Cummins Names New Head of Global Supply Chain

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Engine maker promotes Bonnie Fetch as shortages limit heavy-duty truck production

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Ms Fetch will assume her new role on February 1, replacing Cummins vice chairman Tony Satterthwaite, who took over interim last year after Peter Anderson retired, the company said.

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Equipment makers are striving to meet strong demand for heavy-duty trucks as production backlogs continue to grow due to shortages in semiconductors and other components.

Jennifer Rumsey, Cummins President and Chief Operating Officer, said in a news release, Ms. Fetch, whose manufacturing includes the global distribution of Caterpillar’s aftermarket parts after three decades, “is the right person for this role as we address supply chain challenges.” Let’s continue to navigate.”

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Cummins also lowered its full-year 2021 revenue outlook in November to 20% annual growth compared to its previous guidance of 24%, and said supply-chain constraints such as rising material and logistics costs for its business But continues to gain weight.

The company faces a “about $100 million-a-quarter supply chain cost headwind” in 2021, Jack Kinzler, executive director of investor relations for Cummins, said at a December 2 investor conference call. Supply-chain constraints are “how far an industry can go from a production standpoint,” he said.

North American orders for Class 8 trucks, the big rigs used to transport long-distance freight, rose 139% in December compared to the previous month, but were down 55% from last year’s levels, according to preliminary data from transportation research firm FTR . It said that manufacturers are delaying in placing orders due to uncertain supply-chain conditions.

“The current order volume still undercuts the tremendous demand for new trucks,” Don Acke, FTR’s vice president of commercial vehicles, said in a statement. “Carriers have cargo to haul and funds available for new trucks, but OEMs can’t manufacture enough.”

Write Lydia O’Neal at [email protected]

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