Cummins Power Generation Inc. Cuts Cycle Time by 58% with Warehouse Management System
 
 

Cummins Power Generation Inc. Cuts Cycle Time by 58% with Warehouse Management System

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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.

 
Scalable Warehouse Management Solution

A word from Cummins Power Generation Inc.

  • “Working with Infosys, we were able to deliver the project on time and on budget. This was a very significant accomplishment considering the size and complexity of the project. We are well on our way to achieve our goals as Oracle Warehouse Management helps us to increase the velocity of our supply chain and manage growth.” – Mark Rangitch, Director of Operations and Project Sponsor, Cummins Power Generation Inc.

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.  

 
Increased Inventory Accuracy

 
Automated Capture and Exchange of Information

 
 

 
 

Challenges

  • Ensure operational efficiency in each area of the business to offset shrinking margins in the power generation sector and improve productivity
  • Increase velocity of internal supply chain
  • Consolidate local manufacturing systems across various regions, including China, Singapore, the United Kingdom, and the United States

Solutions

Oracle Product and Services

  • Reduction in receive-to-stock cycle
  • Reduced outbound order travel time, resulting in additional savings
  • Increased inventory accuracy

Why Oracle

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.

Implementation Process

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.

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