Caterpillar 2012 Annual Report Download - page 18

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Features 18
2012 Year in Review
ROCK SOLID
When Caterpillar acquired mining equipment company Bucyrus
in 2011, there was a need to align their distribution capabilities
within Caterpillar’s dealer-oriented distribution model. Through
a series of divestitures, Caterpillar is engaging dealers in the
product distribution and product support aspects of the business.
“The primary focus of the divestitures is to improve service to end-users
by leveraging the proven distribution capabilities we have with our
dealers,” explained Dave Hoffman, chief financial officer for Resource
Industries with responsibility for leading the divestiture team. By the
end of 2012, Caterpillar had successfully completed 13 sale transactions
to dealerships accounting for a significant portion of the Bucyrus
distribution business. This is in line with Caterpillar’s plan to engage
dealers in Bucyrus opportunities as quickly as possible.
“Our dealers have a long history of exceptional service to mining
customers around the world, and they know what is needed in local
markets and individual mines. As service to our customers improves,
our dealers will be rewarded and ultimately Caterpillar will be rewarded
with higher customer satisfaction and sales,” said Hoffman.
Each transition is unique and requires professional handling with a sharp
focus on quality. In addition, the territories do not directly overlap with
Cat® dealers, so the divestiture process ensures a smooth transition
and uninterrupted service to customers.
“From a 20,000-foot perspective, it looks pretty simple to insert
the dealers into the value chain, but it’s all the details that make
it challenging,” said Hoffman. “We are focused on doing it right
the first time and have a dedicated team in place to ensure a
smooth transition.”
To date, the transitions have been successful with limited disruption
to Caterpillar customers. Clive Thomson, chief executive officer of
Barloworld, Cat dealer in South Africa and Botswana, said, “This
acquisition is perfectly aligned with the group’s growth strategy. It
builds on our existing strengths and will enhance our leading position
in the mining industry by significantly expanding the range of equipment
solutions we are able to provide to customers operating across
southern Africa.”
Rock Solid PlanRock Solid Plan
DEALERS GET IN
THE MINING GAME
Aligning distribution in our mining business.