Cummins builds US$5.4m global logistics hub in Singapore

Integrating the company’s warehouse and office into one location.

Cummins, a global power leader offering diesel engines and related technology, has invested US$5.4m in a Global Logistics Hub to consolidate its Singapore operations from three distribution centers into a single location. Cummins Singapore Global Logistics Hub is aimed at helping the company to enhance its aftermarket logistics capabilities at a global level as it will work in tandem with the other hubs in United States, Europe, China, India, Mexico, Brazil and South Africa to serve their customers worldwide.

According to Amy Lum, director of Cummins Global Logistics, Singapore, with the new facility, Cummins will see a 20% boost in productivity, faster order fulfilment time and operation cost savings.

Incorporating many innovations to ensure smooth and efficient operations, the Hub features a three-tier mezzanine storage system with in-rack sprinklers which is said to be uncommonly seen in the industry, and in a country with tight space constraints like Singapore, such an organized and compact system storage solution helps to improve productivity by 20-30%. The company also implemented a vehicle restraint system at the docks, and made sure that they improve their system in material handling equipment that help to provide safe and conducive working environment in the warehouses. Furthermore, the Hub’s attributes include camera and monitoring system with pickings at levels as high as 10m, cabin featuring a tilt function to improve pickers’ field of vision, innovative designed pickers are especially suited for narrow aisles, sensors are available at the bottom of the picker, which is a blind-spot when picking and auto-brake system when someone walks in front of the equipment.

Since the warehouse and office staff are housed in the same building, Amy said that the space emphasizes an open and collaborative working space, with no dedicated workstations for staff including the directors and senior management team. The Hub’s office also boasts of a fantastic view of the Pandan Reservoir, the Jurong River and the port. It also features 26 meeting and training rooms, a do-not-disturb corner where noise is forbidden, and prayer rooms.

According to Amy, the provision of massage chairs, cycling desk, and ergonomic workstations that allow standing while working have been popular amongst the staff, and has helped to foster a highly collaborative and motivated working environment.

Challenges they faced

Though the move of Cummins seen zero impact on their customers and suffered no inventory loss. Amy said that this significant move of the company was complex, having involved thousands of SKUs and parts.

“Transitioning from 3 sites during the move while maintaining business as usual was a big challenge. We tapped on having a solid resource plan comprising of top talents from local supply chain expertise. We also leveraged on overseas warehouse expertise at the supervisory level from our Belgium, China, India, Memphis locations to ensure that the move had zero impact on customers. With this diversified team of both local and overseas expertise, the move was completed ahead of schedule,” she explained.

When asked on what’s the biggest obstacle they faced to make this project possible, Amy said that it was implementing the needed layout and systems as they are not often seen in Singapore warehouses.

“Cummins worked closely with a variety of experts to ensure that the Hub was built to the exacting standards that Cummins required. The company leveraged its global network of expertise to support the construction of the hub as well as the subsequent move. Planning took 4 months, and the actual move took place at 10pm to 8am daily over 27 nights,” said Amy.

Recently, the organized layout of the company’s warehouse has attracted external parties and businesses to request for visits to study it.