Caterpillar 2015 Annual Report Download - page 57

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57
2015 YEAR IN REVIEW
BUSINESS REVIEW
CONSTRUCTION INDUSTRIES
What are some examples of efficiency gains in your business?
We use constraints to make great things happen with fewer resources. Take the Last Mile Freight Program: We
got together with our dealers and instead of getting multiple groups involved with our products’ outbound freight,
Caterpillar handles that alone, and it’s driven a lot of cost out of the business.
Another example is how the Excavation Division is using the New Product Introduction process to emphasize
modularity and common platforms in their Next Generation excavators. This takes costs out of the product in
both the new equipment side and the aftermarket support side, lowering both the cost of our product and the
cost of providing a service to our customers.
Why is big data and innovation so important to Caterpillar at this time in our history?
Data and technology will be core to serving our customers in the future. Equipment and technology are becoming
table stakes, but using that technology to add value and make our customers more successful will be the key to
who wins and who loses. Caterpillar does this through innovations Cat® GRADE with Cat® Slope Assist, VisionLink®,
Payload and all the other great offerings under Cat® Connect – that’s where data and technology add value for
our customers.
TOM PELLETTE
Group President, Construction Industries
Construction Industries is built to support customers using machinery in infrastructure and
building construction applications. The majority of machine sales in this segment are made
in the heavy and general construction, rental, quarry and aggregates markets and mining.
Responsibilities include business strategy, product design, product management and develop-
ment, manufacturing, marketing and sales, and product support. The product portfolio includes
backhoe loaders; compact, small and medium wheel loaders; small and medium track-type
tractors; skid steer loaders; multi-terrain loaders; compact track loaders; small, medium and
large track excavators; mini excavators; wheel excavators; motor graders; select work tools;
pipelayers; track-type loaders; mid-tier soil compactors; telehandlers and related parts.
A Conversation With