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Engines supplier Cummins is facing up to the strategic issues raised by its move to an e-supply chain.
Engineering change - Part 1 | Part 2
Cummins Diesel, a wholly owned distributor of the $6.6 billion Cummins Engine Company, operates a complex business model. With its headquarters in Wellingborough, UK, it works through a network of 14 owned branches in the UK, Dublin, Italy and Germany.
The firm has several strands to its business: the direct supply of new engines to equipment manufacturers; parts; service repairs; and sales of power generation systems for other parts of the parent organisation.
Some 80% of engine sales involve some degree of customisation, with Cummins Diesel adding value to standard engines from its parent’s factories through ‘upfits’ or packaging work. The scope of this work is diverse, ranging from the simple addition of temperature switches to a complete industrial package with customer specified radiator, transmission, canopy and instrument panel.
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Consultants' Advisory 2001
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