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The fourth regional distribution center (RDC) for spare parts of Cummins starts its formal operation in Xi’an on 11th June. With the standard warehouse logistics center and intelligent global online logistics information platform, Cummins will provide integrated and optimized intelligent regional logistics services for the local market so that the customers there could enjoy a high quality and convenient spare parts supplying services.
The project of Cummins Regional Distribution Centers in China, which started in 2012, aims at improving its ability of supplying spare parts here. The first center was established in Shenyang in 2013, and the next two centers was opened in Beijing and Shanghai respectively. The center in Xi’an is the fourth of the same kind in China. As an extension of Cummins global logistics distribution center in the region, the center will be dealing with the packaging, storage, logistics and distribution of Cummins spare parts and other relevant products. With a warehouse of 2,100 square meters which could store up to 4,000 units of spare parts, the center can handle the receiving, sorting, packaging as well as delivery of over 200 spare parts on average every day. The maximum daily handling capacity could reach 700 units.
The center in Xi’an embodies the market supply chain strategy of Cummins: getting the warehouse of spare parts closer to the end users and lowering the whole logistics operating cost through the scale economic effect created by the logistics services for all Cummins business units. Working together with Xi’an Cummins, the center will be also responsible for the localized packaging and delivery of Xi’an Cummins parts in the aftersales chain, thus help with the separation of the logistics of the spare parts in the aftersales services from the production in Xi’an Cummins. It will greatly improve the whole operating efficiency and shorten the response time of meeting the customers’ requirements.