2015 Sustainability Report

IN THIS SECTION:

VALUE CHAIN

Focus Area

An Integrated Value Chain

Caterpillar is building capability to deliver an integrated value chain. The company that connects its end-to-end business – from customer all the way back through its chain – will gain and maintain industry leadership.

To deliver an integrated value chain we must engineer our value chains just like we engineer our products. It’s an end-to-end approach, encompassing the customer, dealer, product design, logistics and our supply network. When synchronized, Caterpillar maximizes quality, value and speed to the customer.

Our Customer Service Promise

An integrated value chain starts with the customer and it’s more than just gathering customer feedback. It is the deep understanding of the specific features, performance and delivery expectations that are used by our customers in the decision to purchase a Cat product versus the competition. It’s also the first step of how we engineer a value chain.

In early 2014, four product teams piloted the work to redesign Caterpillar’s end-to-end business. By the end of 2015, more than 25 teams have started the journey.

Each engineered value chain is different – just as the businesses they serve are different – but the purpose remains the same, design our chain – like we design our products – end to end in order to maximize quality, value and speed to the customer.

When we apply focus on every aspect of our chain we stabilize our business through the cycles, strengthen our relationship with customers and dealers, increase profitability and ultimately win in the industry.