus last month signalled to suppliers that post-pandemic recovery was on the horizon, telling them to scale up to meet a return to pre-COVID manufacturing levels. “The aviation sector is beginning to recover from the COVID-19 crisis,” said Airbus chief executive Guillaume Faury, adding that suppliers should prepare for a period of intensive production “when market conditions call for it.”