We are shaping a new era for Caterpillar in which we not only manufacturing machines and engines, but also deliver value-added solutions that take our customer relationships to an entirely new level
  Caterpillar is one of the world’s leading manufacturers of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The company principally operates through its three product segments: Construction industries, Resource industries and Energy & Transportation. Besides, it also provides financing and related services through its financial products segment.

Caterpillar construction industries segment 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. 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; pipe layers; track-type loaders; mid-tier soil compactors; telehandlers and related parts.

Creating ‘successful’ customers
Caterpillar’s business strategy is to make its customers more successful, said Vivek Vanmeeganathan, Country Head and Managing Director, Caterpillar India. He adds, “We are building strong relationships and are committed to provide our customers innovative and best-in-class products, solutions, and maintenance support to help them be successful and make progress possible in India.”

Caterpillar works with its dealer network every day around the world to ensure that success – at construction sites and mining quarries and power plants. “Our goal is to speed the delivery of customer support by being an agile organisation positioned to respond efficiently and effectively to customer needs. Because when our customers win, we win,” Vivek adds.

As the global population grows and greater urbanisation takes place, the need for infrastructure will grow too. Caterpillar believes that the road to progress begins with a road. According to Vivek, “Construction is at the heart of Caterpillar, and construction industries are right in the middle of building roads, bridges, ports and airports that allow mankind to continue to improve lives around the world.”

Every day, Caterpillar machines that are “Built in India” for India and also for the rest of the world are hard at work building India’s infrastructure, ports, highways and helping power India into the future.

Innovations
Keeping with the demand from customers to make construction equipment cost and fuel efficient, safe and reliable, there are numerous innovations which have been taking place globally. For example, data and technology would be core to serving customers in the future. Equipment and technologies are becoming table stakes, but using that technology to add value and make customers more successful will be the key to who wins and who loses, feels Vivek. He adds, “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.”

For 90 years, Caterpillar has delivered breakthrough innovation inside its machines and engines. Today, that innovation is increasingly happening outside the machine. “We are going ‘beyond the yellow iron,’ harnessing the power of big data to offer our customers insights that decrease operating costs, increase uptime and maximise profitability. In the process, we’re shaping a new era for Caterpillar in which we not only manufacturing machines and engines, but also deliver value-added solutions that take our customer relationships to an entirely new level,” Vivek elucidates.

For an example, near the end of his shift, a mine truck operator glances up at the dashboard mounted in his cab. The simple display shows that he exceeded several production targets. However, according to the data, there’s room for improvement. Payloads can be increased and load times reduced. That’s valuable information with the potential to increase efficiency, productivity and asset utilisation – all of which contribute to the bottom line. But technology and data have little worth until the value is extracted and transformed into actionable tasks. Caterpillar is uniquely positioned to do just that.

“We are forging ahead into areas of unprecedented collaboration with our customers and dealers to develop the capabilities and processes that put technology and data to work, with bottom-line results for our customers, dealers and Caterpillar,” Vivek explains.

With Job Site Solutions, Caterpillar has made it easier for customers to collect raw data from their machines, and the company provides the technology to interpret that data into tangible information that means something to them. The next step is to analyse the data to better understand the customers’ unique challenges and opportunities. Simple, real-time data can show them what went wrong (or right) on the last run, how they’re doing against their production goals, whether they have the right number of trucks on the route or need to reduce wait times – nearly every aspect of their operations is factored in.

Vivek said, “Once we’ve established a baseline, and it is clear what needs to be accomplished, Caterpillar becomes a trusted, hands-on partner in our customers’ production and fleet management. Importantly, their costs for these solutions are based solely on the actual value received from the improvements we help them implement. It’s about pay for performance.”

Through these solutions, Caterpillar is delivering on the performance and value premium of Cat products and extended enterprise. Talking on the value addition the company offers, he adds, “Customers gain increased throughput and can invest more in their businesses. It’s a way in which Caterpillar, our dealers and our customers can realise and share gains together, helping improve efficiency and profitability, as well as sustainable, long-term relationships.”

Enhanced procurement practices
Commenting on how far Caterpillar India’s procurement practices add value to its final products, Vivek says, “We view our suppliers as an essential link within our value chain and an essential part of our commitment to quality. We look for suppliers who demonstrate strong values and commit to the ethical principles outlined in our Supplier Code of Conduct. We expect suppliers to comply with the sound business practices we embrace, follow the law and conduct activities in a manner that respects human rights.”

Caterpillar has a risk management plan that outlines the company’s response to certain risks identified in its supply network. “To ensure our impacted suppliers understand our expectations, we request that they respond to our supply network survey or complete a training program. As issues arise, members of our senior management are apprised and suppliers are expected to implement corrective action plans for mitigation or remediation,” Vivek outlines.

Caterpillar continues to expand the Assurance of Supply Centre (ASC) to support its enterprise strategy to manage a world-class supply network. The ASC is a network knowledge service organisation and data platform that captures and transforms complex, supply network data from dozens of systems into a suite of simple, but powerful business tools that can be used for every day decisions. Today, thousands of global, internal and external users can monitor supply network performance, drill down to root causes, visualise facility inventory real-time and monitor risks and defects with a few clicks on their tablets or desktops. The centralised visibility to data in the ASC has streamlined communication between Caterpillar and its suppliers, resulting in a dramatic improvement to supplier performance and quality, as well as working relationships. ASC tools have also improved collaboration between work groups, such as logistics and procurement, allowing teams to quickly work together to respond to risks and disruptions (labour disputes, natural disasters, etc.), thereby reducing risk for Caterpillar and its suppliers.

New ASC capabilities in network modelling, including nine patent-pending algorithms, make it possible to quickly identify optimal network designs that account for projected geopolitical or economic changes, and then evaluate pros and cons prior to implementation. This technology enables an agile supply network that delivers at the right time and right cost, while reducing waste caused by trial and error or delayed decision making.

Caterpillar’s commitment to ‘Make in India’
Caterpillar has been present in India for over 4 decades, establishing multiple manufacturing facilities here. We currently have five manufacturing facilities in India located in Tamil Nadu and Maharashtra, producing a wide range of equipment, engines, and components which are not only sold in India but also cater to our customers in other countries in Asia, Africa, Middle East, etc.

With over 3 million products at work around the world, Caterpillar’s global reach and presence is unmatched in the industry. The company serves in more than 180 countries around the globe with more than 300 products. “Decisions to be present in a country are made not just with the market size or the growth potential in a particular country but with the perspective and objective of supporting our global customers in a fast, highly efficient and cost effective manner,” avers Vivek.