Cummins Shipping and Handling Harmonization
As shared previously in the month of November, Cummins is updating and harmonizing the shipping and handling fee structures throughout our supply chain. This update is intended to provide a consistent customer experience across North America, as well as establish the pathway to providing transparent shipping and handling costs during a parts transaction. These changes are also a prerequisite to future supply chain and delivery automation enhancements.
For background; the process was activated on October 25th, 2020 through an update to internal Cummins systems. We have received feedback that the unintended changes have had a negative impact, and we apologize for the inconvenience and frustration this has caused.
Through the constructive feedback you provided, we have adjusted our shipping and handling approach by parts order type to align more appropriately with the marketplace. Accordingly, please see the updated Dealer Policy Manual, specifically sections 1 and 2. Significant updates include the following:
· Branch Totes and Will Call Orders will remain with no shipping and handling costs for daily and stock orders
· Harmonization of cost per line item on emergency, daily and stock orders
· Harmonization of line item min/max levels and free shipping and handling thresholds on stock orders
The new shipping and handling strategy will be implemented on Sunday November 22nd. We understand that the updated shipping and handling approach may alter your parts stocking and inventory strategy. To ensure our stakeholders have time to update their inventory and stock levels according to the new approach, Cummins will maintain the $3,000 ($4,000 CAN) threshold for free shipping and handling on stock orders through December 4th, 2020. Effective December 5th, 2020 the threshold will increase to $5,000 ($6,500 CAN).
Cummins remains committed to correcting the unintended negative impacts to our dealers and customers. A process for crediting a portion of the freight charges between October 26th and November 20th is in process and will be executed in partnership with your local Account Executive, as quickly as we are able. Cummins is greatly appreciative for your partnership, as well as the ongoing feedback we receive from our dealer partners.