Caterpillar, an international heavy equipment manufacturer, faced significant growth with an expanding global supply base. This required efficient management of new suppliers while maintaining relationships with existing suppliers — all through an integrated technology platform.
Caterpillar selected Group O to help manage its suppliers and to develop a fully integrated EDI solution to manage targeted suppliers, products and parts. Drop-ship and inventory processes were established to optimize product flow and freight logistics to Caterpillar facilities, worldwide.
To ensure highly efficient delivery, Group O designed and hosts a web portal that serves to integrate more than 600 global suppliers and manage 3,500+ products and parts. The portal provides custom features such as controlled order acknowledgments, compliant EDI ASN, pack lists and shipping labels, integrated invoice processing and workflow alerts. Multi-level security and role-based administration is also built into the platform — and Caterpillar leaders receive real-time reports and operational metrics in an easy-to-read dashboard.
By working closely with Caterpillar suppliers, Group O was able to improve on-time delivery in the non-core supplier base from less than 30% to more than 90%. Group O also eliminated shipping compliance issues between suppliers and 32 Caterpillar facilities worldwide. The new solution provides greater visibility, transparency, simplification and standardization across the supplier network — while at the same time reducing supply chain interruptions through improved documentation and execution. Even for a company that sets the standard in heavy lifting, this is a big load off its plate — allowing Caterpillar to focus on what it does best.