Caterpillar Chooses Hosted Transportation Management

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Caterpillar Chooses Hosted Transportation Management

Caterpillar Logistics Services has entered into an agreement with Wisconsin-based Schneider Logistics to provide it with a hosted supply chain solution.

Caterpillar will use Schneider's Sumit technology to help manage both inbound manufacturing supplies and outbound parts to clients around the world. Until now, Caterpillar has not had a sophisticated transportation management system. The relationship between the companies began with Schneider's work on supply movement in Caterpillar's manufacturing group, says Brian Hancock, Schneider's VP of operations. Hancock says as a result of that work, a demonstration of transportation systems set up for GM and Case, and discussions of the value of their supply chain integrator product, Schneider is now slated to support Caterpillar Transportation Centers being set up in Peoria, Illinois, and in Europe, South America, and Asia.

The software for the transportation system will reside in Schneider's Green Bay offices, with Caterpillar users accessing the system over the Web or using specialized connections set up by Schneider. The hosted nature of the system will allow Caterpillar to be up and running on the system in under 120 days. Some Caterpillar suppliers are already on board. "With the supply chain integrator product, we've already connected to over 2,500 suppliers," says Hancock, "A lot of the suppliers that Caterpillar was trying to connect to are already connected to the system. It's that power of the network that you're able to get with the ASP environment."

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