2015 Year in Review

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Efficiency

Streamlining Customer
& Dealer Support

The speed of business in the digital age demands that lines of communication and support be as tight and efficient as possible. For Caterpillar, those lines run mainly among the company, our dealers and our customers. After 90 years in the business, we know that to continue to thrive through change, we must periodically take a long, hard look at the way we work together and be willing to make adjustments that reflect changes in the industry, environment and available technologies.

We begin by recognizing that our dealers are in the best position to anticipate and meet our customers’ needs. The company’s role is to provide support and empower dealers to more efficiently service the end user. We reorganized all six divisions within Customer & Dealer Support (C&DS) in 2015 with the following objectives: to improve delivery of customer support, reduce complexity, capitalize on aftermarket opportunities, fully capitalize on our digital initiatives and strengthen the Caterpillar/dealer relationship for future growth. The organizational changes include:

Distribution Services Divisions are our primary interfaces with our dealers. We’ve consolidated them from three to two: Asia Pacific, CIS, Africa & Middle East Distribution Division and Americas & Europe Distribution Division. The new split reflects the common needs of dealers and customers who operate with similar issues and environments and enables them to work faster and better together.

Global Aftermarket Solutions Division combines sales and marketing into one strong team that works alongside our dealers to accelerate aftermarket sales and service solutions growth.

Wear, Components & Aftermarket Distribution Division combines component design and manufacturing with aftermarket distribution to improve component availability and inventory. This group works closely with the Global Aftermarket Solutions Division to increase responsiveness to customer needs.

1926 three visionary Caterpillar managers sat down
in San Leandro, California and wrote "Across the Table." In it, they outlined
the foundational principles that define the special relationship between Caterpillar and our Dealers.

Marketing and Digital Division is charged with the digital transformation of the dealer and customer experience. The team will establish a go-to-market strategy for the integration of data analytics and innovation, as well as being responsible for global brand management, marketing, rental services and retail sales development.

Sustainable Solutions Division at the heart of our sustainability drive from a product sense, brings together the sustainable businesses of Cat Reman and Caterpillar Safety Services with Caterpillar Work Tools, our machine attachment business, OEM Solutions and Defense & Federal Products.

In addition to these organizational changes within C&DS, we’ve brought product, operations, sales and marketing together in both surface and underground mining to better align with our customers and enable a more effective cost structure in a challenging mining environment. Surface Mining & Technology Division now encompasses Hauling & Extraction and surface mining sales and support teams, while underground mining and sales support joins the Material Handling & Underground Division.

Finally, within Construction Industries, the Global Construction & Infrastructure Division will also assume sales responsibilities for work tools, industrial and waste, paving and forestry products, as well as heavy rentals.

These organizational changes will help increase accountability at the divisional level, generate top line sales by optimizing dealer performance and capability, grow marketing capabilities through data analytics and digitization, and help dealers reconnect with customers to ensure the delivery of our brand promise. With a leaner, more agile business model, Caterpillar is driving toward operational excellence across all of our dealers with a better structure to support future growth.