Quality Magazine

Caterpillar Announces New Parts Distribution Center in Mexico

April 2, 2012

PEORIA, IL-- Caterpillar Logistics Inc. (Cat Logistics), a wholly-owned subsidiary of Caterpillar Inc., has announced further enhancements to its parts distribution network with the addition of a new parts distribution center in San Luis Potosi, Mexico. The 500,000-square-foot facility will employ up to 150 people and is expected to be operational mid-2013. The capital city, San Luis Potosi, serves as an “ideal” location for a strategic logistics operation, Caterpillar says. Access to major airports and a rail hub is complemented by a major highway crossroads, providing access to transportation routes between major cities in Mexico.

This investment represents the first of many aimed at enhancing parts distribution operations in Central and South America. The facility in Mexico will be the sixth new parts distribution center in the modernization plan and will join new facilities in Central California; Clayton, OH; Spokane, WA.; Waco, TX; and Dubai, UAE.

In addition to these new facilities, there are also capacity expansion projects underway at existing Cat Logistics facilities in Atlanta, GA; Grimbergen, Belgium; Melbourne, Australia; and Shanghai, China. These projects are focused on increasing capacity and realizing network efficiencies. All of these facilities are leveraging common systems and processes in addition to Service Parts Management (SPM), a global solution that replaces multiple legacy software systems supporting the Cat parts network.

"We are pleased to reach the next stage of our multiyear expansion, and this facility will further enable us to meet the significant growth in this region now and in the future," says Steve Larson, vice president of Caterpillar Inc., and chairman and president of Cat Logistics. "Our investments in state-of-the-art technology and processes have one purpose-ensuring that Caterpillar and Cat dealers support our customers' success better than anyone else," Larson added.

In addition to the global expansion and enhancement of the Cat parts distribution network, Caterpillar has announced a number of strategic capacity expansions globally including new and existing manufacturing facilities and additional research and development capacity. These actions have occurred in the United States, South America, Europe and across Asia, positioning the company to meet growing demand for its products in the coming years.