Caterpillar launches major restructuring

Heavy equipment manufacturer Caterpillar (NYSE: CAT) will transform how its mining, customer and dealer divisions operate with an eye toward increasing efficiency and customer satisfaction.

“These organizational changes will drive needed simplicity to the business, further enabling us to meet customer and dealer needs by becoming more nimble, lean and responsive,” Caterpillar group president for customer and dealer support Rob Charter said.

Starting in 2016, the firm’s mining sales and support division will be integrated into its global mining machine business divisions. This move will bring product, operations, sales and marketing together for surface and underground mining applications. 

Caterpillar says this will align with its customers’ needs and reduce the company’s costs.

Under the new regime, surface mining sales and support teams will join the hauling and extraction division, which will be renamed the surface mining and technology division. 

The underground mining sales and support teams will become part of the material handling and underground division. 

Caterpillar is also creating several divisions within its customer- and dealer-facing operations to cut complexity and costs.

The company’s distribution services divisions — the primary interface between the company and its dealers — will be lowered from three to two: one serving globally, and another for the Americas and Europe.

A global after-market solutions division will be created to facilitate the growth in after-market sales and services for the resource sector.

The company will also merge the design and manufacturing of components and after-market distribution into the new wear component and after-market distribution division.

A new marketing and digital division will be focused on developing a developing a marketing strategy that integrates data analytics to providing solutions and support to customers and dealers.

The group will also handle the digital transformation of the dealer and customer experience, as well as global brand management, marketing, rental services and retail sales development. 

Finally, the company will create the sustainable, work tools and industry solutions division, which combines the Cat Reman and Caterpillar safety services units with the company’s machine attachment business Cat work tools. 

Established 90 years ago, Caterpillar is headquartered in Peoria, Ill. In 2014 the firm generated US$55.2 billion in revenue. 



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