Dealer Update Rocky Mountain Region...Per TSB 110277, for a window in 2010 all ISX/Q engines were...
Transcript of Dealer Update Rocky Mountain Region...Per TSB 110277, for a window in 2010 all ISX/Q engines were...
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January 2019
Dealer Update
Rocky Mountain Region
Depend on Cummins
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Logistics
Exits
Restrooms
Timing
Refreshments
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Agenda – Parts
Topics
1. Introduction
2. Market Updates
3. Parts Promotions & Programs
4. Dealer Pricing & Policies
5. Channel Management
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Regional Dealer Field Support Team
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▪ Parts Managers
• First level support for parts operational issues and escalations
▪ Channel Managers
• Second level support to help direct/address general inquiries
• NEW Dealer inquiries, contracts and contract maintenance, channel readiness, certifications and training requirements
• Also help with system access and provide general dealer support
▪ Cummins Care
• 1-800-CUMMINS | Available for technical support
▪ Dealer Support Services
• 1-800-800-4230 | Available for non-technical support
▪ On-Highway Sales
• Primary support for new unit sales
▪ Branch Managers
• General Support | All inquiries about Rocky Mountain operations
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▪ Dealer Account Executive (DAE)
• Responsible for generating Cummins preference on engine sales through the OEM dealers and supporting the dealership operations. Large Markets
▪ Fleet Account Executive (FAE)
• Responsible for generating Cummins preference on engine sales through the Fleets. Large Markets
▪ Territory Account Executive (TAE)
• DAE/FAE combined roles in smaller markets
Role
Defined
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▪ Arizona and New Mexico
• Kris Young – Dealer AE
• TBD – Fleet AE
▪ Colorado
• Jeff Garberding – Dealer AE
• Annette Vettraino – Fleet AE
▪ Idaho
• Bryan Austin – Territory AE
▪ Montana, Wyoming and Western North Dakota
• Kelly Pleas – Territory AE
▪ Nevada
• Nic Dobson – Territory AE
▪ Utah
• Ron Dimmick – Dealer AE
• Rodney Nehring – Fleet AE
▪ Technical Support Managers (No Boundaries)
• Steve Boatright
• Beth Miya PUBLIC
Staff | Field Sales and Technical Support
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2018 Dealer Satisfaction Survey
65
70
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80
85
90
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2010 2011 2012 2013 2014 2015 2016 2017 2018
Rocky Mountain v. North America on Dealer Satisfaction
Rocky Mountain Region North America
Once a Year
Improve our Support
Voice your Honesty
Results |
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2018 Dealer Satisfaction Survey Actions |
Understand Customer Urgency of Complaint
• Seek to Actively Engage with Dealer for Complete Discovery
Work to Resolve Parts/Service Issues Timely
• Enable Staff to Request Escalation when Necessary
Communicate: Easy to Reach and Return Phone Calls
• Improved On-Boarding and Customer Satisfaction Skills
Develop a Stronger Relationship
• 1-1-1 Strategy
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Cummins was founded by Clessie Cummins and
W.G. Irwin, who believed in the power of ideas and
had a shared vision of what ingenuity and hard work
could achieve.
Cummins took the available technology and transformed diesel into a
reliable and everyday use of transformation power source.
Our History
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Vision
Innovating for our customers to power their success.
What we want to accomplish
Mission
Making people’s lives better by powering a more
prosperous world.
Why we exist
Values
▪ Integrity
▪ Diversity & Inclusion
▪ Caring
How we will do it
▪ Excellence
▪ Teamwork
Our Story
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Why Choose Cummins?
1.3M+ Enginesbuilt in 2017 49-4,400 hp
Broad rangeof power
100 Years of
experience
Dealer locations worldwide
7,500Approx.
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Emissions LeadershipApplication Date In-Cylinder
Only
Cooled EGR NOx
Absorber
SCR Diesel
Particular
Filter
Diesel
Oxidation
Catalyst
Tier 3 / Stage IIIA 60-751 hp 2005
Tier 2 751+ hp 2006
Euro 4/5 On-Highway 2006 / 2009
EPA ‘07 On-Highway 2007
EPA ’07/’10 Pickup Truck 2007
EPA ‘10 On-Highway 2010
Tier 4 Interim /
Stage IIIB
174-751 hp 2011
75-173 hp 2012
Euro 6 On-Highway 2013
EPA ‘13 On-Highway 2013
EPA ‘13 Pickup Truck 2013
Tier 4 Final /
Stage IV
49-74 hp 2013
75-130 hp 2015
120-400 hp 2014 / 2015
400-751 hp 2014
Tier 4 Final 751+ hp 2015
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Recent Innovations
X12AEOS Class 7
Concept Vehicle
X15 Performance and
Efficiency Series
QuietConnect &
PowerConnect
Single Module
Aftertreatment System
QSK95 Generator
Sets
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The Markets We Serve
Heavy-duty Truck Medium-duty
Truck & Bus
Agriculture
Marine Mining Light-duty Automotive
& Recreational Vehicle
Construction Oil & Gas Fire & Emergency
Defense Power Generation Rail
This is not an exhaustive display of Cummins-powered applications
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Powering On-Highway Markets
▪ Meeting global emissions with fit-for-market solutions
▪ Offering power options for your duty cycle
• 49 – 605 hp range (36 – 451 kW)
• 206 – 2,050 ft-lb torque range (279 – 2,779 Nm)
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A portfolio of power solutions encompassing integrated technologies
across the powertrain, whether powered by diesel, natural gas, hybrid
or electric technologies.
Cummins
Integrated
Power
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2018 Natural Gas Product Line
Available in North America
Certified Near Zero Optional Low NOx
0.02g/bhp-hr
Certified Optional Low NOx
0.1g/bhp-hr
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October 2018
Public
NAFTA
Heavy-Duty Class 8 Group 2 Market Share
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Engine Manufacturers Class 8 Group 2 Market Share* (October 2018 YTD)
2017 Market Share2018 Market Share
October YTD
*Wards NAFTA Class 8 Group 2 Truck Shipments include diesel products with engines below 10L excluded
31%
19%
33%
14%
Cummins Navistar Volvo/Mack
Detroit Diesel PACCAR
Cummins Navistar Volvo/Mack
Detroit Diesel PACCAR
33%
35%
13%
17%2%
18.5%
32.1%
12.2%
34%
3.3%
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October 2018
NAFTA
MidRange Class
6, 7 and 8 Group 1
Market Share
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Engine Manufacturers Class 6, 7 and 8 Group 1 Market
Share* (October YTD 2018)
2017 Market Share
2018 Market Share
October YTD
* Wards NA Medium Duty Market Share data (Class 6,7,8 Group 1 data) includes diesel products, ACT historic build data and Cummins
account teams data
Cummins
Navistar
Ford
MB/DD
Hino79%
9%
4%4% 4%
81.3%
9.3%
4.2%1.4% 3.9%
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Cummins Electrified Power
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Cummins Invests in Electrification
10,000 of the brightest engineering minds
Annual spend of $700M on powertrain innovation
Commitment of $500M over the next 3 years
on electric powertrain technology innovation
Added battery pack design capability
with acquisitions of Brammo and Johnson
Matthey Battery Systems
Advanced air
handling & fuel
system controls
for HD diesel
engines
High-efficiency
spark-ignited
technology
Proton
exchange
membrane and
solid oxide fuel
cell
technologies
Battery
technology
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Cummins Electrified Power Portfolio
HYBRID
Traction
BATT
Prime
MoverGen
Fuel
integrated powertrain system+ +
COMPONENTS
TractionBATTBATTBATT
FULL ELECTRIC
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AEOS Concept Truck
Battery Pack 140 kW hour
Peak Power 350 kW
Continuous 225 kW
Peak Torque 3400 Nm
Continuous 1850 Nm
30+ MPGe 100 miles Weight Neutral 1hour
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Quick Reference MUST HAVES
P/N 4081630 – ReCon
P/N 4971451 – EPA13
P/N 5410641 – EPA17Click HERE cummins.com/brochuresPUBLIC
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MART.CUMMINS.COM
What is it? Catalog and marketplace for Cummins marketing collateral.
What will it do? Provides a channel for marketing collateral requests.
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Connected Products
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Connected Diagnostics™Software application that analyzes Cummins engine fault data and sends information to the customer, including:
▪ Recommended customer action(s)
▪ Prioritized fault code information
▪ Suggested root cause
▪ Performance impact
Public
Connected Software Updates™Over-the-air solution that allows customers to remotely update software for Cummins powered electronic engines.
▪ Minimizes time & effort to keep engine software up-to-date
▪ Downtime reduced for required updates
▪ Uses equipment telematics system
Connected Advisor™Daily reports providing customers with insights into fleet health and recommended actions for maintenance and repair.
▪ Transforms engine faults to specific actionable recommendations
▪ Reduces notifications by 90% − decreasing information overload
▪ Estimates how long the equipment can continue to operate
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Q+A
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2019 Parts Programs and
Promotions
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ISX Growth Group
▪ ISX Growth group: EPA 2010 -
EPA 2013✓ Over 400,000 active engines
✓ Most engines are still in the Genuine
Channel
▪ ISX Legacy group: EPA07 - Older ✓ Over 200,000 active ISX engines
✓ Current rebate program continues for 2019
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Heavy Duty Overhaul Promotions Continue
Through 2019
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NEW Smart Series Overhaul Kits
For EPA 2010 & 2013 ISX15 Engines
Classic
Performance
Endurance
1
2
3
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The Classic Overhaul
Additions To The Classic for 2019
Saw Cut & Fracture Split
Connecting Rod Bearings
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Classic Kit – P/N Supersession
Current
Part NumberDirect Supersession
Classic Kit
Part Number
437617700 150mm 547306500
437617200 152mm 547306600
437617800 150mm 547306900
540598700 152mm 547307000
437617900 150mm 547307400
540598600 152mm 547307500
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Performance Overhaul
Contents of Classic Overhaul Kit
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Endurance Overhaul
Contents of Performance Overhaul Kit
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Overhaul kit package design
Insert Data Classification
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Connecting Rod Bearings
ISX Smart Series Overhaul Kits Offering
Fuel Connectors
Fuel Injectors
Connecting Rods
- CLASSIC -CURRENT - PERFORMANCE - - ENDURANCE -
Current Overhaul Kit
Cylinder Head
Lube Oil Pump
Water Pump
Coolant Thermostat
Connecting Rod Bearings
Cylinder Head
Coolant Thermostat
Connecting Rod Bearings
Lube Oil Pump
Water Pump
Coolant Thermostat
Pistons
Cylinder Liners
Main Bearings
Upper Eng Gasket Set
Oil Pan Gasket
Fuel and Lube Filter
Oil Bypass Valve
Current Overhaul Kit
Current Overhaul Kit
Current Overhaul Kit
January 2019 Q2 – Q4 2019Release Dates
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Technical Service Bulletins
• TSB 120067 for important information
regarding saw cut and fractured split
connecting rods and bearings
• Both Saw Cut and Fracture Split
connecting rod bearings will be
included (except Endurance)
• TSB 110277 for important information
regarding cylinder liner diameter.
• Additional part numbers for 152mm
cylinder liners
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152mm or 150 mm Liners - TSB110277▪ Per TSB 110277, for a window in 2010 all ISX/Q engines
were built with 152mm Cylinder Liners
• Multiple CPLs and platforms (CM871 and CM2250)
• Cummins is unable to identify specific CPLs or ESNs
▪ New engines / blocks and recon engines / blocks could all be affected
▪ No 100% way to confirm based on CPL or ESN
• i.e. Engine built in 2007 with 150mm liners could have had a block replacement in 2010 that used 152mm liners
▪ The only 100% accurate way to confirm the liner size is by measuring the liners in the block to prevent error
▪ Alerts to this TSB have been added to QSOL in a variety of places
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MidRange Overhaul Kits
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Coming in 2019!
▪ Release of marketing collateral to help
promote MidRange Overhaul Kits
▪ More information to be released on
parts.cummins.com
▪ Advertising campaign geared towards
MidRange Overhauls
▪ ISL Overhaul kit part numbers to be
superseded in Feb/March 2019
▪ 15% rebate provided to customers who buy an
ISL overhaul kit and corresponding head.
Where to Find Information.
On quickserve.cummins.com under the Products
Tab you’ll find a link to MidRange Overhaul Kit
Program
MidRange Overhaul Kits
Contents of the Basic Midrange Kits
▪ Pistons and Rings
▪ Cylinder Liner Kit (for non parent bore engines)
▪ Main Bearings
▪ Connecting Rod Bearings
▪ Upper Engine Gasket Kits
▪ Oil Pan Gasket
▪ 14% Cost savings when purchased as a kit vs. buying components individually
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6 for 5 Injector Program SpecialIncludes Heavy Duty and Midrange Injectors
▪How to receive the rebate:• Provide your local CRM Parts Manager, a
copy of end-user discount where your customer purchased 6 Recon non RX Celect Injectors and was only charged for 5
• Your local CRM Parts Manager will issue credit for the cost of (1) injector. The 5 Injectors may also be eligible for CUMPAS electronic order discounts
- Program excludes Celect RX injectors- This offer cannot be combined with our HD
Overhaul Package Programs
- Parts must be purchased from Cummins RM
Pa
rts P
rog
ram
s
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HPCR ReCon Injectors
A kit of 6 High-Pressure Common Rail
(HPCR) ReCon injectors that saves the
customer 30% vs buying injectors
individually.
For ISB5.9 and ISB6.7 engines for model
years 2002-2012.
Continuing in 2019!
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Let’s
Talk
About
DPFs.
ReCon DPFs are available for:
▪ EPA 10, EPA13 and EPA17
▪ ISX, ISB, ISL and ISC Engines
In 2018 we simplified our “good
core bad core” criteria and
replaced it with an “All Core” return
strategy.
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What Cummins Knows
▪ Genuine new DPFs are superior to will-fit DPFs.
▪ ReCon DPFs perform as good as genuine new DPFs.
▪ ReCon DPFs are superior to field cleanings.
▪ Less downtime than field cleaning
▪ Better reliability than field cleaning
▪ 100% ReCon inspection insures quality
▪ ReCon DPF comes with a warranty
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What are your customers saying to you about DPFs?
▪ Field cleanings vs. replacement?
▪ Will-fit new vs. ReCon DPF?
▪ What is the perception of a ReCon
DPF’s quality?
▪ Is there a “As Long As It Works” attitude?
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Newly Distributed From Cummins
Cummins is leveraging its world class re-seller distribution network investment to offer Major branded Allied Products
1. Competitive re-seller pricing on products
2. Local stocking of product to help you reduce your inventory and still respond to customer demands
3. Alternative vendor source on major industry products/brands
4. Most co-branded and officially Cummins endorsed.
5. Additional re-seller products will be added over the coming months
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Cummins Batteries - DistributionEvery™ Start. Ensured. • Cummins lead acid batteries are designed for many
applications giving you coverage in automotive, power
generation, marine and recreational.
➢ Access to the largest and most capable parts and
service network in North America with Cummins
- High level of service
- Extensive product offering for batteries and battery
related products including:
- Competitive pricing
- Ongoing training and sales support by our national
and local sales and operational teams.
➢ Extended free replacement warranty (18-36 months
depending on the part number)
➢Offers performance and reliability
➢ Additional types of batteries available (including AGM,
gel, and Nickel Cadmium batteries)
Battery Item #, pricing & availability via
CUMPAS
Contact your local Cummins Sales and
Service Parts Manager to help evaluate
your Cummins battery options.
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Power Service - Distribution
• Other products offered:➢ Diesel 911 (used to re-liquefy gelled fuel and de-ice
frozen fuel filters)
➢ Tank Hygiene and more
Pricing & availability via CUMPAS – use leading zero from the Power Service catalog to locate item(e.g., Part # 1128-04 from Power Service will be Cummins Part # 01128-04)
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Webasto - Distribution
• Cummins is a preferred distributor of
Webasto products with highly
competitive pricing
• Idle-reduction solutions:➢ Air heaters
➢ Precision bunk and engine temperature
management systems
➢ Coolant heaters
➢ Thermo King Tripac Kits
• Local Inventory access and availability
• Willing to work closely with you to tailor
stocking to your local customer needs
Webasto Item #, pricing & availability via CUMPAS
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2018 Growth Challenge Winners
Award # CUSTOMER_NAME State Attendee
1 CENTRAL TRUCK DIESEL INC WY Dallas Camp
2 Albuquerque Freightliner NM John Beyer
3 KENWORTH SALES COMPANY UT Paul Flores
4 MOTOR POWER EQUIPMENT CO MT Wayne Schneider
5 VELOCITY TRUCK CENTERS NV Mike Summerhays
6 SUMMIT TRUCK GROUP NM Todd Gohl
7 VELOCITY TRUCK CENTERS AZ Travis Mobley
8 TRANSPORT EQUIPMENT, INC. MT Nick Busby
9 WATSON TRUCK & SUPPLY NM Bruce Dew
10 PETERBILT OF WYOMING/ROCK WY Mike Culver
11 MCCANDLESS INTERNATIONAL NV Ken Pour
12 TRANSWEST TRUCKS CO Kyle Brophy
13 PETERBILT OF WYOMING WY Dennis Creel
14 Summit Truck Group - Farmington NM Jeff Nordstrum
15 RWC INTERNATIONAL LTD/P AZ Marc Cunningham
16 BOISE PETERBILT INC ID John Alderson
17 VELOCITY TRUCK CENTERS Sal Maldonado
18 Montana Peterbilt Steve Nelson
19 RUSH ENTERPRISES Robb Nixon
20 RUSH TRUCK CENTER - LUBBOCK Garrett Neumann55
▪ Congratulations to the 2018 winners!
▪ Over 600 lbs. of fish caught – Shipped and delivered
▪ 10 – “Sprint to the Finish” monthly challenge winners
▪ THANK YOU FOR YOUR BUSINESS
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2019 Dealer Sales Growth Program
▪ Program Dates: 11/1/2018 – 7/1/2019 (8 months)
▪ Travel Award Dates:
▪ October 1 – 4, 2019: Florida Key's Challenge (20)
▪ Sept. 29 – 4: Best-of-the-Best Bonus! (8)
▪ 5 Dealer Competition Groups 20 Dealer Winners!
▪ Sales Goals include:
▪ New, ReCon Components, ReCon Engines Goal
▪ Allied products Goal
▪ Monthly – Sprint to the Finish awards
▪ Best growth - Month / Month
▪ Pre-Requisites:
▪ Engine Certifications Met
▪ $100,000 yearly purchase minimum
▪ Parts Manager - Mobile App Downloaded
▪ RockyMt.GenuinePartsFirst.com
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575757
Current Parts Highlights
and Important Reminders
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ECMB Repair Process
ECMB Background: (new TSB to be released)▪ ECMB are Electronic Control Modules used from 1990 to 1994
▪ Used on N14, M11, and L10 Engines with CELECT fuel systems (NOT CELECT PLUS)
+1
ECMB Problem: ▪ The last new ECMB was manufactured in 1994
▪ For 23 years ReCon ECMBs were the only customer solution
▪ Remanufacturing can no longer support demand
▪ 50% of core received cannot be remanufactured
▪ High supply and demand gap
ECMB Repair Solution: ▪ Cummins has developed a Factory Repair Process.
▪ ECMBs that are repairable will be fixed and sent back to the
customers
▪ If an ECMB is unrepairable, the unrepaired ECMB will be sent back
to customer or; if available, a ReCon ECMB will be offered.
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Early Catalyst Failure Leads To Field
Action of 500,000 Cummins Diesel Engines▪ In voluntary cooperation with the EPA and the
California Air Resources Board, Cummins will voluntarily repair over 500,000 heavy duty diesel engines installed in big trucks, P & D trucks, and some buses between 2010 and 2015. While the engines met all applicable emissions standards when new, the catalysts used to clean up tailpipe emissions failed earlier than expected
▪ The recall affect about 60 engine families found in a wide range of vehicles, from big-rigs, to larger pickup trucks and some buses.
Source:cleantechnica.com – August 6, 2018
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Campaign/TRP Supply Chain Factors
1. There are more than 200 unique SCR item
numbers installed over these 500K engines.
2. Quantities forecast for these 200+ numbers are
highly variable.
3. No SCRs will be sent next day air freight under
this campaign - Leadtime (LT = 1 day)
4. Limited local branch stocking due to SCR size
(2-4 /pallet) – higher running SCR focus
5. Regional restocking Leadtime (LT) = 1-2 days
6. Replenishment of less common SCR will ship
outside the Western Zone and will carry LT 3-5
day.
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Your Actions Make a Difference
1. It’s critical that Parts & Service departments work with local customers to proactively schedule these non-mission disabling repairs.
2. It is highly recommended that units be scheduled at least 1 week in advance so research on the SCR item needed can be conducted (note: not all trucks covered by the campaign/TRP will need to have a replacement – The only sure way to know if a truck needs a replacement is to get the item number from the SCR on the vehicle)
3. Unscheduled evaluations risk the removal of the SCR only to find out that the required SCR is not locally available and will take 1-5 working days to be procured.
4. We urge your assistance to minimize the impact to our mutual customers. Both customer downtime and your warranty reimbursement are dependent on your expertise.
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SCR Field Action Reminders
1. Preliminary ESN Campaign/TRP research and SCR staging is essential to minimizing customer downtime.
2. Campaigns are performed proactively
• Check for any Campaigns when Engine number is added in Quick Serve
3. TRPs are triggered repairs and should only be performed if specific conditions are met
• The Customer complaint must meet the TRP guidelines
4. Campaign/TRP recognition and details are critical – Know what the Field action says
5. These field actions provides for retroactive coverage of repairs, including customer billable repairs, completed by Cummins authorized repair locations prior to the release date of this field action.
• All service providers filing claims for retroactive repairs should reference Warranty Memo M1825 for instructions.
6. Both customer downtime and your warranty reimbursement are dependent on your execution and expertise. . . Build a Plan . . . Apply the Plan . . . Execute the Plan
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Example - Field Event Qualifiers/Actions
Campaigns – Reference the official Campaign publication for complete
Instructions
1. C2052 - All ISX12 CM2250 and ISX15 CM2250 ENGINES RATED AT 525-600HP EMISSION
RECALL CAMPAIGN
• For ISX12 CM2250 and ISX15 CM2250 (Model Year 2010 thru 2012 Product) the SCR Part
Number must be compared with Attachment B. Any SCR Part Number found in the Affected Part
Number Column should be replaced. If the SCR Part Number is not found in the Affected Part
Number Column, file only the appropriate Admin Time, and Campaign Check (SRT 17-902).
2. C2053 - ISX12 CM2350 Emissions Recall Campaign
• For ISX12 CM2350 (Model Year 2013 Product) engines only, the SCR catalyst must be inspected
per TSB130099 prior to performing the campaign. If the SCR catalyst does not have the dimples
shown in the TSB, install a new SCR catalyst. If the SCR catalyst has the dimples shown in the
TSB, the SCR catalyst doesnot need to be replaced. File only the ADMIN Time (00-90x) and the
Campaign Check (17-902) to close the eligibility for the subject ESN.
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Example - Field Event Qualifiers/Actions
TRP – Reference the official TRP publication for complete Instructions
1. T2035 - ISX15 CM2250 SCR Replacement TRP for Fault Codes 3151 or 3582
In order to qualify for repair under this field action, an engine:
• will be covered Regardless of coverage status, and
• must show an OPEN status for this field action on QuickServe® Online, and
• must have an active count of fault code 3151 (SCR Catalyst System Missing) or 3582 (SCR Conversion Efficiency), or more than one inactive count within the last 250 engine operating hours, and
• must be less than 435,000 miles.
2. T2084 - ISB and ISL CM2350 SCR Replacement TRP
• For ISB and ISL CM2350 (Model Year 2013 thru 2014 Product) the SCR Part Number must be compared with Attachment B. Any SCR Part Number found in the Affected Part Number Column should be replaced. If the SCR Part Number is not found in the Affected Part Number Column, the engine is not eligible for this action.
NOTE: New SCRs delete the NH3 Sensor and move from a three (3) sensor to a NEW two (2) sensor configuration. This action provides coverage for a new wire harness. The installation of a new wire harness will require an ECM calibration update. Please refer to Attachment C for a table of ECM base codes and CPLs for your consideration
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Campaign C2062
▪ISX15/X15 CM2350 X101/X114B Fuel Line Safety Campaign - Impacts 34K Engines
▪ In order to qualify for repair under this field action, an engine:• will be covered Regardless of coverage status, and
• must show as OPEN on QuickServe® Online for this field action.
▪ Note : The ESN listings are attached for reference.
▪This Safety Campaign provides coverage and repair instructions for these engines, using anew steel fuel line kit part number 5473412 & 5579015.
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VG Turbos and
VG Actuators
Warranty Change
▪ Effective for VG turbo and VG actuator sales after October 1st 2018
• All turbos and actuator failures must be diagnosed on-engine
by an authorized or certified Cummins Service Provider.
• Suspected Over-the-counter exchanges will not receive
warranty coverage.
▪ Why:
• Reduce “No Trouble Found” NTF warranty returns.
• Provide customers with the right repair.
- Certified Channel has better diagnostic abilities and access to
published troubleshooting documents
• Keep customers in the Genuine repair channel.
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2019 Annual Pricing
And
Dealer Policies Review
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2019 Cummins Pricing Change Summary
▪ On 02 January 2019 new pricing for Cummins NewReCon service parts,
ReCon engines and Cummins Power Generation parts is effective.
▪ North American Prices for Cummins New & ReCon Parts/Engines will increase
an average of 4.6%.
▪ Cummins Power Generation (Onan) Parts pricing will see a 3.2% increase
▪ There are 2 primary drivers for price increases this year:
– Supplier cost increases: driven by general inflation, raw material costs, transportation, and tariffs
– Product enhancements: retroactively applying newer technology and design improvements to
previously released service parts
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2019 Dealer Policies
▪Electronic Order Discount –Discount applied immediately on invoice
–Orders must be placed via CUMPAS
–All order types are included (Stock, Emergency, Warranty)
–No minimum dollar amount required
–ReCon engines not included
–5% discount off dealer price on all electronic orders for all ISX, and 2007 and newer Midrange componentsD
ea
ler
Po
licie
s
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2019 Dealer Prepaid Freight Policy
▪Free Freight Program (no change)• Free freight from CRM’s primary support location
on Cummins New and ReCon parts for orders $1,750 or more (Excluding core charges)
• All other shipping criteria policies still apply
• Orders less than $1,750 and ReCon engines carry freight expense
• ReCon engines not included
De
ale
r P
olic
ies
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2019 Dealer Emergency Freight Policy▪ Emergency Order Freight (no change)
• Within Warranty
- Free freight when order is identified as “warranty order” at the time the order is placed on CUMPAS
- Requires – ESN and Control Number when ordering via CUMPAS
• Out of Warranty
- Shipments from Cummins Memphis Distribution Center (MDC) will carry a premium freight charge of 10% of the Part(s) value (Dealer Net), with a minimum charge of $30 and a maximum charge of $650 per line item.
• All other shipping policies still apply
De
ale
r P
olic
ies
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2019 Dealer Immediate Ship Program▪ The Immediate Ship Program applies to the following ReCon
products:
• ReCon Engines
• ReCon Long Blocks
• ReCon Short Blocks
• New Blocks
• New Block Kits
▪ Order Cut-off Time
• Customer Down Immediate Ship orders must be received at the MDC by 3:00 p.m. CST to be shipped the same day. Customer Down Orders received after 3:00 p.m. will be shipped the following day.
▪ Shipment via CRM designated LTL Carrier
▪ Shipping Price
Policy 2018
Immediate Shipment Program
-Midrange Engines, Long Blocks, Short Blocks,
Bare Blocks , & Block kits
$400
-HD Engines $600
De
ale
r P
olic
ies
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2019 Dealer Return Policy
Criteria Policy
Allowable Frequency of Returns Unlimited
Aggregate Amount for Returns 5% of previous year’s purchases
Offsetting Order None required
Restocking Fee 10% of current dealer pricing
Item Return threshold No return of items with an extended $ amount of under $5
Return Freight Dealer pays
Superseded/Obsolete Parts Allowed
Acceptance Criteria Parts should be in saleable condition and meet Cummins resale
guidelines
*Return Eligibility (the following
parts not allowed for return):
Chemicals, Engines (long Blocks), ECMs, literature, catalogs,
manuals, open/resealed kits/parts, paint, service tools/products,
software, installed (used) parts, incomplete assemblies or kits,
damaged parts, unidentified parts, made to order/customized
items. Rubber items (belts, o ‘rings, etc.) that are over 2 years old
(pack date required for return). Any parts prepped or installed are
not acceptable.
Other Criteria Parts should be returned to the location where the parts where
originally purchased
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ReviewPolicy 2019
Emergency Premium Rate 10%
Emergency Min / Order & Max / Line $30 / $650
Economy Premium Rate 8%
Economy Min / Order & Max / Line $20 / $500
Immediate Shipment Program
-Midrange Engines, Long Blocks, Short Blocks, Bare
Blocks , & Block kits
$400
-HD Engines $600
De
ale
r P
olic
ies
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Q+A
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Channel Management Topics & Support
77
Redefinin
g F
ield
Support
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Channel Managers
Jeremy Flesch
303-253-0851
MT, ND, ID, WY, CO
Jordan Chavez
385-279-0219
NV, AZ, NM, UT
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Cumpas 2.0 - Enhancements
▪ Allied products added – Batteries, Webasto, Power Service
▪ Orders over 100 lines, it is on the list still but no timeframe for this change as of now.
▪ Auto-Save feature for orders to help with possible timeouts. That order would be saved in your draft orders and you could easily go back to where you were - Q2.
▪ Order tracking improvements - Q2
▪ Real invoices available on Cumpas
• Current use "Cummins.distributor.com" possible - Q2/3
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Cumpas 2.0 - Features▪ Reports
• Part Price Extract
• Backorder log
- Parts escalation – Local Branch support
▪ Training Reference aids – References
▪ Order Status – Click Oder ID to refresh
▪ Update Contact info
• Phone
▪ Order history search capability
• Click to Open Additional Filters
• Partial part number or PO search
• Click “Search” (enter does not pull the search on the filter)
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Cumpas 2.0 - Features
▪ Value of Parts Template
▪ Upload parts consistently used for
▪ Service Procedures (i.e. - EGR cooler)
▪ Stock Orders
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▪ Parts template
▪ Download Requirements
▪ Save as CSV file
▪ Column “A” Part # only
▪ Column “B” Quantity only
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Dealer Reviews
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Redefinin
g F
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Support
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Dealer Certification Reviews▪ What we do when we visit
▪ WWSPS, QSOL and ProMotion users and contacts are updated
▪ PITT audit Random Tool review of 10-15 tools
▪ Communicate new products or system updates – CUMPAS 2.0, Guidanz, etc.
▪ Warranty claim review
▪ How long does it take?
▪ About 2.5 – 3 hours between the Parts and Service management
▪ What resources are needed to be allocated?
▪ Will need staff to pull random list of tools –30 min approximately
▪ Time with each part and service manager –1.5 hour
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Intellectual Property Overview
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What is a Patent?
A patent is an exclusive right granted for an invention, which is a product or a process that provides, in general, a
new way of doing something, or offers a new technical solution to a problem. To get a patent, technical information
about the invention must be disclosed to the public in a patent application.
What is a Copyright?
Copyright (or author’s right) is a legal term used to describe the rights that creators have over their literary and
artistic works. Works covered by copyright range from books, music, paintings, sculpture, and films, to computer
programs, databases, advertisements, maps, and technical drawings.
What is a Trademark?
A trademark is a sign capable of distinguishing the goods or services of one enterprise from those of other
enterprises. Trademarks are protected by intellectual property rights.
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Current Approach to Protect our IP
▪ Register trademarks globally
▪ CUMMINS
▪ HOLSET
▪ STAMFORD
▪ FLEETGUARD
▪ Cummins recently registered the “Cummins Red” on engines in the United States
▪ Globally monitor third party applications and oppose those that may be confusingly similar to our brands.
▪ Record with several customs offices to enable Cummins to review suspect shipments at the border.
▪ Restrict use of our brand by third parties.
▪ Ensure consistent use of our brand.
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Current Approach to Protect our IP
▪ Cummins addresses trademark infringements globally, including:
▪ On websites
▪ On signage
▪ In publications and literature
▪ In stores
▪ In domain name URLs
▪ Cummins enforces against counterfeit activity
▪ Legal determines the best course of action, including investigations, raids, cease and desist letters, or court action.
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▪ What to look for:
▪ False association / partnership with Cummins
▪ Incorrect logo usage
▪ How does this affect you?
▪ Lost revenue
▪ Misrepresentation
▪ If you see it report it – Signs, Cummins logo used by non-Cummins Authorized dealers on Business cards,
banners, vehicle wraps etc.
▪ Who to report concerns to:
▪ Cummins Channel Manager -
▪ Jeremy Flesch - 303-253-0821
▪ Jordan Chavez - 385-279-0219
▪ Cummins Local Branch management
▪ Cummins Territory Representative
▪ Dealer use of logos
▪ Brand Standards for Dealers -
▪ Engines, Parts and Power Generation Products (PDF)
▪ How to get to it – Cummins RM site, Channel Manager
Reporting Suspect Activity
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Thank you
Questions ??
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APPENDIX
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Idaho
▪ Bryan Austin
• Territory Account Executive
• Phone (208) 982-2916
PUBLIC
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Arizona & New Mexico
▪ Kristopher Young
• Dealer Account Executive
• Phone (480) 442-6781
▪ TBD
• Fleet Account Executive
• Phone (XXX) XXX-XXXX
PUBLIC
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Colorado & S-Wyoming
▪ Jeff Garberding
• Dealer Account Executive
• Phone (720) 212-9471
▪ Annette Vettraino
• Fleet Account Executive
• Phone (720) 325-4735
PUBLIC
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Nevada, S-Utah & NE-Arizona
▪ Nic Dobson
• Territory Account Executive
• Phone (702) 219-7518
PUBLIC
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Utah
▪ Ron Dimmick
• Dealer Account Executive
• Phone (385) 214-5452
▪ Rodney Nehring
• Fleet Account Executive
• Phone (801) 380-9176
PUBLIC