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Cummins Engines Case Study

Cummins makes diesel and natural gas powered engines for the heavy and mid-duty truck, RV, automotive, and industrial markets, along with marine, rail, mining, and construction. In addition to its flagship Engine segment, other business segments include Components (filtration products and fuel systems), Power Systems (vehicle and residential generators), and Distribution (product distributors and servicing).

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Challenges


Cummins wanted to develop a global Sourcing model giving them the ability to efficiently source direct materials. Initial roll-out included the Components Business Unit with plans to roll-out additional business units in future phases. Cummins needed a comprehensive solution that would allow them to source a large number of items efficiently as well as maintain global contracts, manage contract development documents and also complete risk assessments, audits, and certification tracking for suppliers.

The CSS Approach


CSS implemented a hybrid Procurement Cloud solution, including Supplier Management, Supplier Qualification Management, Sourcing, Inventory Management, Contracts and Supplier Portal, that supported their move to the Cloud, and resulted in improved daily business operations—while also leveraging their E-Business Suite foundation. Integrations included: Supplier Inbound (EBS), Item Inbound (PiM), Employee Inbound (OneSource), Value Set Data – Inbound (EBS), BPA Data – Outbound (EBS).

Results

By implementing Procurement Cloud with their instance of Oracle E-Business Suite, Cummins advanced and modernized their purchasing processes, while reducing supplier risk. They also successfully developed repeatable processes for future business unit roll-outs. The innovative PaaS solution with integration to Cloud Sourcing extended their functionality and reduced product cost.

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    Reduction of monthly/annual consulting use

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    Developed a standardized global sourcing model

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    Centralized management of global agreements, terms, and letters of intent

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    Provided Innovative PaaS solution with integration to Cloud Sourcing

Centralized processes around procurement have dramatically improved our purchasing approach. We gained functionality and plan to save costs...we're tracking that very closely.

Kirsten Maguire, Project Lead, Cummins Engines

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