Caterpillar 2013 Annual Report Download - page 35

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CATERPILLAR INC. 2013 YEAR IN REVIEW
33
When a Cat® 793 Mining Truck rolls off the assembly line in Decatur, Ill.,
for delivery in South America, a long and complex transportation journey
begins. And while the route will always be long – and involve a combina-
tion of trucks, trains and ocean containers to get the job done – Caterpillar
is now using an engineered and intelligent transportation network to
drive effi ciency, effectiveness and value for our customers.
“By enabling real-time visibility of product being delivered with processes
that shorten transit time and increase transport utilization, everyone
through the outbound value chain wins – Caterpillar, dealers and custom-
ers,” says Ed O’Neil, director of Integrated Logistics Services. “Driving
future success is about designing and delivering an engineered and
intelligent logistics network that delivers customer value.”
This engineered network is a strategic advantage and is already driving
signifi cant value for Cat® dealer Finning (South America). Before teaming
with Caterpillar’s outbound transportation team, it was a struggle to
accurately monitor and track shipments. This lack of visibility drove
several ineffi ciencies, including the inability to accurately schedule
staff and localize transportation routes at ports of entry.
“In some cases we had employees waiting for hours – and in some
cases days – to receive shipments due to lack of visibility. This was just
one of our opportunities,” said Cristian Chavez, vice president operational
excellence, Finning (Canada). “The project we (Caterpillar and Finning)
ran is a good example of the power and value of Caterpillar and its dealers.
Collaboration optimized our supply chain.”
The relationship between Caterpillar and Finning focused on improving
transportation routes from North America to Chile, Argentina, Bolivia
and Uruguay.
“You have to think about the people and processes needed. Results
won’t change if you don’t change the way you think and execute your
end-to-end processes” says Chavez. “We did, and the results were
really great.”
After working the project for seven months, the team delivered millions
of dollars in savings. Actions included:
• Actively monitoring shipments through a common technology
platform, thus enabling staff to know when product would arrive
at ports of entry, allowing them to prepare an accurate schedule
• Increasing velocity by enhancing transportation scheduling to
enable the best and quickest routes with faster arrival times
• Improving transportation volumes and lowering costs by combining
freight into fewer shipments
Chavez has since taken a new role at Finning (Canada), but the journey
continues. His new team is actively collaborating with Caterpillar to
replicate an optimized transportation network at Finning (Canada).
“A transportation network, that enables visibility and velocity, is just
simply good business,” says Chavez. “Finning is proof that no matter
where you do business, an engineered network delivers a competitive
advantage and customer value.”
The Power of an Engineered
and Intelligent Network
CATERPILLAR ENTERPRISE SYSTEM GROUP