Caterpillar Logistics Services, a wholly owned subsidiary of Caterpillar Inc., this week opened a new Logistics Center in Suzhou, China. The new center provides inbound logistics support for Caterpillar's growing manufacturing footprint in China and for other Caterpillar manufacturing operations in the Asia-Pacific region. In addition, the Logistics Center serves as a consolidation / deconsolidation hub for the movement of goods in and out of China, supporting the manufacturing of Cat products globally.
The new 9,000-square-meter facility, known as the China Logistics Center, is located in the Suzhou Industrial Park and employs about 50 full-time employees. In addition to providing inbound logistics support to Caterpillar's China and inter-Asia manufacturing facilities, services also include bonded and non-bonded warehousing support and distribution, and line side replenishment.
"Caterpillar has worked hard with many local partners in Suzhou, including members of the Suzhou Industrial Park, and we thank them for their assistance during the site selection and fit-out," said Steve Larson, Caterpillar vice president with responsibility for parts distribution and logistics, chairman and president of Caterpillar Logistics Services. "This new facility has an important role in ensuring the success of Caterpillar's growing presence in China and will enhance supply chain and operational efficiency in our manufacturing operations in the region."
The China Logistics Center is applying the Caterpillar Production System to deliver efficiencies throughout the new facility. "By utilizing CPS Guiding Principles, we'll drive velocity and increase inventory turns while providing world-class material availability to our manufacturing facilities in Asia," said Ed O'Neil, vice president of Manufacturing Logistics Services for Cat Logistics.
This move is another element of Caterpillar's long-term strategy to increase its capability in China and greater Asia.
Headquartered in Peoria, Ill., Caterpillar Inc. is a leading manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines. Morton, Ill.-based Caterpillar Logistics Services is the low-cost provider of differentiated supply chain solutions for its parent company, Caterpillar Inc., and more than 60 other leading corporations throughout the world.