COOLER-OIL 2020757 - Caterpillar

DECEMBER 2010
INFORMATION RELEASE MEMO
Reman
PELJ1237 ?2010 Caterpillar REMAN SEED POLICY & PROCESS FOR MEGA ORDERS
Announcement
This IRM is intended to reiterate some long standing policies relating to seeding of Reman parts/components. It will address questions related to when and how machine down (Mega) orders will be seeded, and outline who dealers should contact if they have any questions.
Parts Availability Commitment
As stated in the Policies and Core Management guide (SELD0122), "Caterpillar is committed to lead the industry in overall parts availability and customer service. Caterpillar may fulfill this commitment by using new parts or components to help satisfy demand for Remanufactured Products (we refer to this as seeding with new). There are certain parts that cannot be seeded or filled with new because an equivalent new part does not exist. There are also certain major components that are not set up to automatically seed but can be manually seeded when there is a machine down or higher priority situation and Reman cannot be made readily available. These major components include:
3500/C175 Engines
Final Drive Groups
Transmissions
Torque Converters
Steering Clutches
Mining Shovel Components
Stock orders for Reman parts are filled with Reman parts. If no Reman parts are available, the Reman part will backorder. If after 15 days, the Reman parts order is not filled, the dealer can replace their stock order with an emergency order with no additional service charges.
Reman parts ordered as an emergency order will be processed by first looking for the Reman parts available at each distribution center based on the dealers search sequence. For all seed eligible parts, if Reman parts are not found to fill the order, the search process will begin looking for the equivalent new part at each distribution center based on the dealers search sequence.
Reman components not set to automatically seed that are ordered as machine down (Mega) or for other higher priority situations where Reman is not readily available may be manually seeded. Regardless of the origin of the order, the manual seed process requires Caterpillar Logistics Services (CLS) personnel based in Morton to make manual adjustments to the ordering system to allow the seeding to occur at the appropriate distribution centers. A local distribution center cannot simply fill the order with new or the invoicing will not be correct. The process required is outlined below in the "Manual Seed Process Controls".
Manual Seed Process Controls
When a Mega order is received that cannot be filled with Reman, the following steps are taken automatically before a decision is made to manually seed the Mega order:
Customer services confirms locations/availability of all Cat Distribution Network Reman and equivalent New components
If none available, customer services will look at dealer search to confirm material not available outside the Cat Distribution Network
Customer services will confirm if any units have been allocated out to a distribution center and