Case Study: Cummins achieves global lease centralization and significant cost savings with LeaseAccelerator

Implementing a Best-In-Class global equipment leasing program

Cummins, a global power leader, faced a fragmented, decentralized equipment leasing program with no single source of truth—managed in spreadsheets across multiple ERPs—resulting in poor lease-vs-buy decisions, high end-of-term costs, evergreen payments and forced buyouts. To fix this, Cummins selected LeaseAccelerator’s Equipment Lease Management SaaS to centralize leases, enforce controls and standardize decision-making across finance, procurement, IT and shared services.

LeaseAccelerator configured the application to Cummins’ hierarchy and GL structure, led a global lease-collection effort and deployed its Lease vs. Buy tools, Asset Request Form (ARF) and Global Lessor Network for competitive sourcing. The program captured over 7,400 leases (2,200 in the first six months), pruned active leases to ~3,500 covering 56,000 assets in 31 countries, processed ~8,000 ARFs in 38 countries and ran ~9,000 leases (~$800M original equipment value) through the new process. Measurable results with LeaseAccelerator include an average 8% cost savings per lease from competitive bidding, evergreen payments falling from 18% to 8.5%, and a >50% reduction in unplanned spend, plus readiness for the new lease accounting standard.

Cummins

Carol Pennington

Director, Treasury Projects