Late in 2020, Cummins began the process of updating and harmonizing the Shipping and Handling approach for the North American supply chain. The intent of the process update is to provide a consistent customer experience across North America, as well as establish the pathway to providing transparent, up front, shipping and handling costs at the time of quoting and ordering. In addition, these changes are also a prerequisite to future supply chain and delivery automation enhancements. After implementation, through the constructive feedback received it was clear that more development was needed to align with the goals and business objectives of all our customers.
Accordingly, we have made further adjustments to our shipping and handling approach by parts order type to align more appropriately with the marketplace. For the full detailed Shipping and Handling approach, please see the updated Dealer Policy Manual, specifically sections 1 and 2.
The guiding principles of the 2021 approach are:
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Free Shipping and Handling on stock orders greater than $1,000
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Standardized S&H cost on emergency and daily orders
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Harmonization of line item minimum/maximum levels
The 2021 updated shipping and handling policy was implemented on Sunday February 7th. In addition, Cummins is currently experiencing supply constraints due to ongoing challenges related to COVID impacts and precautions. To accommodate those special circumstances, the customer down shipping and handling rate will be temporarily reduced through at least June 2021. We are constantly evaluating the Shipping and Handling approach to improve the experience for all customers, additional enhancements will be implemented throughout 2021.
Cummins remains committed to correcting the unintended negative impacts to our dealers and customers. We are working through a process for crediting a portion of the freight charges from the initial changes on October 26th, 2020 through the implementation of the new approach on February 7th, 2021. The credit process is estimated to be completed by the end of March 2021. For questions regarding the credit process, contact your local Cummins account representative.
Cummins is greatly appreciative for your partnership, as well as the ongoing feedback we receive from our dealer partners. If you have additional questions or feedback regarding the new freight standardization update, please connect with your local Cummins Account Executive.