OPERATOR AR 1348367 - Caterpillar

JULY 2009
INFORMATION RELEASE MEMO
Reman
PELJ0816-01 ?2009 Caterpillar REMAN PARTS AVAILABILITY & SEEDING POLICY
Issue
When ordering Reman parts, some part numbers may show "0" on hand inventory in Caterpillar systems even though an order for the Reman part would be filled with a new or "seeded" equivalent part. As a result, many dealers will order the new part equivalent to ensure timely delivery when Reman availability is uncertain. This results in the customer losing the chance for a lower cost repair option and Caterpillar losing a useable core.
Action Requested
A list of seeded Reman part numbers is maintained on the Reman dealer website at catreman.cat.com on the home page under "Quick Links" and on the "Parts" tab. The list details Reman parts currently on initial seed support. We request Dealer Parts Sales and Inventory Control Managers to regularly review the list and adjust ordering practices or reset DBS inventory replenishment indicators to provide lower cost repair options to their customers.
Definition of Reman Seed
When a NEW part or component is used to fill an order for a Reman part, the NEW part is referred to as a SEED part. Remanufacturing processes all require some level of seeding due to core fallout (not all core can be cost effectively remanufactured to meet customer expectations). Therefore even after a product is outside of the initial introduction seed period, there may be some orders filled with new when the core available to support the program is insufficient.
Why Fill with New (Seed)?
When most Reman part numbers are initially introduced, they are set up to seed 100%. This initial seed support is done to collect core for an eventual remanufacturing process. Unfortunately, current Caterpillar systems such as DBS, ANTARESSM,etc. do not show availability on the Reman number or the seed status. This means that Reman parts on seed support will almost always show "0" on-hand quantity, even though orders for Reman will be filled from new with the new inventory on hand. Many dealers have expressed a reluctance to order Reman when the availability of the part is uncertain. When Reman is the preferred option, always order under the Reman part number regardless of what the system shows for on hand. For parts that are set up to seed, as long as there is a new equivalent available, the Reman order will be filled. By ordering the Reman component, you can offer a lower cost repair solution to your customers and help Reman obtain the cores needed to support a Reman program.
The parts on 100% seed support will change over time. The Excel file will be updated regularly, however, please be aware that seed parameters are always subject to change. By more clearly identifying those parts we are currently seeding 100%, we hope to improve Reman parts availability for our