Caterpillar Teams With IBM and i2 to Improve Collaboration and Reduce Costs Throughout the Value Chain
PEORIA, Ill., Sept. 7--Caterpillar Inc. (NYSE: CAT - news), IBM Corporation (NYSE: IBM - news) and i2 Technologies, Inc. (Nasdaq: ITWO - news) today announced an initiative to integrate Caterpillar and its suppliers' business systems to improve the coordination of production planning and resource scheduling.
The Value Chain Accelerator Program, developed by Caterpillar and supported by IBM and i2, focuses on strengthening the world's leading value chain for the heavy equipment and engine industries. The Program leverages e-business tools that facilitate measurable bottom-line savings for Caterpillar and its suppliers.
``The integration of supplier systems will allow Caterpillar and its suppliers to coordinate material flow, thus improving Caterpillar's ability to meet customer needs,'' said Michael Hackerson, director of e-business for Caterpillar. ``Our goal is to partner with our suppliers to drive costs out of business operations and speed product introduction cycles through more efficient design collaboration, improved inventory management, and more cost effective ordering and fulfillment processes.''
Suppliers can realize production efficiencies through greater supply chain visibility, enabling more accurate capacity planning. Advanced insight into customer demand can also enable suppliers to procure and stock materials that Caterpillar and other customers require.
``The ultimate goal is for Caterpillar's suppliers to see reduced process costs in the areas of new product development and schedule execution. The Value Chain Accelerator tools will be the vital communication link with our strategic suppliers and their supply chain,'' said Bruce Schuver, director of Materials and Procurement Services for Caterpillar.
The Value Chain Accelerator program will enable Caterpillar suppliers access to the supply chain expertise of IBM Global Services and i2. The program will leverage IBM's consulting and integration services and i2's supply chain management solutions. Solution packages will also include IBM infrastructure, middleware, hardware, and IBM ASP/hosting services.
``Our relationship with suppliers starts with a readiness assessment, when IBM and i2 help company executives decide which strategy and solution set is right for their business,'' said Bruce Anderson, managing principal of IBM Global Services' Industrial Sector practice. ``Our experience in delivering suppliers rapid time-to-value in Internet-enabled collaboration will help Caterpillar's suppliers realize the benefits of supply chain visibility more quickly and effectively.''
``The traditional marketplace is being redefined. Companies are no longer measured solely on market share within a geography, but increasingly on the effectiveness of their supply chain against their competitors,'' said Tom Cooper, i2 executive vice president. ``The Value Chain Accelerator confirms IBM and i2 are catalysts in today's marketplace redefinition.''
Caterpillar is the world's largest manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines. Headquartered in Peoria, Illinois, the company posted 2000 sales and revenues of $20.18 billion. For more information about Caterpillar, visit www.cat.com .
IBM is the world's largest information technology provider with 2000 revenues of more than $88 billion. IBM Global Services is the world's largest information technology services provider, with nearly 150,000 professionals serving customers in 160 countries worldwide. For more information, visit www.ibm.com .
i2 Technologies, Inc. is the leading provider of dynamic value chain solutions. Headquartered in Dallas, the company posted revenues of $1.1 billion in 2000 and has delivered an estimated $16 billion in audited value to its customers. For more information, visit www.i2.com .
Caterpillar Cautionary Language
The information included in the release is forward looking and involves risks and uncertainties that could significantly affect expected results. A discussion of these risks and uncertainties is contained in Form 8-K filed with the Securities & Exchange Commission (SEC) on July 17, 2001.
i2 Cautionary Language
This press release may contain forward-looking statements that involve risks and uncertainties, including the customer's ability to implement i2 solutions successfully or to achieve benefits attributable to i2 products. For a discussion of factors which could impact i2's financial results and cause actual results to differ materially from those in forward-looking statements, please refer to i2's recent filings with the SEC, particularly the Form 10-K filed March 29, 2001 and Form 10-Q filed May 4, 2001. i2 assumes no obligation to update the forward-looking information contained in this news release. i2 is a registered trademark of i2 Technologies US, Inc., and i2 Technologies, Inc.
SOURCE: Caterpillar Inc. |
