Cummins Reduces Accounts Receivables Past Due by 20% with Cantilever Readiness Engine®; Improves Cash Flow

Transforms Accounts Receivable Process to Deliver High-Quality Customer Service; Cuts Problem Resolution Cycle Time while Increasing Customer Satisfaction

WEST LAFAYETTE, IN -- November 13, 2002 -- Cantilever Technologies, the pioneer and industry leader in decision management technology, announced that Cummins Inc., a Fortune 500 producer of medium-heavy commercial diesel engines, has reduced its past due" accounts receivables (AR) by over 20%. Improvement of Cummins AR past dues" from 7% of total AR to 5.4% occurred within 90 days of implementation and deployment of Cantilevers Readiness Engine (RE) decision management software.

The Readiness Engine software allows Cummins AR analysts to more effectively and efficiently manage the AR process by reordering their activities. By transforming its AR management process and applying best practices, Cummins reduced the amount of unproductive account management time from 40% of an average day to 14%, an improvement of almost 300%. In addition, the new, streamlined processes nearly doubled the time spent with customer contact and issue reconciliation, thereby accelerating cash flow and increasing customer satisfaction while reducing costs.

The strategic objective was to lower the AR cost of capital to Cummins by improving the collection rate, cycle time, and account-handling volume for each AR analyst," explains Tom Linebarger, CFO at Cummins. The typical AR analyst was spending 40% of their work time in account management activities. Within days of deploying the Readiness Engine and its decision management capabilities, AR analysts were resolving client issues faster and increasing collection activities. The increased focus on collection and reconciliation helped to reduce AR balances outstanding, and the increased customer contact time has resulted in greater customer satisfaction."

We are extremely pleased to be working with such a world-class manufacturing company as Cummins," said Bill Russell, vice president of business development at Cantilever. The Readiness Engine delivered new innovative capabilities to Cummins AR analysts and enabled significant improvement in the business process. The RE is now being deployed for dispute management and sales support. A new financial services application in Cummins Accounts Payable is also now being developed. Whether you're battling competition or costs, companies are realizing that decision management technology can provide substantial economic benefit to the firm and ultimately the customer. We look forward to extending our relationship with Cummins while continuing to drive value to manufacturers as they seek to adopt decision management strategies."

Decision management technology is set to fill a void in a companys digital business processes," explains Julie Goonewardene, Cantilever president and CEO. Rather than add-ons to present day software systems, decision management technology is designed and built to support companies newest business challenges, including speed and customer satisfaction. Decision management involves the right people, processes and information at the right time and does so in a way that is directly related to a discrete business problem. The competitive landscape in which manufacturers operate dictates constant innovation in all areas to ensure continued success. Clearly, manufacturing organizations would do well to embrace next generation concepts such as decision management."

The Cantilever Readiness Engine is groundbreaking decision-management technology for the complex enterprise. Heralded for allowing real-time communication between cross-functional groups within a company, the Readiness Engine organizes data from independent sources into a shared information base. Patented technology allows it to detect and address specific issues or problems that require a decision to move an initiative forward. The technology easily integrates and works with existing systems, and brings information and people together in a meaningful way that generates faster, better decisions.

About Cummins Inc.

A global power leader, Cummins Inc. is a corporation of complementary business units that design, manufacture, distribute, and service electrical power generation systems, engines and related technologies, including fuel systems, controls, air handling, filtration, and emissions solutions. Headquartered in Columbus, Indiana, Cummins serves its customers through more than 500 company-owned and independent distributor locations in 131 countries and territories.

About Cantilever Technologies

Cantilever Technologies is the pioneer and industry leader in real-time decision management solutions, making it faster, easier and more cost-effective for manufacturers to analyze, understand and implement problem resolution around customers and supplier transactions and demands. Founded in 1999, Cantilever is headquartered in the Purdue Technology Center at the Purdue Research Park in West Lafayette, Indiana.

Sources:
Julie Goonewardene
(765) 775-4555
jgoonewardene@cantilevertech.com

Bill Russell
(317) 439-3706
brussell@cantilevertech.com

Related Web sites:
Cantilever Technologies LLC: http://www.cantilevertech.com

Cummins, Inc.: http://www.cummins.com

Purdue Research Park: http://www.adpc.purdue.edu/PRF