Caterpillar 2015 Annual Report Download - page 31

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31
2015 YEAR IN REVIEW
Nearly 40 percent of U.S. trade to and from Asia passes through West Coast ports in California. Keeping the flow
of goods through these ports moving swiftly and efficiently is a priority for logistics and procurement networks
across countless companies, including Caterpillar.
When a three-month labor dispute at one of these ports resulted in significant terminal congestion, the
expertise of Caterpillar’s logistics team translated into millions of dollars in savings, as well as ensuring
that our supply flow remained resilient.
When business operations eventually returned to normal, many companies were left dealing with severe financial
impact. While Caterpillar experienced added costs and some slowing in our materials flow, these were a fraction
of the impact on other companies. That’s how we know our Global Supply Network can deliver under pressure –
not merely reacting to fluctuations in logistics, but truly taking charge of and managing our supply network.
Our staying power throughout the slowdown was due, in very large part, to
the collaboration and flexibility of our Global Supply Network. Using a winning
combination of procurement and logistics data and innovative thinking, a clearer
inventory picture emerged to help streamline and divert shipments.
“We were able to see not only the best ports, but also the best terminals in
those ports,” explained Global Supply Network Director of Logistics Scott
Shepherd, “so we could react faster and accurately re-route shipments. This
allowed us to move material more quickly, while limiting added costs and
overall supply disruption.”
EFFICIENCY
A GLOBAL SUPPLY
NETWORK THAT DELIVERS
UNDER PRESSURE
1909 MANUFACTURING began
in the Peoria area – an advantageous
location in the Midwest that HOLT
AND BEST recognized as having the
ability to reach the entire United States.