Who is Caterpillar Cat Dealers Worlds leading manufacturer
- Slides: 17
Who is Caterpillar? • Cat Dealers • World’s leading manufacturer of construction & • Cat Business Units mining equipment; diesel & natural gas engines; and industrial gas turbines. • Provider of financing, insurance, leasing, counter-trade and logistics • $20. 15 B sales in 2002, $5. 2 B exported from the U. S. • Expect sales growth to $30 B by the end of the decade
Who is Caterpillar? • Cat Dealers • Employs 68, 990 Worldwide • Cat Business Units • Manufacturing facilities in 21 countries. • Marketing headquarters in 11 countries. • Distributions Centers in 19 countries.
Our Dealers… • Cat the Dealers • Products distributed around globe by • Cat Business Units independent dealer network • 90, 000 people dedicated to the customer • 60 Dealers in the US and over 150 outside • 1840 branches / 1100 Rental Stores
Work Tools & Services • Our aim is to be the leader in providing work tools and related services that enhance Caterpillar machine performance. • Manufacture tools for construction, mining and forestry equipment. • Over 2, 500 end items sold in 2002. • Employ 450 in three facilities.
Customer Overview (Dealers) High Sales $ Medium Sales $ Low Sales $ Finning Toromon t Toromont Kramer Toromont NC Machinery Hewitt Atlantic NC Machinery w Butler Western States Pape' or th M ilt on Tractor & Equipment Fabco ut h Wester n States So Halton Ziegler Syracuse Michigan he rd Foley Tr Sh ep Thompson Mchry Johnson e rn ho wt Ha JA Riggs Rust Louisiana Holt of Texas Greg Poole Stowers Carolina Blanchard Yancey Warre n Cat Mustang ve Carter Fabick Empire le Walker Whayne Fabick Thompson Tractor Carlton Puckett Ring Power Ringhaver Kelly Our Demand HO Penn Foley G&R Alban h lis te Quinn Dean ac Martin Tr Wagner Holt of Ohio M Wheeler Al Altorfer Be Ohio r Cashman C Patten Nebraska Holt of Cal ckw it la nd Wyoming Peterson
Customer buying criteria… 3). Cost 2). Quality …Availability 1). Availability
Customer availability expectations… 1998 Today 1. Customers held 2 to 3 months 1. Customers hold limited invento of Work Tool inventory 2. Make-to-Stock Products • Order to ship in 0– 5 days • Order to ship in 3– 4 weeks 3. Make-to-Order Products • Order to ship in 3 -5 weeks • Order to ship in 7 -8 weeks
Customer availability expectations have changed… Why? 1998 Today 1. Dealers hold limited inventory 1. Dealers held 2 to 3 months Work Tool choices have increased 50% inventory 2. since ‘ 98 2. Make-to-Stock Dealers Products are not willing to invest in. Products inventory • Order to ship in 0– 5 days • Order in 3– 4 weeks fear to ofship obsolescence 3. Make-to-Order Products Competition isweeks tough…others • Order toare shipproviding in 3 -4 weeks q • Order to ship in 7 -8 availability.
Our Challenge…. External Create a Supply Chain 1). Meets Dealer / Customer availability expectations that 2). Meets Dealer / Customer price & quality expectat Internal 3). Meets increasing expectations of inventory turno 4). Meets our financial expectations…margin & prof
Product Supply 85% of Supply is from North America Overview Canada: 13% Europe: 5% Sweden: 1. 5% Japan: 1% U. K. : 6. 5% U. S. : 52% Mexico: 20% Over 2500 End Items Sold in Indonesia: 1%
High Sales $ • 3 Mfg Facilities • 2 Partners • 6 Key Suppliers • 3 Distribution Centers Medium Sales $ Low Sales $ Finning Toromo nt Toromont Kramer Toromont NC Machinery Hewit t Atlanti c NC Machinery w Butler Western States Pape' or th M ilt on Tractor & Equipment Fabco ut h Wester n States So Halton Ziegler Syracuse Michigan lis te Quinn Dean Sh ep Johnson e rn ho wt Ha JA Riggs Rust Louisiana Holt of Texas Greg Poole Stowers Carolina Blanchard Yancey Warre n Cat Mustang ve Carter Thompson Mchry Empire le Walker Fabick Thompson Tractor Carlton Puckett Ring Power Ringhaver Kelly Product Supply vs. Demand HO Penn Foley G&R Alban Whayne Fabick Foley Tr he rd ac Martin Tr Wagner Holt of Ohio M Wheeler Al Altorfer Be Ohio r Cashman h Nebraska Holt of Cal C Patten ckw it la nd Wyoming Peterson
Component Supply The “speed” of replenishment is critical for meeting Customer “demand” while minimizing Inventory investment. 200 Suppliers 8500 Part Numbers Quebec Kansas Florida
Understanding Our Customer’s “Demand” for Products 1). 18 Month Sales Plan • 19 Product Families 2). Supply Plan Do we have capacity to supply? Determine Forecast Split Make-to-Stock (MTS) vs. Make-to-Order (MTO) Schedule Products per the “new” Supply Plan Commit to: 1). Ordering Products & Materials 2). Manufacturing Products
Caterpillar Confidential: Yellow 2003 Forecast provided by Dealers & Reps. 110
MTS vs. MTO mix is discussed for each of 19 Product Families 110
Our Challenge…. External How are we doing? Create a Supply Chain 1). Meets Dealer / Customer availability expectations that 2). Meets Dealer / Customer price & quality expectat Internal 3). Meets increasing expectations of inventory turno 4). Meets our financial expectations…margin & prof
Key Elements of an effective Supply Chain Understanding the “playing field” What makes the customer tick? What Products, What Lead Times, What Price is the competition offering? Sales & Operations Planning Process Drives Capacity Planning Facilities, People, Supplier Commitments Essential for achieving Acceptable Lead Times Acceptable Levels of Inventory
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