SITPRO recently visited Cummins to evaluate the benefits to a company of using SITPRO-validated standard forms for international trade. Cummins is a global company producing engines and related technologies, including fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems. Cummins' plant in Daventry, Northamptonshire, produces more than 4,000 large power engines every year for export, which means shipping around 90 engines every week. These engines are shipped out using SITPRO's Standard Shipping Notes (SSN) and Export Cargo Shipping Instructions (ECSI).
SITPRO worked closely with Cummins to validate the layout of the forms when Cummins first became a direct licensee. Now that the forms are programmed into Cummins’ computer system, information input to the system automatically formats correctly to print the completed SSN and ECSI. Cummins has also found that using the SITPRO standard forms minimises errors and the forms are always accepted by the carriers and service providers with no need for further instructions.
SITPRO's evaluation of Cummins was undertaken by Jung-ui Sul, a Trainee Solicitor seconded to SITPRO by Clifford Chance for 3 months. Jung-ui also worked on ASEAL (see page 3) and explored the scope for trade facilitation in the services sector.
If you might be interested in seconding staff to SITPRO, please contact us.
With a wealth of experience in international trade, Cummins pursues best practice in using the SSN and ECSI by ensuring that there is as little room for error as possible. This is achieved by programming prompts and settings into the system to assist the person in typing in the required information, rather than relying on the person to remember all the data requirements. Cummins staff find it easy to produce SITPRO forms and only need on-the-job training to use the system. Cummins intends to improve the practice further by upgrading the system to make it simpler for staff to input data. The layout of the SITPRO forms will not be affected by the upgrade, and Cummins can continue to produce the validated forms without re-programming the forms.
At Cummins, international standards are applied not only in the aligned forms for trade but also in the sales contracts, which are always negotiated using Incoterms. All in all, a happy customer that understands and practices good trade facilitation!
For information on becoming a SITPRO validated licensee, please contact Siobhan Aarons at siobhan.aarons@sitpro.org.uk.
Return to SITPRO News: Issue 59, Winter 2006/2007
