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April 2015

ACROSS THE TABLE UPDATE


As the new Group President for Customer & Dealer Support (C&DS), I’m excited to
lead the Across the Table initiative. Across the Table was called out explicitly as one
of our key initiatives in our Enterprise Strategy. The work we are doing to transform
our distribution model is important and will lay the foundation for future success for
Caterpillar, our dealers, and most importantly, our customers. We must deliver on the
plan and do it with an extreme sense of urgency.
This newsletter contains the latest information on Across the Table and provides an
update on the progress of each of the work streams. The teams are working
diligently across the enterprise and in partnership with our dealers to meet our goals.
We’ve made great progress, but there is much work yet to be done.
2018 is just around the corner -- we have to remain diligent and increase our velocity
A message from
of execution! Rob Charter
Thank you for your continued support. Caterpillar Group President –
Customer & Dealer Support

GLOBAL TEAM
2014 Year In
Working Together for Mutual Success
2014 YEAR IN REVIEW

Review Features
Across the Table
Rob Charter Discusses Across the Table The 2014 Caterpillar
at the Leadership Summit Year in Review was
released on March 12
Rob Charter provided an Across the Table and features a question
update to the attendees at the 2015 and answer segment
Leadership Summit in Atlanta on (both video and print)
February 4. Rob discussed the progress of with former Group
each work stream and outlined plans as we President Stu Levenick discussing Across the Table.
head toward 2018. As part of the update, Rob The Year In Review also contains a compelling video
was joined on stage by three of our dealer featuring several of our Across the Table Dealer Advisory
principals who have been heavily involved Group dealers discussing the importance of this initiative.
in the Across the Table initiative - Issam al
Bahar (Al-Bahar), Pascal Guillemain (Bergerat Monnoyeur), and Jeff Whiteman Click here to view the 2015 Year in Review. Select the
(Empire Cat). These dealers presented their unique perspective on Across the Segments and Corporate Divisions link at the top and scroll
Table and participated in an open and honest panel discussion covering what’s down to Customer & Dealer Support.
gone well and what challenges we face as we work to achieve our 2018 goals.

A video of Rob’s presentation and the panel discussion with the dealers is
available at: https://dealer.cat.com/AcrossTheTable.
Enabled Solutions and Networked ERP. The event w
better understating of Across the Table work. Feedback
Participants were curious to learn more about Across t
from deployment with dealers to specific progress of v
available to share insights on the range of Across th
excellent forum for employees to gain a deeper under
Across the Table has for Caterpillar and our Dealers.
ACROSS THE TABLE | UPDATE
Below are some pictures from the gallery walk and quiz

Tullamarine Across the Table Gallery Walk

As part of an ongoing employee education series, Caterpillar Tullamarine in


Melbourne, Australia, hosted an Across the Table gallery walk on February 27.
A cross-functional team from Caterpillar Tullamarine discussed a variety of topics
including a high-level strategy overview and updates on work stream projects like
Parts Logistics Transformation, Service Excellence, Dealer Growth and Profitability,
Technology Enabled Solutions and Networked ERP. The event was well attended
and the attendees achieved a better understanding of the Across the Table work
from project leaders.

The gallery walk format was an excellent forum for employees to gain a deeper
understanding and appreciation of the importance Across the Table has for
Caterpillar and our dealers. Click here to see more photos from the event. ACROSS
THE TA
BLE

Caterpillar and Cat Dealers are working together to create and


AC OS
implement our Across the Table strategy. It comprises multiple
work streams focused around four key objectives to transform
THE TR
“Partnerin
S
A BLE
g for our Fu
ture, Insp
our collective distribution capability. ired by our Pa
st”

OBJECTIVES GAME-CHANGING CAPABILITIES WORK STREAMS


Executed in close partnership with our Dealers

Strengthening the Caterpillar and


• Across the Table
Dealer Distribution Model

Enhancing Customer Focus • The Playbook – Driving Execution in Serving the Entire Portfolio

• Global Parts Pricing Strategy


Achieving Superior Economics • Parts Logistics Transformation
for Caterpillar and the Dealer • Service Excellence
• Rental and Used Equipment

Seizing Opportunities / • Distribution Aspects of Technology-Enabled Solutions


Mitigating Risks • eBusiness Transformation
• Networked ERP/Data Integration

Economic Foundation • Dealer Growth & Profitability Plan

2
The following sections provide
an update on the progress of the
project work streams that make
up Across the Table.

Enhancing Customer Focus

PLAYBOOK
Project Team Lead: Brian Tomsovic, Arnaud Lamassiaude, Whye Chee Peng

GROWTH PLANS – VISION


Growth plans drive dealers and Caterpillar to prioritize growth opportunities in each territory to achieve leadership across the portfolio.
Growth plans aid the execution of the seed-grow-harvest business model.

The plans include agreement to the key initiatives, such as Foundational Capability improvements or Game-Changing Capabilities Work
Streams, to achieve our aligned 2018 targets. Each plan must capitalize on a deeper understanding of our customer needs, ensure the delivery
of our brand promise, solidify the advantages of our distribution channel, and achieve profitable growth.

Major Ongoing Work Stream Initiatives Significant Dealer Interactions


• Monthly or Quarterly Governance Processes implemented or • District Manager administers the portfolio of plans specific to
refined in each dealer’s territory. each dealer’s territory.
• Prioritization of Foundational Capability needs required to support • Aligned 2018 Targets established.
this Growth. • Prioritized Growth Plans either in governance or entering
• Inclusion of Game-Changing Capabilities Work Stream Initiatives governance in 2015/2016.
into Growth Plans.
• Accountability for the Dealer and Caterpillar Responsibilities Project Implementation Timeline
within these Growth Plans. • Dealer, District, and Industries prioritize Growth Plans needed in a
• Identification of Best Practices and transfer of Best Practices dealer’s territory.
among dealers. • Plans are developed on an agreed-to timeline.
• Update to Foundational Capabilities for deployment later in 2015. • Governance begins as soon as practical, with most plans
beginning January 1, 2015.
Major Milestones/Accomplishments
• Aligned 2018 Targets established for PINS, POPS and E&T
Revenue by all dealers globally.
• Consistent, global terminology and templates for the Major and
Standard Growth Plans for all Machine, Energy & Transportation,
Rental and Used, and Product Support Growth Plans.

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ACROSS THE TABLE | UPDATE

Achieving Superior Economics


for Caterpillar and the Dealer

GLOBAL PARTS PRICING


Project Team Lead: John Jasinski & Larissa Campbell

VISION
To strengthen the Caterpillar-Dealer model and increase customer focus by strategically enhancing global pricing decisions.

Major Ongoing Work Stream Initiatives Significant Dealer Interactions


• Conduct Price Maturity Index (PMI) assessments in US, Germany, • Work on PZ UK/Ireland/Iceland is underway. Initial SCP scenarios
UK and Singapore price zones. Completion of all US dealer PMIs are being refined.
are targeted for July 2015. • Work on PZ Netherlands and PZ Germany/Austria/Switzerland is
• Continue to gather, analyze, interpret and model dealer underway. Data and expert input collected.
transaction data. • Completed Price Zone USA Early Engagement dealer project
• Improve the quality and quantity of pricing competitive intelligence kick-off meetings in February 2015.
and lost sales reporting. • Conducting data pass analysis meetings with Price Zone USA
• Refresh suggested consumer prices (SCP) and trade discounts by Early Engagement dealers in 1Q 2015.
price zone (PZ). • PZ Singapore engagement is underway. Dealer transaction data is
• Simplify sales variance administration. being collected.
• On-site PMI assessments completed with Australian dealers in
Major Milestones/Accomplishments March 2015.
• Price Zone France recommendations implemented February 2015.
• Nineteen PMIs completed during 1Q 2015 (EAME: 1, ADSD: 12, Project Implementation Timeline
APD: 6). • PZ representing 40% of WW revenue implemented by
• GPPS Foundational Projects (corporate accounts, sales variance, January 2016.
second level distributor and competitive intelligence) launched in • 6 0 PMIs completed by year-end 2015.
January 2015. • F oundational Project recommendations complete by July 2015.

OPERATIONAL DEFINITIONS:
• Suggested Consumer Price (SCP): Suggested price to the consumer/customer.
• Price Zone (PZ): A grouping of dealers and/or countries that share the same suggested consumer price. Price zones are determined
using a series of factors including (but not limited to) country size, market similarity, geography and currency. Caterpillar will balance
flexibility vs manageability based on these types of criteria and dealer input.
• PMI (Pricing Maturity Index): A qualitative assessment of current dealer pricing practices and capabilities.

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ACROSS THE TABLE | UPDATE

Achieving Superior Economics


for Caterpillar and the Dealer

PARTS LOGISTICS TRANSFORMATION


Project Team Lead: Barb Hodel & Jan Goos

VISION
Leverage one integrated network to deliver consistent premium parts availability, leading the industry in cost efficiency and asset utilization.
Measure of Customer success will be On Time In Full.

Major Ongoing Work Stream Initiatives • PIC pilot readiness underway with J.A. Riggs and Cavpower
• Network Transformation & Collaboration (Caterpillar network targeting late 2Q 2015 go-live.
investments, as well as collaborative network studies with • Range of dealer visits across all regions to introduce in Parts
select dealers) Logistics program and customer value proposition.
• Parts Inventory Collaboration (PIC) • Collaborative network studies with Barloworld, Mantrac, Delmas,
– Dealer data sharing Hastings Deering and Finning Canada.
– Policies incenting collaboration • Surveyed select dealers to gather voice of customer input for OTIF.
– PIC dealer deployment
• On Time In Full Project Implementation Timeline
• PIC pilot implementation – J.A. Riggs and Cavpower – by late
Major Milestones/Accomplishments 2Q 2015; targeting 5 additional by year end 2015; full deployment
• Queensland, Australia DC (distribution center) preparation on track by 2017
for 2Q 2015 go-live, including SPM. • Dealer Data Sharing: 50% of WW demand captured by year
• Morton DC innovation program on track. end 2015
• JA Riggs (Arkansas, US) and Cavpower (Australia) engaged for • Parts Policy changes ready for 2016 onwards deployment
late 2Q 2015 go-live on PIC.
• PIC system user acceptance testing on track.
• Detailed change management program underway for successful (continued on next page)
PIC deployment.
• End-to-end customer availability reporting in production for
dealers who share data. This new web-based reporting tool offers
two new metrics: CCPA and OTIF.
• Parts Policy review on track for staggered go-live starting 2016.
Significant Dealer Interactions
• Daily dealer data sharing now in place with 26 dealers of which
15 are sharing OTIF required data. Twenty additional dealers with
committed start dates.

OPERATIONAL DEFINITIONS:
• On Time In Full (OTIF): Percentage of parts orders sourced and delivered complete by need-by-date/time as defined by the customer.
• Customer Centric Parts Availability (CCPA): Percentage of customer ordered line items sourced to the dealership and/or in-region
Caterpillar warehouses.
• Parts Inventory Collaboration (PIC): Auto replenishment of dealer parts inventories based on mutually agreed stocking plan. Key
enabler for OTIF: optimizes parts availability at dealer branches for same/next day need-by orders.
• Service Parts Management (SPM): SAP systems deployed across Caterpillar parts network to ensure foundational, world class supply
chain excellence.

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ACROSS THE TABLE | UPDATE

Achieving Superior Economics


for Caterpillar and the Dealer

PARTS LOGISTICS TRANSFORMATION – continued

Parts Inventory Collaboration (PIC) – “DAY IN THE LIFE”

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ACROSS THE TABLE | UPDATE

Achieving Superior Economics


for Caterpillar and the Dealer

SERVICE EXCELLENCE
Project Team Lead: Cameron Ferguson & Bob Paternoga

VISION
Cat Dealers are the customers preferred service providers by being aligned to a global strategy which centers on delivering a consistent and
exceptional experience through operational excellence and enhanced customer value.

Major Ongoing Work Stream Initiatives Significant Dealer Interactions


• Service Training Machine Systems Competencies Project— • Completed Component Rebuild Center (CRC) Standard Work
All competencies for hydraulics and powertrain Project Pilots, as well as two waves of Continuous Improvement
assessments identified. (CI) for dealer training.
• Pilot assessment on Proportional Priority Pressure • Service Excellence: Five dealers are partnering with CSS Cat
Compensating (PPPC) executed and used as pilot for future U on joint translation projects. To date, this resulted in 105
guide for building assessments. completed Technician & Sales Effectiveness Process course /
Product Knowledge Assessments translations published on Dealer
Major Milestones/Accomplishments Performance Center (DPC) in support of Across the Table and
• Service Excellence Performance: 63 translations in progress, most of which would not have been
– Launched Service Excellence Performance January 1. done otherwise.
– Launched the revised Service Excellence Performance • Global dealer participation in Dealer Service Management
Guidebook, Addendum A: Service Attributes, Addendum Certificate Program between August 2014 and November 2015,
B: Sequel Extract Queries Specification and Addendum C: including 61 participants in Americas, 16 participants in EAME
Right First Time—Service Process in February. The most and 17 participants in APD.
significant changes are within the revised Service Excellence • Dealer Advisory Group will attend a face-to-face meeting
Performance Guidebook including: May 26-29 in East Peoria, IL to collectively review progress to
- All Service Metrics and Service Attributes will roll up date, identify opportunities and clearly define the milestones and
annually to Service Performance on the Global Dealer deliverables necessary to achieve our 2018 goal.
Scorecard with a maximum score of 6.25 points earned.
- Labor DCAL is now also referred to as Percent of Labor Project Implementation Timeline
Sales (POLS). • Service Excellence Performance: To measure dealer service
- Addendum C: Right First Time--Service Process has excellence performance consistently, dealers will submit Service
been added. Metrics and Service Attributes quarterly (April 1-20, July 1-20,
- Within the Transactional Survey section, the Customer October 1-20, 2015 and January 1-20, 2016).
Satisfaction Customer Loyalty Requirement Minimum has • Service Assessment Global Assessment Application (GAA)
been added. conducted training for Service Operations Reps, including EAME in
– Announced a four minute video targeted to Dealers: Service November 2014 and ADSD last month. APD will be scheduled in
Excellence Performance video. the future as well as additional training as needed.
– Developed a centralized Service Metrics Input database
(go live – April 1), which will enable Caterpillar Service To learn more about Service Excellence, visit:
Operations Reps to access and submit nine of the 16 Service • https://dealer.cat.com/ServiceExcellence
Metrics on behalf of the dealers. • https://dealer.cat.com/ServiceExcellencePerformance
• Launched the new Service Operations website on dealer.cat.com:
https://dealer.cat.com/cda/layout?m=20062&x=7.
• Announced the new look and feel of dealer.cat.com/
ServiceExcellence, including updated versions of the
white paper, Addendum A: Service Attributes, Addendum B:
Critical Success Factors, Addendum C: Dealer Repair and
Cat Reman Strategy.

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ACROSS THE TABLE | UPDATE

Achieving Superior Economics


for Caterpillar and the Dealer

RENTAL & USED EQUIPMENT STRATEGY


Project Team Lead: Andrew Ryan & Kurt Tisdale

VISION
Rental & Used feeds the Seed, Grow, Harvest business model. We pursue rental and used in our quest to profitably serve customers, build
population, and harvest downstream opportunities.

Major Ongoing Work Stream Initiatives Significant Dealer Interactions


• Improve dealer data exchange, beginning with DBS through the • DDSW testing of data transfer from DBS with two ADSD pilot
Dealer Data Staging Warehouse (DDSW) dealers through 2nd quarter.
• Develop margin contribution reporting system and rollout • Rental Strategy Review & 2015 Execution plan presented at the
globally by 2017 ADSD Rental Summit
• Deployment of Rental Operations Certification to dealers covering • Rental Dealer Management Simulation course is confirmed
80% of the global rental opportunity by year end. for ADSD in May, and commitment from Zahid Tractor to lead/host
• Winner’s Profile metric cleansing is in process, and conclusions the first course in EAME, with APD dealer course to follow
are being drawn based on dealer quartiles. in Q3/4.
• Launched review of Used Umbrella Strategy, including role of • Ten dealer used equipment certification reviews completed in
CUESI and IronPlanet/CAS auction activity. APD and ADSD so far in 2015. Together with EAME, the total
• Cat Certified Used pilot program launching 2Q 2015 with number of dealers with certified Used operations in 2014/2015
2 ADSD-N dealers. stands at 33.
•U  sed operations dealer training completed at one dealer.
Major Milestones/Accomplishments
• Rental Management System (RMS) Technical Assessment Project Implementation Timeline
complete for nominated ERP providers and two specialized • 2 Q 2015 – Rental Management System recommendation
rental software providers in North America. Strategic review is • 3 Q 2015 – Establish Used Equipment Winner’s Profile
now underway and project recommendations are expected Advisory Group
mid-year 2015. • 3 Q 2015 – Deploy margin contribution modeling tool in
• DDSW rolled out for two pilot dealers - scheduled to be in Europe & South America
production by the end of June 2015. • 3 Q 2015 – Establish Rental Operations Certification covering
• Margin Contribution process training delivered to the Cat Field 80% of the global opportunity
Teams in North America. Dealer communication underway. Model • 4 Q 2015 – Used Equipment Operations Certification completed
development for Europe and South America is scheduled for 2Q at dealers covering 50% of global opportunity
and 3Q 2015.
• Rental Certification baselines established for dealers covering
95% of EAME rental opportunity, 75% of APD rental opportunity,
50% ADSD-South rental opportunity, and 25% ADSD-North
rental opportunity.
• Metrics and best practices relating to the Rental Winner’s Profile
have been obtained and consolidated for over 125 dealers
globally. Best Practice documentation scheduled for 3Q 2015.
• Historical Cat Used/New Dollar ratios calculated, distributed to
Districts and cascaded to individual dealers.
• Three-day joint Cat Auction Services/IronPlanet live and online
auction held in Florida in February.

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ACROSS THE TABLE | UPDATE

Seizing Opportunities /
Mitigating Risks

TECHNOLOGY ENABLED SOLUTIONS (TES)


Project Team Lead: Dawn Carson & Tom Bucklar

VISION
Customers will be more successful working with Cat Dealers than anyone else as technology enabled solutions become more prominent and
continue to drive change in our industries. Cat Dealers will be recognized as industry leaders in delivering technology driven value, leveraging
distribution partners where applicable. Cat, Cat Dealers, and channel partners will have clear roles and responsibilities that drives innovation,
consistency, and a best in class customer experience globally.

Major Ongoing Work Stream Initiatives reviewed, EAME pilot with PON, APD focus on Australia.
• Approve a TES Brand Architecture, including structure, naming • Cat inspect version 2.0 for dealers has been launched on Apple
and migration. and Android platforms.
• Improve technology distribution by completing Cat Dealer/SITECH • ECA monitor at 38,735 machines; ECA protect at 1,487 assets.
strategy & agreements. • EMSolutions adopted by Mining and Energy & Transportation.
• Develop TES digital platform & mobility, including • Commercialization workshops scheduled for EAME and APD.
reporting capabilities. • 2020 channel optimization team finalized.
• Develop and deploy TES technologies & tools. Tools include
EM Customer Portal & Mobile Access, ECA Monitor, ECA Protect, Significant Dealer Interactions
Cat Inspect and S•O•S. • Global SITECH meeting in Barcelona in February 2015.
• Build out Productivity, Safety & Sustainability TES verticals to • Commercialization workshops scheduled for EAME and APD.
arrive at Connected Services. • India Condition Monitoring Boot Camp planned.
• Globally deploy, promote & train on EMSolutions, plus expand into
Mining and Energy & Transportation. Project Implementation Timeline
• Deliver Dealer TES business model – cap&cap, financials, • EMSolutions rollout and dealer endorsement continues
organization and strategy. (through 2015)
• Develop channel optimization for 1M+ units – The objective • EMSolutions global promotion launch (through 2015)
is to develop a 2020 strategy for connected services, • ECA Monitor, S•O•S Services Manager, Cat Inspect roll out
technology & systems. • 2Q 2015 - Pilot Next Gen Product Link launch to Construction
• Provide data management strategy – ownership, privacy & • Productivity & Safety Solutions finalized by Year End 2015
consent policies, processes & communications. • 2Q-3Q 2015 - E&T and Mining launching to Phase 1 dealers

Major Milestones/Accomplishments To learn more about Equipment Management and Cat


• Team formed and working on future brand architecture for TES. EMSolutions,visit cat.com/emsolutions. Click here to view an
• Cat Dealer/SITECH agreements - ADSD is well underway with overview video that the team produced to share with our dealers.
seven Technology Distribution Agreements complete and 26 being

OPERATIONAL DEFINITIONS:
• EMSolutions: a portfolio of technology enabled services focused on delivering equipment management solutions for construction
customers worldwide.
• Equipment Care Advisor (ECA): Proactive process of evaluating equipment and application data inputs to provide maintenance,
component replacement, application and repair recommendations.
• Cat ECA Monitor: a dashboard view that integrates and correlates condition monitoring data.
• Cat ECA Protect: an offering utilizing advanced analytics, Cat and Dealer global knowledge sharing, recommendation management, and
value tracking.
• S•O•SSM Services: a proprietary process designed to turn fluids analysis data into valuable information. This information is used to manage
equipment and reduce operating costs.
• Cat Inspect: A mobile application (available on iOS and Apple) that contains specific machine inspection forms based on operating manuals.
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ACROSS THE TABLE | UPDATE

Seizing Opportunities /
Mitigating Risks

eBUSINESS TRANSFORMATION
Project Team Lead: Sanjeev Addala & Jeff Bowman

VISION
Deliver the Cat Brand Promise by building a premium, consistent customer experience to powerfully extend our physical footprint.

Major Ongoing Work Stream Initiatives Overall Experience


Purchase Experience •D  riving increased use of Zift, Marketing Automation tool for
• For Cat.com dealers.
– Developing enterprise lead nurturing approach to address • P reparing for 2015 eBiz Blitz in Americas (completed in APD and
leads not covered by business unit nurturing efforts because EAME already).
74% of attributable sales from online leads come from non- – Reinforcing and deploying standard work to dealers and DSDs
prioritized leads that need nurturing. in regional meeting.
– Enhancing site catalog with even better model-to-model and –D  ialoging and gaining voice of the dealer and DSD to gain
competitive spec comparisons. local insights.
– Continuing to enhance site catalog with improved model-to-
Major Milestones/Accomplishments
model and competitive spec comparisons.
Purchase Experience
• For Catused.com
• C at.com globalized in 8 regions, in 17 languages all with lead
– Replatforming on a more dynamic updated technology to
generation incorporated as of July 2014.
improve functionality and customer experience.
• C at.com campaign capability developed and integrated into the
• For CatRentalStore.com
site for GCI pilot (underway).
– Integrating rental store experience into Cat.com to continue
• C at.com leads reached ~ 2,500 per month. This number is steadily
efforts to create a seamless customer experience.
rising as the use of the web in our industry and our offering on the
– Retaining CatRentalStore.com.
web continues to be more compelling. This aligns with increasing
• Overall
use of the web in the general marketplace as well. 56% of leads
– Refining the Purchase Experience 3-year roadmap to drive
from outside of NA. 39% of all traffic from a mobile device. This
future action.
reflects the growing importance of the mobile channel as a means
Support Experience to look up information (learn), look for products and services
• For online parts purchasing (shop), purchase (buy) and look for instructions and insights to fix
– Refining Parts.cat.com plan to improve the or amend products (care).
customer experience. • C at.com reached 1.58M visitors in September. This is a significant
– Finalizing approach and timing detail to replace PartStore jump versus other month averages.
with Parts.cat.com as early as end of 2016. • C hina is now the #1 visiting country to Cat.com demonstrating that
• For Cat Integrated Procurement customers are multilingual as well as multichannel.
– Deploying Cat IP with focus on mining. • C at.com achieved $406M attributable sales (Dec-June). 15% were
– Initiating deployments at Kiewit, one of our new customers.
largest customers. •A  chieved $1.4B attributable sales across all online campaigns
• For Cat Customer Portal efforts through Eloqua (marketing automation system).
– Socializing customer portal strategy globally via eBiz Blitz to This includes the $406M specifically through Cat.com.
gain VOD.
– Creating and implementing customer portal pilots globally.
• Overall (continued on next page)
– Refining the Support Experience 3-year roadmap to drive
future action.

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ACROSS THE TABLE | UPDATE

eBUSINESS TRANSFORMATION – continued

Support Experience Significant Dealer Interactions


• Achieved total online part sales Support Experience
– Increase of 11% vs. last year • Parts.cat.com meetings with dealers in ADSD to introduce the
– 15% of total part sales development release plan to improve customer experience and
• Grew Cat Integrated Procurement functionality on the site.
– Increased dollars 25% vs. last year • Parts.cat.com VOD teams created to define requirements and
– Achieved nearly 1,000 connections marketing plans.
– Renamed PartStore Integrated Procurement to Cat Integrated • Partnering with other groups such as Do It Myself and Cat Auction
Procurement to reflect the ultimate shift from PartStore to Services to promote online sales on Parts.cat.com at local events.
Parts.cat.com. Examples: Participated in Do It Myself conference and sponsored a
• For Social Media booth at a Cat Auction Services event to promote Parts.cat.com.
– Reached over 2.4M followers across our social sites (Twitter,
Project Implementation Timeline
FaceBook,Google, etc.).
Support Experience
– Deployed Cat Dealer Social Media Playbook at the APD
• Over 350 active projects.
and EAME eBiz Blitz dealer meetings, now available on
• Parts.cat.com major release plan begins by end of May.
DealerConnect which includes “Metrics That Matter” for
• Scale compliant pay, ship and tax processes for Parts.cat.com.
social media acitivity.
• Implement Esri for improved dealer locator.
• For Mobile
• Pilot Registration Services.
– Found that 35% of visits to our sites are now from
• Continue to focus Cat IP on mining.
mobile devices.
• Continue to learn from Customer Portal pilots and use customer
– Refined mobile strategy (to be integrated into Purchase and
and dealer insights to drive production.
Experience roadmaps).
Overall Experience
Overall Experience
• Integrating recently defined mobility strategy into the Purchase
• Implemented 2015 eBiz Blitz in APD and EAME
and Support Roadmaps by May.
– Gained voice of DSD, dealer and local insights.
– Deployed standard work associated with lead generation,
To learn more about eBusiness Transformation visit
social media, SEO and SEM, online content and more.
https://dealer.cat.com/eBusiness.

OPERATIONAL DEFINITIONS:
• Cat Integrated Procurement (Cat IP): allows customers to order parts online using their business or procurement system, such as SAP,
J.D. Edwards, Oracle, Microsoft, etc.
• Zift: is a Marketing Automation platform used by global dealers to market to their customers via online with a consistent corporate
message in a more efficient manner.
• Esri: Geographic information system mapping software. Tool used to improve the functionality of our dealer locator.

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ACROSS THE TABLE | UPDATE

Seizing Opportunities /
Mitigating Risks

NETWORKED ERP/DATA INTEGRATION


Project Team Lead: Rich Baer, Sanjeev Addala, Mark Freeman & Sean Maher

VISION
Create a common environment that allows Caterpillar and the Dealer network to consolidate and share data with greater speed and
efficiency, lower cost, and more rapid replication that enables the extended enterprise to deliver superior customer experiences and service
to all segments.

Major Ongoing Work Stream Initiatives Significant Dealer Interactions


• Continue to load dealer data into Dealer Data Staging • Since January, seven more dealers have loaded data into the
Warehouse (DDSW). DDSW. Sixteen are in process to load data into the DDSW.
• Continue to update Caterpillar DDSW Extract, Transform, Load • Through April, 22 dealers are scheduled to redeploy data
(ETL) tool and redeploy at dealerships that are already sending into the DDSW.
data into the DDSW. More than 50 changes have been identified • E AME hosted a workshop February 16-20, 2015 for 16 dealers
for the next release. that had not yet loaded data into DDSW. Three dealers (Mantrac,
• Developing an additional five Rental data domains – in support of Vosto-Tech and Zeppelin) that are already sending data into
that Across the Table initiative. DDSW shared their experiences in developing / selecting a
• ETL solutions being developed for SAP/Accenture, MS/XAPT and process and tool to load data.
Infor. Vendor solutions are expected to be available for dealer • T he Rental project has successfully tested four of seven domains
adoption in Q1 (SAP/Accenture), Q2 (XAPT) and Q3 (Infor). for data transfer between DBS and DDSW with Holt of California.
• Data transmission project (Sterling Integrator Migration) is • T he data transmission project has identified 76 dealers to migrate
working with dealers to migrate from legacy transmission method to strategic transmission method by year-end. Nine migrations
to strategic solution. have started: Amur Machinery, FABCO Equipment, NEFC FZE,
• Dealer Financial Reporting System (DFRS) project is underway. P.T.T.U., Ries Engr Share,Tehama Trading, Teknoxgroup, Tiger
Goal: develop and deploy single financial reporting system/ Machinery, Vosto-Tech.
process to replace the varied financial reporting processes/
systems currently being used. The DFRS will improve reporting/ Project Implementation Timeline
roll-up velocity and enable more consistent analysis. • S eventy dealers are targeted to load data into the DDSW by
year-end 2015.
Major Milestones/Accomplishments • Sixty-five dealers are targeted to complete DDSW re-deployment
• As of March 1, 2015, 92 dealers had loaded data into DDSW. by year-end 2015.
Thirty-one had re-deployed the ETL tool. • Seventy-six dealers are targeted to migrate to the strategic
• The Big Data (Hadoop) environment is in production and data transmission solution (Sterling Integrator) by year-end 2015.
continues to be loaded into it. All data consumers should be • All data consumers are scheduled to be fully operational in the
migrated by Q2 2015. Big Data environment (Hadoop) by end of Q2 2015.
• Rental domain mapping is being tested with Holt of
California; Ohio Cat is scheduled as the second dealer to You can follow the on-going work stream improvements at:
test the Rental domain. (dealer-facing) https://dealer.cat.com/ddsw
(internal Caterpillar) https://cssd.cat.com/mis

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ACROSS THE TABLE | UPDATE

Economic Foundation

DEALER GROWTH AND PROFITABILITY


Project Team Lead: Patrick McCartan

VISION
Reduce the variability of system (Cat + Dealer) POPS and Profitability through identification of the key drivers and alignment of both Cat and the
Dealers to consistent commercial strategies and commercial performance management practices.

Major Ongoing Work Stream Initiatives Project Implementation Timeline


Harvest
Wave 1 Wave 2 Wave 3 Wave 4 Wave 5
• Executing Dealer Growth and Profitability (DGAP)
DSD Mar–Oct 2013 Nov–Mar 2014 Mar–Sept 2014 Sept–Feb 2015 Mar–Jun 2015
Harvest deep dives.
ADSD IIASA Ziegler Cleveland Sotreq Butler
• Leveraging Best Demonstrated Practices to accelerate Carter Madisa Wagner FINSA Western States
POPS growth. Poole Holt TX Cashman MacAllister Finning Canada
Louisana Peterson Quinn Milton
• Delivering on “Caterpillar Actions” requested by dealers as Mustang Warren
part of DGAP action plans. Example: New product support Alban Harnish Group
Toromont Wyoming
account management course developed and piloted. Ohio
• Working with Caterpillar Global Mining to integrate Empire
HARVEST

Expanded Mining into DGAP. EAME Finning UK Mantrac PSA Zahid


Bergerat PON Delmas VT
• Managing global governance process to track progress Borusan Zeppelin-Germany Zeppelin Russia Tractafric
and results. Al Bahar Barloword
• Facilitating alignment to DGAP 6A Commercial Framework. APD Hastings GMMCO Trakindo NCD TIPL
CEL Westrac NSW Westrac China CAT Kyushu Gough and Hamer
MSP Westrac WA W. Adams ECIM Shikoku Kenpan
Rental/Used/New (RUN) Phu Thai LSH Hae In SDI
• Applying DGAP methodology to Seed/Grow components CavPower

of the Business Model to support growth plans and drive


alignment on commercial practices.
• Executing plan to transfer process methodology and
Wave 1 Wave 2 Wave 3
leadership from Galt and Co. to Caterpillar as part
DSD Mar–Sept 2014 Sept–Mar 2015 Mar/Apr–Aug 2015
of Wave 3 RUN.
ADSD Carter Empire Finning Canada
Cleveland Bros. FINSA Alban
Major Milestones/Accomplishments Holt TX Madisa Gecolsa
Puckett Wagner
• Wave 1, 2, and 3 Harvest Dealers are in governance phase Sotreq
SEED/GROW (RUN)

– 2018 growth commitments range from 7 to 20+ POPS Yancey


Harnish Group
–O  n average, Wave 1-2 DGAP dealers’ year over year Hewitt
parts orders were 7% favorable versus other dealers EAME Barloworld Tractafric Bergerat
• Wave 4 Harvest studies are in implementation phase FSA Zahid Mantrac
• 30 Best Demonstrated Practices published to date Borusan Al-Bahar
VT (Russia) Finning UK
at dealer.cat.com/advisorDGAP
APD
– Over 1400 external downloads from DGAP William Adams
CEL
website in 2014 NCD
Trakindo
• DGAP CSF launched as part of Americas POPS
growth strategy.

Significant Dealer Interactions


• Wave 5 DGAP Harvest studies to launch at 7 dealers in
March/April 2015.
• Wave 3 DGAP RUN studies to launch at 12 dealers in
March/April 2015.
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