Caterpillar has plans to move into e-commerce. The world’s biggest manufacturer of construction machinery has launched a programme to cut supply costs by $100M a year by sourcing parts and materials electronically.
According to a report in the Financial Times the company has plans to sell parts and even machines from its light machinery range online.
Light machinery sales, which include a growing range of mini excavators, accounted for $150M in the last financial year and the company estimates that this will reach $800M by year 2003. It is said to be on track to achieve its aim of one fifth of this market which is valued at about $4bn a year. Engines are another growth area with sales on stand alone units, particularly for use in gensets, rising 5% to $6.8bn this year.
Estimates are that engine sales will continue to rise and by the middle of this decade will account for half the company’s external sales. Currently they represent around one third.
