1. Cummins Supplier Conference | August 4
Priscila Mendes
Indirect Purchasing Leader
Cummins Supplier Conference | August 4

2. Insert Data Classification

3. In order to achieve this goal, Cummins must be the BEST in everything we do:
Provide the BEST shareholder returns
Design and build the BEST products
Provide the BEST customer support
Be the BEST place to work
Hire the BEST employees
Partner with the BEST Suppliers

4. SRM Category Partner VoS
To partner with the BEST suppliers, we must be the BEST customer to our suppliers…
SRM
Supplier Relationship Management
Category
Partner
VoS
Voice of Supplier Survey

5. VoS – Voice of Supplier
The survey is hosted by the Corporate Executive Board (Gartner)
The standard survey allows Cummins to benchmark
Supplier and Cummins respondents rate 26 key attributes of the Procurement function across six categories in a scale from 1 to 5:
Cost of doing Business,
Delivery and Support,
Flexibility and Ease of Doing Business,
Quality,
Partnership,
Competitiveness.

6. Voice of Supplier Survey – A journey that started 4 years ago…
2014
The initial feedback was used for Cummins to review our process and define a baseline.
2015
Focus on connecting with Individual Suppliers to go deeper on their feedback and improve those specific partnerships.
Start sharing results with CLT.
2016 – S1
Focus still on Individual Suppliers focusing on the evolution of their feedback and joint efforts to improve it.
Category Partner Introduction.
2016 – S2
Individual work continues but a new layer is added reviewing combined negative feedback to define actions. S1
In process…
Sharing broadly the overall results

7. Flexibility and Ease of Doing Business
Cummins supplier average response is very similar to benchmark at
Cost of Doing Business
Delivery and Support
Flexibility and Ease of Doing Business
Quality
Partnership
Competitiveness
Source: CEB (Gartner) for Cummins

8. Cummins internal response average at 3.66 slightly above benchmark…
Cost of Doing Business
Delivery and Support
Flexibility and Ease of Doing Business
Quality
Competitiveness
Partnership
Source: CEB (Gartner) for Cummins

9. In general our internal perception of ourselves is close to our suppliers view…

10. This process allows Cummins to work with individual suppliers to improve the partnership…

11. 1 – Sharing of future plans
Based on 2016 feedback from our suppliers we have identified three key focus:
1 – Sharing of future plans KJ
3 – Cummins is not treating suppliers as partners
2 – Cummins needs to improve capability to answer supplier payment questions

12. 1 – Sharing of future plans
Re-instate supplier conferences in 2017
Earlier engagement of category partners in new product development and projects
Strategic Supplier Meetings (SRM process)

13. 2 – Cummins needs to improve capability to answer supplier payment questions
Focus on improving on time payment. From 75% in Jan 2016 to an average of 85% now.
Supplier Portal with payment information for easy access.
Go to > supplier.cummins.com

14. 3 – Cummins is not treating suppliers as partners
Introduced Category Partner Program
Reinforce SRM with Strategic Partners and adjust joint work plan to address supplier’s key concerns
Continue VoS surveys and actions

15. The journey is not over…
We will continue to assess and improve our SRM process with strategic partners
25% of our suppliers still perceive that we are not improving. There is more work to do.
If you have suggestions or comments please let us know…Next Survey in Q