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As a worldwide provider of electrical generators and power generation systems, components and services in standby power, distributed power generation, as well as auxiliary power in mobile applications, Cummins Power Generation is focused on ensuring operational efficiency within each area of its business to offset shrinking margins and improve profitability and productivity.
Serving customers in approximately 190 countries and territories through a network of more than 500 company-owned and independent distributors and approximately 5,200 dealers, Cummins Power Generation aimed for significant profitable growth by leveraging its leadership position, global capabilities, and expansion into adjacent markets. It was imperative, however, that the company continue to enhance operational performance at its existing facilities across various geographies.
In light of these challenges, Cummins Power Generation deployed Oracle Warehouse Management, as part of its Oracle E-Business Suite Release 12 implementation to increase the velocity of its internal supply chain, manage growth, and consolidate local manufacturing systems across regions including China, Singapore, the United Kingdom, and the United States.
Logistics and Manufacturing—which consists of more than 600 end users—represents a significant part of Cummins Power Generation’s workforce. As such, the company knew that if it could reduce costs, improve productivity, and streamline processes in this business area, it would realize a quick return on investment (ROI). Oracle Warehouse Management, therefore, became a crucial component of the company’s enterprise application initiative.
Cummins Power Generation needed a scalable warehouse management system (WMS) to maximize its labor utilization, space, and equipment investments. After evaluating another vendor’s solution, Cummins Power Generation decided to deploy Oracle Warehouse Management with the help of Infosys because the product integrated seamlessly with Cummins’ inventory, manufacturing, and shipping systems (Oracle E-Business Suite Release 12)—presenting a single source of truth across the entire supply chain.
Cummins Power Generation uses Oracle Warehouse Management to help guide stockers through an optimum travel path and eliminate multiple trips through the warehouse. As a result, Cummins has reduced its receive-to-stock cycle significantly.
In addition, the company has started to process transactions at point of delivery as well as transactions at point of source. By doing so, Cummins was able to improve the tracking of material and inventory. Previously, Cummins’ assembly lines had diverse replenishment methods, making these processes very person-dependent and inconsistent across the enterprise. With Oracle E-Business Suite Release 12 and Oracle Warehouse Management, Cummins Power Generation was able to leverage industry best practices and reduce the number of unique replenishment processes from thirteen to six, resulting in faster order execution.
In addition, the company found it challenging to efficiently trace small packages in large containers or pallets. With the Oracle solution, Cummins streamlined its shipping process and can now effectively and quickly track every small box and holding container.
Cummins Power Generation outsourced its transportation planning and management to a third-party logistics provider (3PL) company. Prior to the Oracle E-Business Suite Release 12 implementation, integration with 3PL was not completely automated. Aligning itself to Cummins Power Generation’s vision of implementing automated paperless processes, Infosys helped implement Oracle Warehouse Management to capture key information, such as dimensions and weight information of gensets, radiators, and accessories, at the appropriate transactional points.
By automating data capture with Oracle Warehouse Management, Cummins has seamlessly interfaced the information required for 3PL, such as item, quantity, dimensions, ship date, and address. This complete and accurate data enables 3PL to effectively execute load planning. Importantly, Cummins has integrated 3PL’s consolidated and optimized shipment plans back to Oracle E-Business Suite Release 12 so it can efficiently create deliveries and trips per the shipment plan.
The solution―with its integration to 3PL helped in reducing its carbon footprint by utilizing full truck loads more often than previously utilized.
When it began its Oracle E-Business Suite Release 12 implementation, Cummins Power Generation was strongly inclined toward implementing a competing product as its primary warehouse management system.
Cummins Power Generation had the competing solution in a few of its other facilities, so the company had a large internal knowledge base and comfort level with the product. A similar integration solution was being considered for integration with Oracle E-Business Suite Release 12. However, Cummins reconsidered the solution after a workshop enabled the company to evaluate both Oracle Warehouse Management and the competing solution for its short-listed critical requirements. After learning more in the course of the workshop, Cummins was convinced that the Oracle solution would meet its needs.
Cummins Power Generation chose Oracle Warehouse Management for several reasons, including its truly integrated architecture. The Oracle solution offers highly flexible directed picking and put-away rules and integrates pull-based Kanban lean manufacturing processes to material planning. It also enables Cummins to cross-dock opportunities for back-ordered sales and replenishments.
Cummins Power Generation engaged Infosys to implement an end-to-end warehouse management system, providing process improvements based on a package implementation approach and industry best practices. The company selected Infosys as the implementation partner to help analyze, design, and implement the Oracle solution to meet its business objectives.
Working with Cummins’ seven-person team and dedicated business users, Infosys completed the implementation on time and on budget in 13 months for the largest Cummins Power Generation plant in Fridley, Minnesota.
Cummins Power Generation Inc. is a worldwide provider of electrical generators and power generation systems, components, and services in standby power, distributed power generation, as well as auxiliary power in mobile applications to meet the needs of a diversified customer base.