caterpillar at sap configuration day - caterpillar pr approved

Engine Business Transformation Office

Order to Cash Work Stream

Power & Energy Systems

Caterpillar Confidential Green



Slide No. !2Power & Energy Systems

How SAP Variant Configuration helps Caterpillar to achieve Grief Free Quotes and Orders

SAP Configuration Day March 12, 2013 , Chicago, Il, USA

- Lennart Nilsson -





Slide No. !3

!!! Disclaimer !!!

Focus on enterprise value, not SAP technical solutions!

- CWG is your SAP forum for technical solutions and they arrange annual conferences in both Europe and North America -

Caterpillar Inc.

Overview

Construction Industries Helping our customers build what the world needs

Construction and Mining Machines, Energy and Power Systems and Product Support

Resource Industries Making it possible for customers to mine and harvest resources, such as coal, iron ore and lumber, in a profitable and sustainable way

Energy & Power Systems Focused on meeting world’s increased energy needs through a variety of solutions and applications across multiple industries with a portfolio of brands

Customer and Dealer Support Bringing strong focus to Caterpillar brand parts, customer services and development and delivering unmatched parts availability and product support to dealers and customers anywhere in the world


Standard configurations as well as Custom Quote/Orders (DTO/ETO) are part of our DNA!




Power & Energy Systems Slide No.


!7Power & Energy Systems Slide No. 7

What are Custom Orders for Caterpillar?

Value Added Packaging Custom Base Custom Components & Systems Special Paint Project Documentation Testing Certifications

Custom Generator

EngineCustom Generator set

Package

Custom Transmission Custom Transmission

PackageEngine

+

+ +

+

Desert Enclosure

Control Systems

Frac Trailer

…or a complete vessel power and propulsion supply…





!8Power & Energy Systems



Slide No. 8

…or Complete Power Plants!








Slide No. 5

Use of SAP Variant Configuration (VC) and Internet Sales Application (ISA) to achieve virtually grief free

orders








Slide No. 6

SAP Experience and Path Forward

As-Is • FG Wilson “SAP”

– “end-to-end” SAP since late ’90s – Initially manufacturing focus with expansion to include CRM and front-end ISA

• Cat Brand Engines “EOMP” – SAP configuration, quoting, ordering and invoicing since 2003

• Interfaces to seven legacy manufacturing systems and to legacy accounting systems • B/W for analytics and reporting

• Asia Manufacturing “CBS” – All Asian manufacturing on the same SAP platform

To-Be • Enterprise SAP Implementation – Mach 1

– Plus 200 Order to Cash sites by 2015 – Replacing 40-50 legacy systems – Transformation to global common processes – Both component manufacturing and configurable prime product manufacturing

• From the largest mining truck, smallest diesel engine, myriad of hydraulic hoses and work tools like buckets, to contract manufactured products…

• ...as well as Custom quote and Orders





Slide No. !11

SER: Special Engineering Request or Custom Quote/Order (DTO/ETO)

May 1998 Andersen Consulting Voice of Customer Study – Order Grief and Custom

Orders critical future success factors!





Slide No. !12SER: Special Engineering Request or Custom Quote/Order (DTO/ETO)

June 1998 Andersen Consulting Analysis identified root causes for Order Grief – Custom

Orders and Configurations…





Slide No. !13

July 1998 Andersen Consulting study laid out the strategic vision for Grief-free orders and

improved analytics capabilities





Slide No. !14

2002 – Implementation of SAP SAP Powered Configuration, Quote, Order and

Invoicing processes





Slide No. !15

1998

- 95% reduced Order Grief> 45% reduced cycle time

…while having : - higher percentage custom quote/orders - multiple X in volume increase - improved Order Process user satisfaction!

Results 1998 to 2010

106.3 Days

Dec 2002 Board Meeting





Slide No. !16

…and already in 2004 SAP B/W reporting, based on SAP VC/Master data and SAP transaction data,

added strong pricing analytical capabilities, in addition to achieved reduced grief and enhanced

custom capabilities!

.








Slide No. 6

…SAP and aligned processes is our way forward!

As-Is • FG Wilson “SAP”

– “end-to-end” SAP since late ’90s – Initially manufacturing focus with expansion to include CRM and front-end ISA

• Cat Brand Engines “EOMP” – SAP configuration, quoting, ordering and invoicing since 2003

• Interfaces to seven legacy manufacturing systems and to legacy accounting systems • B/W for analytics and reporting

• Asia Manufacturing “CBS” – All Asian manufacturing on the same SAP platform

To-Be • Enterprise SAP Implementation – Mach 1

– Plus 200 Order to Cash sites by 2015 – Replacing 40-50 legacy systems – Transformation to global common processes – Both component manufacturing and configurable prime product manufacturing

• From the largest mining truck, smallest diesel engine, myriad of hydraulic hoses and work tools like buckets, to contract manufactured products…

• ...as well as Custom quote and Orders








Slide No. 15

caterpillar at sap configuration day - caterpillar pr approved

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