Cummins Emission Solutions Uses Order-Management System That Supports 33% Sales Growth with Ease
 
Oracle 1-800-633-0738
Find an Oracle Specialized Partner
Oracle Customer Programs
 
 

Cummins Emission Solutions Uses Order-Management System That Supports 33% Sales Growth with Ease

Cummins Emission Solutions, a subsidiary of Cummins Inc., is a global leader in designing, manufacturing, and integrating exhaust-after-treatment technology and solutions for the commercial on- and off-highway, medium-duty, heavy-duty, and high-horsepower-engine markets.

Cummins Emission Solutions was on track to grow rapidly and knew that enhancing operational efficiency across its various facilities would be an important part of realizing its revenue goals. After only 10 years of being in the business, Cummins Emission Solutions has grown from 11 employees in 2002 to nearly 1,700 by the end of 2012. In addition, the business has reached more than US$1.2 billion in revenue for its annual sales of products and services worldwide.

The company had used Oracle applications to support planning and manufacturing, and a heavily customized legacy system, it called SOMS, which was used to capture and fulfill customer demand for the company’s emissions technology solutions. Cummins Emission Solutions wanted to replace SOMS with an integrated enterprise resource planning (ERP) solution to enable it to manage higher transaction volumes and enhance overall operational efficiency.

Cummins Emission Solutions augmented its existing Oracle E-Business Suite footprint to include Oracle Order Management, Oracle e-Commerce Gateway, Oracle Release Management, Oracle Advanced Pricing, Oracle Shipping Execution, and Oracle Receivables—extending the solution for enterprisewide integration and visibility across business functions. With the applications in place, Cummins Emission Solutions improved its ability to manage higher volumes of sales and shipping transactions. For example, on the first day it went live on the upgrade, the warehouse shipped 50% higher than average volume, achieving one of the company’s top 10 days for shipping volume in its history.

 
 

 
 

Challenges

  • Ensure accurate information on inventory availability to accelerate order fulfillment
  • Reduce effort required to reconcile inventory discrepancies between the company’s legacy order management system and its Oracle E-Business Suite manufacturing applications
  • Support the company’s rapid-growth goals by replacing disparate and proprietary business applications with a single, integrated ERP system that spans its various business processes, as well as emissions technology manufacturing facilities and business offices 
  • Reduce costs through the ability to create customer-specific barcode labeling requirements without complicated coding

Solutions

  • Expanded the Oracle E-Business Suite footprint and created an integrated ERP environment that can support the company’s aggressive growth goals, numerous facilities, and diverse business processes, including emissions-technology-product development and order-management processes
  • Used Oracle Order Management to cut order entry and maintenance time by 10% and ensure real-time margin analysis to support quick business decisions, such as pricing strategy, price agreements, minimum order quantities, and lot-based pricing
  • Implemented Oracle Advanced Pricing and cut the time spent developing and maintaining pricing and resolving pricing discrepancies by 22%
  • Minimized return merchandise authorization (RMA) entry time as the solution applies data from the original order, ultimately reducing efforts for repricing and by automating credit-note generation
  • Used Oracle Shipping Execution to cut shipping execution time by 33% and shipped, on the first day of go-live, 50% higher-than-average volume, achieving one of the company’s top 10 days for shipping volume in its history
  • Increased components-segment sales by 33% due to increased demand across all lines of business, led by the emission solutions and turbo technologies businesses
  • Used Oracle Release Management to eliminate manual processes related to reviewing customer electronic data interchange (EDI) planning and shipping schedules and generating firm forecast demand, saving 30% of the time previously spent on order management
  • Implemented customer-specific barcode labeling requirements with one common code for all labels—unlike separate codes for each label in the legacy system—ultimately shortening solution development by 77%
  • Gained an intuitive user interface for implementing customer-specific barcode labeling requirements without custom coding, which accelerates implementing new-customer labeling requirements for shipments of the company’s emission-solution products.
  • Reworked the sequence of printing labels to match the order in which labels are pasted on pallets, saving all of the time (100%) previously spent sorting and arranging labels
  • Executed one of the largest and most complex EDI implementations, by transaction volume and number of trading partners, by using corporate EDI maps and Oracle product features that are standard, reusable, and easier to maintain

Why Oracle

Previously, Cummins Emission Solutions was using Oracle E-Business Suite applications for its manufacturing, planning, and finance operations. To support its growth goals, the company looked to expand its footprint, to enable enterprisewide integration and visibility across business functions.

Cummins Emission Solutions chose Oracle because of its seamless module integration, its support for business growth with technology for higher transaction volumes, its large product and solution portfolio that can reduce total cost of ownership (TCO), and its continued focus on product enhancement. In addition, Cummins Emission Solutions appreciated the robust, standard out-of-the-box functionality available in Oracle e-Commerce Gateway and Oracle Release Management, as well as the ease with which Oracle products enabled it to build custom solutions. Furthermore, some of Cummins’ other businesses were already using Oracle Order Management, so the group had a large, internal-knowledge base and comfort level with the product.

Partner

To implement an end-to-end order management system, Cummins Emission Solutions needed an implementation partner with strong knowledge of and expertise in Oracle E-Business Suite implementation and industry best practices. Infosys had previous experience implementing Oracle products for other Cummins business units, providing Cummins Emission Solutions with the confidence to choose Infosys to implement Oracle E-Business Suite so it met its business requirements.

Infosys consultants worked with Cummins Emission Solutions to analyze, design, develop, test, and implement a scalable solution by capitalizing on every possible standard, out-of-the-box feature to reduce TCO. The commitment and expertise of Cummins’ IT team, business users, and Infosys consultants ensured a highly successful order-management system implementation. The company is extending the same solution to other Cummins businesses worldwide.