E-Logistics and International supply Chain Management - Essay Example

Furthermore, industries are driving towards landscape that is defined as flat one by Thomas Friedman. Thomas Friedman declared that era of multinational corporations or the era of globalization 1.0 especially in high tech industries is on the verge of passing away. Similarly, there is a major shift in the aero-strategy and the systems with which the aircrafts are conceived, planned, produced, and supported have changed considerably. The new era defined as globalization 2.0 is the era of horizontal specialization with tight integrations of specialized original equipment manufacturer (OEM) (AIAC, 2009).

With this the new era of globalization in the aerospace industry, 320-hectare Seletar Aerospace Park of Singapore has managed to attract the considerable investment from the aerospace manufacturers across the world as reported in the Financial times recently published article (Grant, 2014). Among leading investors include leading aerospace industry giant Rolls Royce and the supply chain perspective for Rolls Royce in Singapore’s aerospace hub forms the central idea of this paper. This paper is based on the assessment of factors that drove Rolls Royce towards Singapore and its potential challenges in place; while concluding with, action to overcome challenges.

The aerospace industry, including the defense and commercial industry, accounted for $695 billion in the year 2012 with four percent increases from 2011. The annual operating profits $59.8 billion and 8.6% annual profit margin (PwC, 2013a). According to another project in reference from past trend, the future is projected as follows: According to Capgemini (2011) the demand drivers of the industry is the reviving economies while, at the same time, growth in demand from the middle-east, China and India have been offsetting the slowed demand from developed part of the world.

The major factor driving demand includes the rising low cost carrier pattern trends specifically in the developing countries.