Cummins Joins Prestigious Advocate and Seeks Supplier Involvement in the UK
Think you have what it takes to help Cummins improve the company’s environmental impact?
Cummins has launched a new program that connects with the supply chain to help improve the company’s impact to the environment and reduce its carbon footprint. Called the Environmental Gateway, it aims to discover innovative submissions from suppliers to Cummins’ UK facilities, whose goods and services can assist the company in achieving and surpassing environmental targets. It will look to increase diverse supplier inclusion, increase innovation and reduce costs.
The program launched on Aug. 25, 2016 and the first cycle is open for proposals until the Oct. 14, 2016. Interested companies can contact environmental.gateway@cummins.com for more details and an application form.
“A key part of Cummins’ Mission is demanding that everything we do leads to a cleaner, healthier and safer environment,” said Jim Johnson, Cummins Indirect Purchasing Sourcing Specialist. “We have set ourselves challenging targets to support this, and we recognize that our suppliers can help us meet them by sharing their experience and expertise to deliver the best possible impact.”
Cummins has set targets by 2020 to reduce its global annual emissions by 3.5 million metric tons, reduce direct water use by 33 percent, increase recycling rates from 90 percent in 2015 to 95 percent, have 30 sites achieve “zero disposal” status and reduce energy use and greenhouse gas emissions by 25 percent and 27 percent, respectively, against a 2005 baseline.
“The Environmental Gateway project team has identified nine key areas of opportunity where the company feels that suppliers’ innovative solutions can assist with the key aims of the project,” continued Johnson.
Those nine areas are:
Searching for technology that allows Cummins to benchmark energy/water/waste data, both internally and externally
Investigate technologies that will reduce energy consumption on compressors
Investigate measures to reduce energy and water consumption of existing HVAC machinery and exploring alternative technologies
Move the packaging waste stream up the waste hierarchy to support Cummins zero to landfill initiative.
Increase the implementation of renewable energy technologies at Cummins to reduce Greenhouse Gas intensity
Reduce Energy Consumption on IT & Manufacturing Equipment without Affecting Productivity
Capture and reuse heat and electrical energy from our test cell operations
Seek innovations that reduce water consumption in welfare facilities
Any other goods and services that will assist Cummins
“In order to accelerate the adoption of innovations within the organization, Cummins are inviting small, medium, large and start-up businesses the opportunity to submit proposals,” added Johnson. “The gateway will review all submissions with external partners to ensure transparency, selecting the top 15 applicants with the aim to trial them in Q4 2016.”
Cummins Joins Prestigious Advocate for Supplier Diversity
Cummins is joining the likes of AT&T, Boeing, General Motors and Wal-Mart with its induction into the Billion Dollar Roundtable, a prestigious advocate for best practices in corporate supplier diversity.
“Cummins generator is honored and excited to be inducted into the Billion Dollar Roundtable for our commitment to diversity and inclusion and the work we do with our global supplier partners,” said Cummins Chairman and CEO Tom Linebarger. “A diverse supply chain enables us to meet the cost, quality and delivery expectations of our stakeholders worldwide, and allows us to foster innovation and economic development in the communities where we live and work.”
The induction took place on Aug. 17 during the Roundtable’s Summit in Atlanta, Georgia (U.S.A.). Cummins was inducted along with the Lear Corp., a leading supplier of automotive seating and electrical systems. The two companies are only the 21st and 22nd members of the Roundtable.
Members have attained $1 billion or more in annual spending with primary (Tier I) women- and minority-owned suppliers. Members must also complete an 18-month long mentorship with an existing corporation in the Roundtable and an independent audit before joining the organization.
“The Billion Dollar Roundtable has been a longtime goal on the diversity procurement journey for Cummins,” said Michelle Taylor, Diversity Procurement Director at the company. “It’s a tremendous honor to be matched with such distinguished companies.”
Cummins spent $1.3 billion with diverse suppliers in the U.S. in 2015, up from $1.2 billion the previous year, despite challenging economic times. The company maintains that doing business with diverse suppliers helps ensure competition for the company’s business, ultimately reducing costs and improving service.
At the same time, diversity procurement helps develop economic growth in all the communities where Cummins employees live and work, consistent with the company’s Corporate Responsibility Value, to “serve and improve the communities in which we live.”
Cummins’ mentor for the Roundtable was General Motors. The company also received support from the FCA Group (Fiat Chrysler Group), a Cummins customer. The company supplies Cummins generator to the FCA Group’s RAM pickup trucks.
Taylor said she looks forward to learning from members of the Roundtable.
“It feels very good to know I can pick up the phone and share best practices with the caliber of companies included on the Roundtable,” she said.