Who is Caterpillar? Cat Dealers Cat Business Units World’s leading manufacturer of construction &...
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Transcript of Who is Caterpillar? Cat Dealers Cat Business Units World’s leading manufacturer of construction &...
Who is Caterpillar?
• Cat Dealers• Cat Business Units
• World’s leading manufacturer of construction & mining equipment; diesel & natural gas engines; and industrial gas turbines.
• Provider of financing, insurance, leasing, counter-trade and logistics
• $20.15B sales in 2002, $5.2B exported from the U.S.
• Expect sales growth to $30B by the end of the decade
Who is Caterpillar?
• Cat Dealers• Cat Business Units
• Employs 68,990 Worldwide• Manufacturing facilities in 21 countries.• Marketing headquarters in 11 countries.• Distributions Centers in 19 countries.
• Cat Dealers• Cat Business Units
• Products distributed around the globe by independent dealer network
• 90,000 people dedicated to the customer• 60 Dealers in the US and over 150 outside
• 1840 branches / 1100 Rental Stores
Our Dealers…
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.
Our Demand
Sout
hwor
th
Milt
on
SyracuseHO Penn
Foley
Bec
kwi
th
Cleve
lan
d G & R
Alban
Michigan
Stowers
Mac
Allist
er Holt of Ohio
CarterWalker
Ohio
Whayne
Blanchard
CarolinaGregPoole
Fabick
Fabco
Patten
Altorfer
Thompson Mchry
Thompson Tractor
Yancey
Fabick
Carlton
RingPower
Ringhaver
Kelly
Shep
herd
JA Riggs
PuckettLouisiana
Mustang
Warren Cat
Holt ofTexas
DeanMartin Tr
Foley Tr
Ziegler
Butler
Nebraska
Tractor & Equipment
Wyoming
Wagner
NC Machinery
Halton
Pape' Western States
Western States
Peterson
Holt of Cal
Cashman
Rust
Wheeler
Empire
Quinn
Johnson
Haw
thorne
Finning
NC Machinery
Kramer
Toromont
Hewitt
Toromont
Toromont
Atlantic
Customer Overview(Dealers) Medium Sales $
Low Sales $
High Sales $
Customer availability expectations…
19981. Customers held 2 to 3 months
of Work Tool inventory
2. Make-to-Stock Products• Order to ship in 3–4 weeks
3. Make-to-Order Products• Order to ship in 7-8 weeks
Today1. Customers hold limited inventory
2. Make-to-Stock Products• Order to ship in 0–5 days
3. Make-to-Order Products• Order to ship in 3-5 weeks
19981. Dealers held 2 to 3 months
inventory
2. Make-to-Stock Products• Order to ship in 3–4 weeks
3. Make-to-Order Products• Order to ship in 7-8 weeks
Today1. Dealers hold limited inventory
2. Make-to-Stock Products• Order to ship in 0–5 days
3. Make-to-Order Products• Order to ship in 3-4 weeks
Work Tool choices have increased 50% since ‘98
Dealers are not willing to invest in inventory forfear of obsolescence
Competition is tough…others are providing quickavailability.
Customer availability expectations have changed…Why?
1). Meets Dealer / Customer availability expectations
3). Meets increasing expectations of inventory turnover
2). Meets Dealer / Customer price & quality expectations
Our Challenge….
Create a Supply Chain that
4). Meets our financial expectations…margin & profit
External
Internal
85% of Supply isfrom North America
Product SupplyOverview
Canada: 13%
U.S.: 52%
Mexico: 20%
U.K.: 6.5%
Europe: 5%Sweden: 1.5%
Japan: 1%
Indonesia: 1%
Over 2500 End Items Sold in 2002
Product Supply vs. Demand
Sout
hwor
th
Milt
on
SyracuseHO Penn
Foley
Bec
kwi
th
Cleve
lan
d G & R
Alban
Michigan
Stowers
Mac
Allist
er Holt of Ohio
CarterWalker
Ohio
Whayne
Blanchard
CarolinaGregPoole
Fabick
Fabco
Patten
Altorfer
Thompson Mchry
Thompson Tractor
Yancey
Fabick
Carlton
RingPower
Ringhaver
Kelly
Shep
herd
JA Riggs
PuckettLouisiana
Mustang
Warren Cat
Holt ofTexas
DeanMartin Tr
Foley Tr
Ziegler
Butler
Nebraska
Tractor & Equipment
Wyoming
Wagner
NC Machinery
Halton
Pape' Western States
Western States
Peterson
Holt of Cal
Cashman
Rust
Wheeler
Empire
Quinn
Johnson
Haw
thorne
Finning
NC Machinery
Kramer
Toromont
Hewitt
Toromont
Toromont
Atlantic
Medium Sales $
Low Sales $
High Sales $• 3 Mfg Facilities• 2 Partners• 6 Key Suppliers• 3 Distribution Centers
Florida
Quebec
Kansas
200 Suppliers8500 Part Numbers
Component Supply The “speed” of replenishmentis critical for meeting
Customer “demand” whileminimizing Inventory
investment.
Resource Planning Model
Plans
Feedback Volume and Rates
Products
Materials & Parts
Hours
Sales & Operations Planning
Mix Planning
Master Production Scheduling
Materials Planning
Detailed Capacity Planning
Rough-cut Capacity Planning
Marketing Companies' Forecasts
Purchasing Execution Production Execution
Strategic Plans
Schedule Products perthe “new” Supply Plan
Commit to:1). Ordering Products & Materials2). Manufacturing Products
Understanding Our Customer’s “Demand” for Products
1). 18 Month Sales Plan•19 Product Families
2). Supply Plan
Do we have capacityto supply?
Determine Forecast SplitMake-to-Stock (MTS) vs. Make-to-Order (MTO)
Caterpillar Confidential: YellowCaterpillar Confidential: Yellow
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
S&OP
Forecast provided by
Dealers & Reps.
110
2003 Forecast
1). Meets Dealer / Customer availability expectations
3). Meets increasing expectations of inventory turnover
2). Meets Dealer / Customer price & quality expectations
Our Challenge….
Create a Supply Chain that
4). Meets our financial expectations…margin & profit
External
Internal
How are we doing?
How are we doing?
Understanding the “playing field”
Key Elements of an effective Supply Chain
Drives Capacity PlanningFacilities, People, Supplier Commitments
What makes the customer tick? What Products, What Lead Times, What Price
Essential for achieving Acceptable Lead TimesAcceptable Levels of Inventory
Sales & Operations Planning Process
What is the competition offering?