CUP-BEARING 7H4566 - Caterpillar

Information Release Memo REM02-42
Reman
October 2002 NACD DEALER REMAN CORE RETURN "SHIPPING
INSTRUCTIONS"
It is the responsibility of the Manufacturing Logistics & Transportation Division to review
with the Remanufactured Products Group the effectiveness of the "Shipping Instructions"
(SELD0039-06) associated with the return of cores to designated Caterpillar facilities. These
instructions establish with dealers the shipping point (s), preferred carrier list, define who is
responsible for shipping and handling costs, and determine appropriate brokers to use as
needed. These instructions apply to all dealer core return shipments. Also, compliance is
important to assure that Caterpillar is getting the best value from our designated carriers since
we are paying the freight costs. Below is a description of the policy guidelines we request all
NACD dealers to follow.
Policy Guidelines
1. Follow Shipping Instructions as published in our Reman Products Guide and/or on
our Reman Web Site. In summary, ship every two weeks or sooner if 40,000 lbs. has
been accumulated, unless a special "RAP" run or other arrangements have been
defined for your dealership.
2. Refer to the "Approved Carriers" list on the Reman Web site for the proper carrier to
use for your dealership.
3. Dealers should display their designated "supplier code" issued by Caterpillar on their
Bill of Lading instead of just their dealer code to assure that we receive and record the
freight volumes correctly. The supplier code will be added to the CMIS 2 Customer
Profile in December 2002 to help improve the process.
4. Dealers that deviate from the recommended frequency and/or load limits could be
subject to a debit for additional freight charges.
5. Light truckloads are not allowed unless approved by Corinth Logistics prior to
shipment.
6. Follow the Drop Trailer policy with Star. The normal detention policy starts after 48
hours or 2 workdays. However, Star has agreed to waive the daily Drop Trailer
charge for a period of 10 workdays to allow the dealer the opportunity to accumulate
the 40,000 lbs. and meet our shipping requirements.
7. Dealers that do not comply will receive a "Shipping Noncompliance Notification" for
the first time noncompliance occurs. The Notification will include a description of
the problem and will show your shipping volumes and the carriers being used. We
request that the data is reviewed and start following the policy guidelines to avoid a
debit for freight charges on subsequent shipments that are in noncompliance. To
assist you in defining the best way to obtain compliance in the shipping of Reman
cores, please call Barb Cramer (Manufacturing Transportation & Logistics ? 309/266-
0409), or Gene Plunk (Reman Products Corinth ? 662/286-7409).
8. Dealers will receive an annual report of their core return shipping history. We
request dealers to review this report and to regularly work with us to maintain a
shipping solution that utilizes the best combination of carriers and shipment volume.
Average pounds per load will be the dealer metric used for measuring shipping
performance.
Core Management
Please refer to the Caterpillar? Core Management Information System (CMIS 2) Parts
Information application describing all reman part/CAF and related information. Also