UPDATE: Caterpillar Announces New Organizational Structure for Mining and Customer and Dealer-Facing Divisions; Focus on Innovation and Data Analytics Remains a Key Priority
Building on its 90-year history
of providing unmatched product support around the world, Caterpillar Inc.
(NYSE: CAT) today announced a reorganization in its dealer and customer
support divisions. These changes are designed to improve and speed the
delivery of customer support while simplifying the way Caterpillar interacts
with its global dealer network.
"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," said Rob Charter, Caterpillar group president
with responsibility for Customer & Dealer Support. "Our dealers are the best
in the industry when it comes to knowing and serving our customers. These
changes will help Caterpillar increase accountability at the divisional
level and continue to differentiate the Caterpillar business model from our
The company is also placing added executive office emphasis on three
strategic initiatives -- data analytics, digital and innovation
capabilities; Lean Transformation; and the Across the Table initiative.
Having this additional, executive office focus complements the new structure
of Caterpillar's customer and dealer-facing divisions.
Mining Division Changes
As previously announced, Chris Curfman, vice president with responsibility
for Caterpillar's Mining Sales & Support Division is retiring, effective
December 31, 2015. His division will be integrated into the existing Global
Mining machine business divisions. Bringing product, operations, sales and
marketing organizations together in both the surface and underground mining
applications aligns well with our customers and will also enable a more
effective cost structure in a challenging mining environment.
The surface mining sales and support teams will join the Hauling &
Extraction Division, which will be renamed the Surface Mining & Technology
Division, led by Caterpillar Vice President Tom Bluth.
The underground mining sales and support teams will join the Material
Handling and Underground Division, led by Caterpillar Vice President Denise
Customer and Dealer-Facing Organizational Changes
The company is reorganizing divisions across the company into a new
structure that will improve efficiency and reduce complexity. This new
organizational structure will enable the company to more quickly deliver on
its previously announced Across the Table goals.
"Our team will be more responsive, agile and better positioned to work with
our dealers as we serve our customers," Charter said.
-- Distribution Services Divisions -- the primary interface with our
these divisions will remain but be reduced to two from three. The two
groups will maintain sole responsibility for dealer development and
performance, succession and continuity, along with portfolio management,
operational excellence and Across the Table strategy execution.
-- Asia Pacific, CIS, Africa & Middle East Distribution Division,
Vice President Raymond Chan -- covers dealers in Asia-Pacific,
Africa and the Middle East.
-- Americas & Europe Distribution Division, Vice President Phil
Kelliher -- covers dealers in North and South America and Europe.
-- Global Aftermarket Solutions Division, Vice President Nigel Lewis -- new
organization created to accelerate the growth of aftermarket sales and
service solutions. This organization combines the aftermarket sales and
marketing resources, with a focus on improving and growing aftermarket
sales and service for Resource Industries, Construction Industries and
Energy & Transportation, including Cat Work Tools and Cat Reman
-- Wear Components & Aftermarket Distribution Division, Vice President Doug
Hoerr -- new division that merges the design and manufacturing of
components and aftermarket distribution into one division to enhance the
company's focus on components availability and inventory improvements.
This organization will be closely aligned with the Global Aftermarket
Solutions Division to ensure product offerings meet or exceed customer
and dealer expectations.
-- Marketing and Digital Division, Vice President George Taylor -- newly
created division that builds on the current Analytics & Innovation
Division. Taylor, who has also been named Caterpillar's Chief Marketing
Officer, and his team will establish a go-to-market strategy for the
integration of data analytics, providing state-of the-art solutions and
support for customers and dealers. In addition to the digital
transformation of the dealer and customer experience, the division's
functions include global brand management, marketing, rental services
retail sales development.
-- Sustainable, Work Tools & Industry Solutions Division, Vice President
Greg Folley -- new division that brings together the sustainable
businesses of Cat Reman and Caterpillar Safety Services with the
company's machine attachment business -- Cat Work Tools (design and
manufacture). The new division also includes two external sales groups,
Cat OEM Solutions and Defense and Federal Products.
Construction Industries Update
In addition to these changes, the Global Construction & Infrastructure
Division, led by Vice President Paolo Fellin, has added responsibilities. As
part of the company's move to improve its dealer and customer coverage
model, the division will also assume sales responsibilities for work tools,
industrial and waste, paving and forestry products, as well as
responsibility for heavy rentals.
The above moves will be effective November 1, 2015.
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