Winner of the Treasury & Risk Alexander Hamilton Awards for Technology Excellence
Learn the benefits Cummins achieved by centralizing Equipment Lease Management using standardized processes, controls, and systems:
Reduced Cost of Equipment Leases
Through the automated RFP process, over 73 competitive sourcing events have been completed in 26 countries. The new competitive model yields with an average cost of savings 8% per lease.
Better Lease Portfolio Management
Evergreen payments as a percentage of total annual payments (excluding termination fees) dropped from 18 percent at program inception to an average of 8.5 percent in subsequent years. The “unplanned/unintended” portion of spend dropped by more than half.
Ready for New Lease Accounting Standard
Cummins has also removed the uncertainty of transitioning to the new lease accounting standard. The software will make the appropriate calculations for the current standard and the new standard, enabling Cummins to generate parallel reporting.