By Cat Reman | Posted: June 27, 2022
Now, let’s get to know some of the people in charge of planning the present and future of Cat Reman.
Throughout the remanufacturing process, the needs of the customer are our top priority. How does the Cat Reman team view these needs when designing, developing and promoting new remanufactured offerings?
Billy Frank — Our customers have a job to do… Their jobs are not to build engines or build machines. Their job is to move dirt. Their job is to move power. Their job is to move things from one place to another… And they need a high-quality product that allows that to happen consistently.
David Andres — We're here to serve our customers in almost every minute of every day, we're talking about the customer in some way, shape or form, and our objective is to serve them with the right product at the right time and the right price.
Jennifer Keffeler — We provide a significant amount of repair options for customers to choose from, we provide those repair options with like new performance, and we provide it at a lower cost than having to choose new.
Billy Frank – Our customers have a job to do … Their jobs are not to build engines or build machines. Their job is to move dirt. Their job is to move power. Their job is to move things from one place to another … And they need a high-quality product that allows that to happen consistently.
David Andres – We're here to serve our customers in almost every minute of every day, we're talking about the customer in some way, shape or form and our objective is to serve them with the right product at the right time and the right price.
Jennifer Keffeler – We provide a significant amount of repair options for customers to choose from, we provide those repair options with like new performance, and we provide it at a lower cost than having to choose new.
The Cat Reman team works closely with those who are involved in the manufacture of new Caterpillar products to ensure both can provide top-of-the-line offerings. How does that collaboration impact the remanufacturing process?
Danny Simon — One of the things that Cat Reman offers to our customers that nobody else can is that linkage back to our new component side of the business… We have the ability within Caterpillar Reman to, in parallel, introduce those same continuous improvement projects within Cat Reman products.
Jennifer Keffeler — Cat Reman has the engineering teams as well as the specialty to understand how to bring back a part to its second life and provide that like new standard. It's knowing the reuse opportunity for specific parts and making a very clear call on what can be reused so that it has like new performance versus what needs to be replaced.
Trent Tippey — When we've designed the product to be remanufactured... we've invested in the technical and the intellectual property, not only into the new side of it to ensure that we have an opportunity to win on the remanufacturing space, but also invested all the research and development into the second part of this, which would be into the restoring of that product back to its original condition.
With Caterpillar’s global supply chain, vast dealer network and commitment to providing like new quality through collaboration with engineers, technicians and others engaged in the manufacture of new Cat parts, what are the unique benefits Cat Reman products can offer to customers?
Jennifer Leustek — Cat Reman helps eliminate downtime, because our repair option offers off-the-shelf availability. You don't have to repair that component or maybe even a complete engine when you can drop in a Reman product… And that can be pretty eye opening for independent repair shops and end-user customers who want to get back on the road.
Marcus Fair — Cat Reman can provide [customers with] a technician in the box. When I say technician in a box, what I mean is [Cat] Reman can provide short blocks, long blocks or running complete engines for dealers' operations to be able to support their customers and free up the technicians where they don't have to be rebuilding, cleaning, inspecting engines… And they can just use [Cat] Reman product to improve their efficiency and throughput and get more done.
Trent Tippey — Let's use an engine in this scenario. Pulling the engine out, breaking it down to the sum of its parts, building it back up, testing it and putting it back into the piece of equipment sometimes can take days if not weeks in order to achieve that. And that's if you can get into the dealership right away, right? A [Cat] Reman product allows them to have a much quicker turnaround time.
Trent Tippey — We have over 8,000 part numbers in the Reman portfolio for Caterpillar today. Those offerings continue to grow every day that the teams here at [Caterpillar] are at work.
Brian Edwards — We've developed almost 400 new parts and assemblies just this year… We can put products on the shelf that allow customers to come in and basically make exchanges in real time.
David Andres — Within Cat Reman, we use inventory as an investment… [For] the oil and gas industry… we had our process partners in late 2019 telling us that the demand would be going up in early 2020 and by a factor of five… So, we prepared in advance. We put the inventory in place. The orders came up by a factor of five, exactly as predicted… We fulfilled the orders, the factory didn't have to move up. The supply base didn't have to move up, no back orders.
Billy Frank — Customers want the same things we want, which is options... If we give a customer two or three options, they have a choice and they can shop with us.
Trent Tippey — So you can always go buy a new piece of equipment… But maybe that's not something that is in your budget… Sometimes you don't need to have a brand new D11 dozer doing the work when you could maybe have a D10 that was on somebody else's job site before... A lot of folks see the value in a used piece of equipment. They see the value in knowing the Caterpillar [parts have] been engineered to a very stringent [standard]... As a result, they know they can rely on it [for] multiple lives.
Jennifer Keffeler — When we think about lowering repair costs for customers, a lower price point than new is critical. Cat Reman offers that. Our whole business model — of trying to get core back so that we can remanufacture it to like new standards — is what enables us to offer a lower cost repair option for customers.
Billy Frank — You're getting a lot of what you would expect from Caterpillar at a lower price point. It's good for the customer from a total cost of ownership perspective, it's good for the environment because it's recycled, reused, remanufactured product.… And, when you have those two things, it helps you win.
Bob Paternoga — We leverage our new side, failure modes and effects analyses. We utilize the original test specifications. And by having all of that data, we're able to, essentially, warrant our products like new.
Brian Edwards —The Cat Reman warranty is same as new… [That is] the confidence we have in the products we produce… It's going to be like new, with the same-as-new warranty, but you only pay a fraction of what it costs for a new part.
Jennifer Keffeler — Cat Reman's stringent guidelines on reuse give us a sense of confidence that we know where those parts are that we're reusing in a Reman engine, and — if they have the life left in them — that we want to guarantee from a Caterpillar warranty standpoint.
So, where does Cat Reman go from here?
Marcus Fair — Customers are evolving and changing, right?… The way they do business is changing. They're trying to get more efficient. They're trying to, again, make money for themselves and for their customers. So, Cat Reman has to have our ears to the ground, understanding customers' needs and their wants.
Brian Edwards — In the next five years, I see the Remanufacturing Division growing… our focus is on creating the additional offerings and the right solutions to do our part of delivering the services growth, and at the same time being a huge piece of our sustainability message and story going forward.
Trent Tippey — I think you're going to see as we continue to invest more energy in these smaller scaled operations, you're going to see a lot more offerings come in the future as we invest more time and energy to bringing some of those offerings out… We're going to play a huge part in sustainability. I think Cat Reman is going to be a conversation with our customers, conversation with political entities throughout the globe, and a conversation around the dinner table in regards to how we, as a society, can meet the challenges of climate change head on.
Billy Frank — I'm often reminded that, you know, well over 90% of everything that we buy has spent some time on a truck. And if it's spent some time on a truck, it's probably spent some time utilizing Cat Reman products in some way, shape or form… We play a role in helping a generator provide power to a hospital, helping a generator provide power to a bank, a data center, to helping move gas through a pipeline from one coast to another coast. To help a vessel get across an ocean.
It's these customer considerations that will continue to drive the evolution of Cat Reman.
Now that you know their thoughts on Cat Reman, learn how the leaders fit into the overall scheme of Caterpillar’s remanufacturing strategy — in their own words.
David Andres – Strategy Manager, Cat Reman
- My team really does help ensure availability to our customers and the dealers… We connect with our industry groups, our product marketing groups, product groups… and figure out where those customers need the product. And then we direct actions in the supply base to execute to make that happen.
Brian Edwards – Vice President, Cat Reman
- When I first came in, we had the operation side of our business… On top of that, we've built a team with our business development, human resources, business resources — being our chief financial officer — and also our complete commercial team.
Billy Frank – General Manager, Aftermarket Sales and Marketing, Cat Reman
- Cat Reman touches pretty much the entire portfolio that Caterpillar has, we get a chance to see multiple industries create success for their customers utilizing Cat Reman products. And that's refreshing.
Marcus Fair – Global On-Highway Truck Engine Sales Manager, Cat Reman
- My job is really working with the E&T industry groups… Looking at lost opportunity, understanding the voice of the customer, the voice of the dealer. And working with the [Cat] Reman product group, develop solutions to support them.
Jennifer Keffeler – District Manager, Caterpillar
- In my previous role as the Global On-Highway Truck Sales Manager, we had aftermarket sales reps as well as account managers. They work day-to-day with our Cat dealers, our second level dealers, our TEPS dealers and independent shops… The job day-in and day-out is helping to make sure that those customers who are driving a truck with a 20-year-old Cat engine in it are still thinking about Cat aftermarket parts to keep them up and running.
Jennifer Leustek – Product Manager, Cat Reman
- If Cat Reman product engineering is involved to help with ensuring some of the design features that are in place as well as our commercial position… It automatically sets Caterpillar up for many years to come in terms of building confidence… Showing that we can take product back, clean, inspect, salvage and produce like new.
Bob Paternoga – General Manager, Cat Reman
- I'm very proud that we truly offer products that are more sustainable... We have nearly 4,000 people that wake up each and every day, and they think about nothing but Cat Reman products and solutions for our customers, and they love doing it, which makes me love doing it.
Danny Simon – Product Manager, Cat Reman
- [I make sure] that we continue to maintain our alignment with our new-side engineering. So, as those products continue to evolve and get enhanced over time, those enhancements get put into our [Cat] Reman products in parallel to that on the new side of our business.
Trent Tippey – Construction Industries Commercial Manager, Cat Reman
- I get the unique opportunity to help our customers find the lowest total owning and operating costs for the piece of equipment they have, over the lifecycle of that piece of equipment.
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