From the Rolls-Royce experimental archive: a quarter of a million communications from Rolls-Royce, 1906 to 1960's. Documents from the Sir Henry Royce Memorial Foundation (SHRMF).
Breakup of a ball bearing supplier monopoly and the subsequent sourcing and pricing strategy.
Identifier | ExFiles\Box 20\7\ Scan049 | |
Date | 26th August 1924 | |
X547 B.Y. from ROY.{Sir Henry Royce} c. to Hs.{Lord Ernest Hives - Chair} ROY{Sir Henry Royce}7/MG26.8.24. Ball Bearings The English Ball Bearing Ring is broken at last, the Skefko Company, of Luton, I understand, being the first to break away. Hoffmann's prices to us forthwith have been reduced some 5%, which represents about £1000 a year saving - a concession, presumably, they would have allowed some months ago had the Ring not been in existence, as Wages have been stabilised for some time, and Steel prices certainly show no downward tendency. Our Account with the Hoffmann Company for the 12 months ending June 30th.1924 was £19,000. Will you kindly advise if tests, in line with Conference Minutes June 20th.1923, of sample Skefko and Ransome & Marles Bearings are now complete, or if anything further can be done to expedite same. Apart from the competition engendered now the Ring is broken by alternative sources of supply, we have the further advantage of additional security should one Maker fail, due to Fire or other causes. Could it be agreed for the present that certain sizes can be drawn from Hoffmann, Skefko, Ransome & Marles or Rudge-Whitworth (I have included the latter in view of our experience with same on Aero Engine work) as this would assist materially our negotiations. If so, will B.Y. kindly let us have a list of the Piece Numbers which can be so drawn. ROY.{Sir Henry Royce} | ||