Caterpillar 2013 Annual Report Download - page 21

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CATERPILLAR INC. 2013 YEAR IN REVIEW
19
CUSTOMER & DEALER SUPPORT
Caterpillar Can
Win in China with
Remanufacturing
Services
This past October marked a signifi cant milestone for Caterpillar’s
Remanufacturing business. We received offi cial approval and support
from the Chinese government to import true Reman Finished Goods (RFG).
“RFG imports allow us to be more competitive and win more business
in China. Most importantly, they allow us to serve more customers, and
when our customers win, we all win,” says Reman General Manager
Frank Li.
This change enables Caterpillar to sell more machines by providing our
customers in China the complete Cat® value package and a broader range
of options. Our dealers see value in RFG imports too, as they create
more business opportunities and choices to serve the customer. One
Cat dealer in China, Lei Shing Hong (LSH) Machinery, has seen positive
results in sales since the introduction of RFG importation.
“We have a lot of loyal customers in our territory that always request
Reman as their fi rst preferred choice because Reman is as good as new,
but priced at a fraction of new,” shares LSH Engine Division Marketing
General Manager Allan Wang. “Our customers have Cat® legacy engines
still in operation, and they rely heavily on Reman product offerings for
cost-effective repairs. These customers were just as excited as we
were to see that Caterpillar is now able to import RFG.”
“We can offer more options for customers with Cat Reman import
constraints removed,” says LSH Machine Division Product Support
General Manager Stanley Sheung.
RFG is also benefi cial from a service operations perspective.
“In the past, because Reman offerings were limited, we had to pick and
choose what Reman products would be available for our repair strategy
for both workshop and fi eld repairs,” says LSH Engine Division Parts and
Service Operations General Manager Fan Baochun. “However, with
Cat RFG imports, we are able to now rely on the availability of the full range
of Cat Reman parts such as fuel injectors, cylinder heads, cylinder
liner packs, crankshafts, turbochargers, etc., for use in our repairs.
We can now utilize our technicians for more value-added jobs and have
increased our engine rebuild shop throughput and decreased workshop
and fi eld service job turnaround time, resulting in a solid increase of
our capacity and capability.“