Proving the Business Case for the Internet of Things

Cummins’ new Singapore logistics hub uses latest RF technology

Steve Rogerson
July 30, 2015
 
Indiana-based engine maker Cummins has opened a global logistics hub in Singapore that uses the latest RF technology to control product flow.
 
This is one of the company's eight master distribution centres for parts and filters globally. The Singapore hub boasts a total investment of US$5.4m and is part of the company’s efforts to enhance its aftermarket product delivery globally. The hub will serve the USA, Europe, China, India as well as customers across the north-east and south-east Asia regions.
 
Teo Ser Luck, Singapore’s minister of state for trade and industry, graced the opening event at the CWT Pandan Logistics Centre this month. The hub is a consolidation of operations from three distribution centres in Singapore.
 
The building has a meticulously designed layout that aims to enhance operations safety. It boasts a three-tier mezzanine storage system with in-rack sprinklers to strengthen fire protection, a vehicle-restraint system and material-handling equipment with cameras and motion sensors, for added operations safety.
 
Also, the warehouse has a management system and barcode technology in an RF environment to control and optimise material flow. With an increase in the facility's height and introduction of a smart-slotting strategy, space use is boosted by 30 per cent.
 
The new features of the facility are in line with Cummins commitment to provide its employees with safe working environments. With the facility, Cummins hopes to see a 20 per cent boost in productivity, faster order fulfilment time and operation cost savings.
 
"The establishment of the Cummins global logistics hub in Singapore is a reinforcement of our global master distribution hub strategy and a reflection of our commitment to customers,” said Doug Sunkel, executive director of Cummins global logistics. “There are currently eight master distribution hubs in the world – Singapore, Mexico, Brazil, India, Belgium, China and two in the USA – supporting our international network and customers' businesses that span over 190 countries and territories. Singapore is a world-class global logistics hub with a strong advantage of being at the heart of south-east Asia and sitting right across the major shipping lanes. Leveraging the global connectivity and strategic location of Singapore, Cummins will continue to enhance our capabilities in this part of the world to support the increasing needs of our customers."
 
Cummins designs, manufactures, distributes and services diesel and natural gas engines and related technologies, including fuel systems, controls, air handling, filtration, emission systems and electrical power generators. Headquartered in Columbus, Indiana, it employs about 54,600 people worldwide and serves customers in 190 countries and territories through a network of 600 company-owned and independent distributor locations and 7200 dealer locations. It earned $1.65bn on sales of $19.2bn in 2014.