The diagnostic information could immediately increase part and service sales to existing customers. Dealers could anticipate problems before they arise. Cat corporate is insisting dealers are not doing enough to schedule preventative and predictive maintenance.
Overall the company feels it dealer network needs to do a better job of helping customers manage their equipment fleets more effectively. These changes are fairly obvious but the dealers have not done them as nobody directed them to do it or helped them learn the processes.
This is the age of information. Technology and data analysis are changing the way businesses are looking at their operations.
In the case of Caterpillar, a company that has been around for 91 years, charging ahead into the 21st century is more of a challenge than first thought. There are more than 3. Many pieces of the equipment are equipped with sensors that send out continual status updates about mechanical systems and operator performance. The disconnect between corporate and dealers is the old school mentality. If it worked in the past it will work in the future.
Caterpillar believes they could be selling billions and billions of more parts and service each year if they could get their dealers to look at their machines as digital devices, constantly pinging them with sales and service opportunities — not just big pieces of steel and iron. The plan was unleashed to distributors via a private meeting and made public soon after.
Caterpillar states that one of the biggest issues with their dealer network is that each one which is independently owned and operated is not necessarily in contact with other dealers.
CAT insists that dealers are not offering consistent e-commerce solutions to customers who, in many, cases work with more than one Caterpillar dealer across the globe. If they work with multiple dealers, they want to have a common customer experience wherever they go across the globe. Caterpillar cited the example of the Australian market where four dealers have carved up the whole country.
Caterpillar Corporate themselves also have a few small depots that also sell a few specialty parts directly to the public. A customer may need a part in Perth. The corporate mentality is also challenging dealers to do a better job at foreseeing the changes taking place in the heavy duty construction market where sales of equipment to rental companies now pace new sales to contractors. Customers are seeing rental equipment a cheaper alternative to purchasing capital heavy machinery.
View Locations. Few Caterpillar dealers can match the extensive selection of new and used heavy industrial equipment offered by Cleveland Brothers.
Browse all Equipment. For your convenience, rentals are available on a daily, weekly, or monthly basis, and to save you time and effort, we also offer on-site delivery. View rental Equipment. Sometimes, all it takes is the right attachment to increase the versatility and flexibility of your existing equipment.
Cleveland Brothers offers a complete line of Caterpillar attachments to improve the flexibility of your equipment fleet while sparing you the cost of a new machine. Choose from quality Caterpillar attachments like brooms, buckets, forks, and rippers. If you are not sure what attachment is right for your needs, our staff of knowledgeable sales representatives and technicians can perform an assessment and make the proper recommendation. We can even dispatch one of our Field Service trucks to your location.
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Machines for Sale and Rent. Key Takeaways Caterpillar is a Dow 30 component, specializing in industrial machines and work vehicles. The company also makes money through its branded licensing of its logo and distinctive yellow color, and by renting equipment in addition to sales.
Here we consider six surprising facts about Caterpillar's business operations. Article Sources. Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. List of Caterpillar dealerships. View source. History Talk 0. This is an incomplete list , which may never be able to be considered complete.
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