Caterpillar 2013 Annual Report Download - page 32

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CATERPILLAR INC. 2013 YEAR IN REVIEW
30
CATERPILLAR ENTERPRISE SYSTEM GROUP
A Value Chain that Creates
Competitive Advantage
Caterpillar is a proven innovator, but breakthrough advances do not end
at product design. With the creation of the Caterpillar Enterprise System
Group (CESG) in 2013, Caterpillar is driving an innovative focus toward
order-to-delivery. To better serve customers from the moment they
place an order to the day it is delivered in the fi eld, we are engineering
an innovative, end-to-end Lean value chain. The new structure and
processes are designed to deliver a competitively advantaged company.
The Caterpillar Enterprise System Group encompasses functional areas
of excellence, including Global Purchasing, Integrated Logistics Services,
Caterpillar Production System (CPS), Lean Offi ce and Process Transfor-
mation. Aligning these critical processes and support groups improves
our manufacturing and supply chain capabilities worldwide.
Focused on the Customer
Our customers know exactly what they want – availability and reliability –
and this strategic initiative delivers both. A more responsive company
is created when we deploy an end-to-end supply chain engineered
based on customer expectations. Shortened product lead times mean
our business can deliver an unmatched level of agility and responsive-
ness across the markets and segments we serve. Meanwhile, a focus
on Lean in every aspect of our business eliminates ineffi ciencies and
fuels an improvement beyond our current, historical best quality.
Results Driven
A more responsive company also creates value by optimizing the cash
conversion cycle. The faster our products reach the market, the sooner
both Caterpillar and our customers see a profi t. And the benefi ts do not
end there. Increased effi ciencies are a fundamental result of increased
responsiveness to customers. In addition, when we meet more customer
demands, we have the opportunity to further increase our market share
and generate total shareholder return, no matter the cycle.