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By: Giancarlo Guerrero
Caterpillar is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives.
Majority of the Caterpillar products are used for excavating land, loading and carrying heavy materials.
On November 24, 1904, Benjamin Holt
tested the first track-type tractor.
In April 1925, C.L. Best Tractor Co. and the Holt Manufacturing Co. merged forming the Caterpillar Tractor Co.
Caterpillar's main issue:
By the 1930's, the Illinois plant was one of America's major industrial complexes.
Caterpillar had to develop a plan that would allow them to move into services rather than just products.
The tractor company assumed they would achieve the same customers but realized they could lose them to companies that outsourced management internationally.
This would lead to the development of the enterprise's strategy known as, Vision 2020
In 2006 Jose Brousset realized that the company's five year growth targets can't be met.
Upon noticing that Caterpillar was in danger of not meeting its five year growth targets, Jose Broussset called a meeting in the spring of 2006. He insisted that the company's five year growth targets could not be met unless caterpillar switched from product centered company to a customer oriented company.
The LACD would be the first to attempt a new program that would offer customers additional services through CSAs with their equipment purchases.
CSAs stems from their enterprise strategy known as Vision 2020
Vision 2020 had two goals; increase profits and eliminate growing competition
Using the GAPS Model Jose Brousset was able to identify the services that their customers wanted.
Service Quality Gaps Model
Responsiveness vs. Tangibles
Customer Surveys only used sporadically
Customers with CSA's vs customers without
Reaching out to "General Construction Customers"
Competitors do maintenance on any product
Service Design and Standards Gap
CSA's never standardized
Salespeople not comfortable selling CSA's
Performance standards not customer driven
Dealerships divided into silos
Some customers lived far out
Service Performance Gap
Not enough of qualified mechanics
Lack of teamwork & communication
Customers did not play part
Supply and demand not matched
Inspections presented poorly
More details on customer's expectations
-new surveys that are more in depth
What features to include in the CSA?
-speak with the customers that have them and those that don't.
and Standards Gap
- make them identical
- incentive to sale
Standards in general
- CUSTOMER DRIVEN
- Hard standards
Latin American Countries
- different country, different dealership
Service Performance Gap
- efficient schedules
- training in communication
- Information Management System
- include it in the CSA
- car dealer reports
- provide information and require employee signature/feedback