Académique Documents
Professionnel Documents
Culture Documents
106 64 39 373
Company facilities Dealer main stores FG Wilson, MaK, Perkins & Solar distributors Cat dealer rental outlets
Asia-Pacific
Latin America
19 36 63 93 Company facilities Dealer main stores FG Wilson, MaK, Perkins & Solar distributors Cat dealer rental outlets 38 45 78 83 Company facilities 70 Dealer main stores 258 FG Wilson, MaK, Perkins & Solar distributors 720 Cat dealer rental outlets 90 Company facilities Dealer main stores FG Wilson, MaK, Perkins & Solar distributors Cat dealer rental outlets
19 facilities on 6 continents 10M sq. ft. 550,000 P/Ns serviced Highly integrated systems 24x7 coverage
2,360 employees 3,500 suppliers 50+M lines shipped/year 875,000 receipts/year 210,000 dealer calls/year
Vision
Be the global leader in customer value
Mission
We provide best value to customers We grow profitably We develop and reward people We encourage social responsibility
People
India
- Acquired engine company - Manufacturing Cat backhoe loaders
Logistics
Logistics for product sourcing in 2003 Caterpillar Logistics China Limited: Joint venture to
pursue China opportunities signed in 2004
Parts facility by second quarter 2005 Discussions with numerous automotive companies
Execution Execution
Order Management Customer Services Order Entry
Order Allocation / Processing
Distribution
Manufacturing Logistics SubAssembly & Kitting Sequencing Line-side Delivery Postpone To Build
Warehousing Crossdocking
Product Marking / Labeling
Freight Forwarding
Performance Management
Results
More than 40 percent of Cat employees are involved: 15,000 projects, 2,600 black belts, 208 master black belts, 17,900 green belts In 2003, 6 Sigma results far exceeded the companys aggressive goals and was the key enabler of significant improvement in core operating costs
Suppliers
CAT
Dealers
Suppliers
CAT
Dealers
Inventory Availability
2003
2004
2005
2006
Business Case
Poor shipping container space utilization inflating quantity of ocean containers shipped
Business Case
In a collapsing semi-conductor market, reduce the total cost of logistics by 20%
By M_Part
Percent
50
50
Parts
R Chart by M_Operator
0.0010
DHL TEE
By M_Operator
100
Sample Range
50
0.0000
Sample Mean
Results
Diverted air shipments to ocean Consolidated to increase load density Recycled client containers Implemented a higher value air service for freight to one country
Results
Presented facility relocation Diverted road shipments to air Consolidated shipments Rationalized packing suppliers
M_Operator DHL
TEE
M_Operator*M_Part Interaction
100
M_Operator
DHL TEE
50
Average
50
0 0
Parts
Geography USA
Function IS
Business Case
Client facility achieving lower productivity than other Cat Logistics operations
Business Case
Reduce the cost of electronic data interchange between the client and Cat by 25%
Results
Sorted pick tags by zone Installed conveyor in sort area Implemented TRACKS in pack area Matched labor to work volumes
Staging Cart
Results
Changed from mailbox to FTP Utilized NDM instead of mailbox
Staging Cart
Shipping Auditor Responsibilities: 1) Check part descriptions & qty 2) Match pick tags with p ackwith # on cart 3) Manage pick completion status for each order 4) Control wave completion process by chasing pickers that need to bring "de livieries" to carts...
Staging Cart
Staging Cart
Issue Work Issue Work Orders Orders Sequence Sequence (1-2 days) (1-2 days) Assembly Assembly Order Order Changes Changes Supplier Material Delivery Pull
Expedite Expedite
Higher Velocity
Weeks
less assets
Months
18 16 14 12 10 8 6 4 2 0
8 7
11.5 8.4
6 5
7.5 6.5 4.5 3 **
4.9
4.7
4 3 2 1 0
1996
1999
2002
2003
2004
2006
2008
1996
1999
2002
2003
2004
2006
2008
Production Stores
PP inventory
Dealer Inventory
Expected
Conclusion
Methods of Differentiation 1960s - Marketing 1970s - Manufacturing 1980s - Quality 1990s - Customer Service 2000s - Supply Chain
Supply chain is the next frontier to unlock shareholder value Supply chain activities must be linked to achievement of business goals
Thank You!