Caterpillar Cost Savings Advantage

720 Words3 Pages
Warehousing Caterpillar functions a numerous amount of manufacturing plants all over the world. They understand the dynamic, and are focused on time and deadlines. By having a lean manufacturing environment, it is required of a contract logistics provider. Caterpillar can bring their knowledge and proficiency to the customer which will help them achieve certain kinds of cost reduction and just in time for the manufacturing distinction that it has been achieved for Caterpillar. Caterpillar is one of the world’s largest contact logistic companies they obtain rich experience in global operations and have the best practice performance in metrics service parts logistics. Over the last several years Caterpillar developed a record of accomplishment with customers by reducing the current distribution center operation costs. By CAT following this method it has given them a more…show more content…
Every business uses this method to help them save money they do this by evaluating current expenditures and finding ways to cut internal costs. When businesses like Caterpillar use the cost saving methods into their organizational strategies, they can gain more of a financial advantage and become more competitive with other businesses that are like theirs. Caterpillar will gain an advantage by using their cost savings strategies. Caterpillars inventory throughput should be based on a first in first out model. By following this model, it will help keep the inventory from aging or becoming obsolete. For them to reduce the costs of product and cost to the end user inventory will need to be based on fixed options for customer consumption. All of the inventory should be ordered based off of the customer order board including a 10-15% increase to account for any re-production or any increases during the first 12 months of production. Inventory adjustments will need to be made each year based off of historical performance and market
Show More
Related

  • External Environment Analysis: Arthur Andersen & Co.: Administrative Accounting

    9236 Words  | 37 Pages

    Executive summary In this report I seek to perform multiple analyses on Accenture as a business entity that uses its unique set of resources, activities and capabilities that forms the basis of firm’s strategy. For this I have done the External environment analysis, internal environment analysis, SWOT analysis, competitor analysis. Also how it has tackled the dynamic external/internal environmental conditions effectively and its response to it and how Accenture has been able to decide on its strategies

    Read More

More about Caterpillar Cost Savings Advantage

Open Document