Cummins Implements Suite of RedPrairie Products to Address Business Growth and Improve Customer Service

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RedPrairie, a global leader in supply chain technology solutions that enable business process transformation, announced today that Cummins, Inc. (NYSE: CMI) will implement RedPrairies solutions suite as part of its global supply chain strategy initiative. Cummins will leverage RedPrairies warehouse management solution (WMS) across its Fleetguard and PowerCare divisions to achieve greater operational efficiency and improve logistics performance. In subsequent rollouts, the divisions will implement RedPrairies Workforce Performance Management (WPM), slotting, real-time transportation optimization engine (COPLEXTM) and RFID applications. The automation and enhanced functionality will enable Cummins to rapidly address changing business growth and customer service requirements.

According to Rick Allen, Director, Global Logistics Strategy for Fleetguard, Both Cummins Fleetguard and PowerCare business units independently investigated and evaluated supply chain solution providers before we recognized there were synergies in our requirements. Once we joined forces, it was readily apparent that RedPrairies broad, flexible solution could simultaneously address the distinct processes and needs of both divisions.

The team jointly selected RedPrairie in March to replace the divisions limited and outdated legacy WMS solutions and supplant their manual environments.

Allen continues, We collectively selected RedPrairie based on a number of factors. We required a supply chain technology provider with a global presence and an integrated suite of solutions to address our future plans. The solutions had to be flexible to integrate to disparate systems and they had to be able to work within our preferred technology architecture. RedPrairie clearly met each of these requirements.

RedPrairies Warehouse Management Solution, DLx Warehouse, optimizes inventory management processes, providing Cummins with enhanced inventory control. As a result, the company will be able to offer better customer service by ensuring customers accurate and on-time order delivery.

Dan Hoffman, WMS Project Manager with PowerCare says, RedPrairies WMS solution is extremely robust and flexible. Because the capabilities we needed are integrated as part of their core solution, the need for customization is minimal. That was a key benefit to us.

Mark McKinney, WMS Project Manager for Fleetguard adds, Kitting is a critical capability to our business, and RedPrairies work order functionality provides us a great deal of flexibility in this area.

RedPrairies industry-leading Workforce Performance Management (WPM) solution will enable Cummins to achieve 10-30 percent labor productivity savings through a powerful combination of 40 years of experience developing labor standards and preferred methods, robust productivity management software, change management and incentive programs.

By shaving seconds off each task performed within a given job, for all jobs across all sites, Cummins will be able to achieve significant productivity improvements that will allow them to achieve greater efficiencies with the same headcount.

As part of the global rollout, Fleetguard will implement the solution at two U.S. sites and one European site over the next three years, with additional rollouts thereafter. PowerCare plans to implement RedPrairie's WMS in Mechelen Belgium in the first quarter of 2006, followed by their Memphis, TN location in the second quarter of 2006. Workforce Performance Management implementations will begin shortly thereafter.

Says Allen, We were looking for a world-class system with global functionality. We chose RedPrairie in part for its strong global presence to help us address challenges at the local level.

Comments RedPrairie Company Leader John Jazwiec, Cummins astutely collaborated across divisions and facilities to determine a single source supply chain solution. We are increasingly seeing customers engage in projects that reach across divisions and sites for improved efficiencies, increased savings and shared data for more powerful decision-making. RedPrairie is a preferred provider for companies that require superior solutions, local expertise and adaptable supply chain networks.

RedPrairies comprehensive, integrated solutions suite includes: warehouse management; transportation management; workforce performance management; event management; slotting; visibility; performance measurement; and RFID for EPC/ISO compliance and mobile resource management.

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