Supply Chain Reconstruction Research On Cummins Fuel System

Cummins Fuel Sytem Wuhan is the wholly owned subsidiary of Cummins Coporate. Engine is designed in US, manufactured in China, its sub-parts is sourced Gloablly as an World-Class internation Company. Generally Speaking, the each new project development cycle time is about 2 to 3 years. During this period, the market fluctuate uncertainly, impacted by Fuel Market/New energy/Police environment. The Engine bussiness has low demand comparing with Consume Automobile Market. This special situation requires more flexible Supply Chain that can resistant the uncertain market demand fluctuation.The long-term payback return and huge fixed asset investement and unstable market demand brings tremendous challenge to supply chain. Especially, the Global Sourcing is facing serious challenge.Cummins Fuel System Wuhan also face the several issues such as uncertain forecast demand / high inventory/ long leadtime/Material shortage/ unstable quality that these issue result in poor delivery to our Customer.As an employee in Cummins Fuel System Wuhan, I ever worked as Project Manager and VPI Sourcing Manager role. I have well known of Cummins project management and supply chain management process. In the process of developing new Engine, the quality of supply chain is critical to success of whole project. There is a specific process call VPI which guide all the new projects launch in Cummins, that Cummins survive in fierce competition in Global market by using VPI. All cross-functional team work at same page to share information and move forward together. The article will introduce what’s the VPI and what’s the issue of current process, then get conclusion of why it has the issue. From the aspect of Supply Chain Management, the thesis will focus sourcing strategy/contract/supplier quality/supplier risk analysis, figure out the key issue and provide the solution. That will help Cummins Fuel Sytem reduce the supply risk and procure parts at reasonable price and acceptable quality, also right time.After analysis by using decision making process such as Supply Chain Management/Situational leadership theory/HR management/Bullwhip Effect/VOC Tool.ect. it comes to the solution to solve the issue we are facing and validate its effectiveness in Supply Chain.