Cummins Inc. opened a global logistics hub in Singapore, one of the company's eight master distribution centers for parts and filters globally.
The total investment in the Singapore Global Logistics Hub was $5.4 million and is part of Cummins’ effort to enhance its aftermarket product delivery globally.
The hub will serve markets that include the United States, Europe, China and India, as well as customers across Northeast and Southeast Asia. Teo Ser Luck, minister of state for trade and industry, attended the opening event at the CWT Pandan Logistics Center.
The hub is a consolidation of operations from three distribution centers in Singapore and the company said it is designed to enhance operations safety. It has a three-tier mezzanine storage system with in-rack sprinklers to strengthen fire protection, a vehicle-restraint system and material-handling equipment with cameras and motion sensors for added operations safety.
Also, the warehouse adopts barcode technology in a radio frequency environment to control and optimize material flow. An increase in the facility's height and the introduction of a smart-slotting strategy boost space utilization by 30 percent.
Cummins said the new features of the facility are in line with its commitment to provide employees with a safe working environment. Cummins said it will see a 20 percent boost in productivity, faster order fulfillment time and operational cost savings with the new facility.
"The establishment of the Cummins Global Logistics Hub in Singapore is a reinforcement of our global master distribution hub strategy and a reflection of our commitment to customers,” Cummins Global Logistics executive director Doug Sunkel said in a statement. “There are currently eight master distribution hubs in the world — Singapore, Mexico, Brazil, India, Belgium, China and two in the United States of America — supporting our international network and customers' businesses that span over 190 countries and territories. Singapore is a world-class global logistics hub with a strong advantage of being at the heart of Southeast Asia and sitting right across the major shipping lanes. Leveraging the global connectivity and strategic location of Singapore, Cummins will continue to enhance our capabilities in this part of the world to support the increasing needs of our customers."