Caterpillar Announces New Parts Distribution Center in Dubai
- 06 January 2011
- Company & Industry News
Caterpillar Logistics Services, Inc. (Cat Logistics), a wholly owned subsidiary of Caterpillar Inc. (NYSE: CAT), today announced plans to open a new parts distribution center in Dubai, United Arab Emirates. The new distribution center will be the third facility added to Caterpillar's global service parts distribution network in the last five years. The new 450,000-square-foot facility is part of the multiyear expansion and enhancement of the Europe, Africa and Middle East (EAME) Cat Parts distribution network. The Dubai Distribution Center will employ between 100 and 120 people and will further strengthen primary aftermarket parts support in the Africa and Middle East region.
"We are very pleased to be adding the Dubai Distribution Center to our industry leading
global parts network," said Steve Larson, Caterpillar vice president with responsibility for parts
distribution and logistics, Chairman and President of Caterpillar Logistics Services, Inc. "With
the outstanding product support capability of Cat dealers in the region and the improved parts
availability this operation will deliver, we will continue providing customers an unmatched level
of after-sale support."
Once operational, the Dubai Distribution Center will increase total warehouse capacity
for the EAME network, adding to existing Distribution Centers in Grimbergen, Johannesburg
and Moscow. "We are excited about our overall growth opportunities in the Middle East and
Africa markets and, along with our dealers, are investing in expanding our facilities," said Paolo
Fellin, Caterpillar vice president with responsibility for EAME Distribution. "The Dubai
Distribution Center, combined with further enhancements to our Johannesburg Distribution
Center, will allow us to improve parts and components availability and the delivery process to
our dealers and customers in this growth region."
The SAP Service Parts Management (SPM) system will be deployed at the Dubai
Distribution Center. SPM is a global solution that replaces multiple legacy software systems
supporting the Cat Parts network. SPM has been successfully implemented in North America in
two locations and is also being implemented at the Clayton, Ohio, Distribution Center which is
under construction and set to open in 2011.
The Dubai facility will also contribute to Caterpillar's sustainable development goals by
reducing airfreight for parts ordered in the region. Operations for the new Dubai Distribution
Center are expected to be underway in 2012.
The new Dubai Distribution Center is an important part of Caterpillar's overall plan to
enhance the global Cat Parts distribution network and get parts to dealers and customers faster.
Since the inception of this plan five years ago, capacity has been added in every region with the
opening of the China Distribution Center in Shanghai in 2006, the Russia Federation Distribution
Center in Moscow in 2007 and the Waco Distribution Center in Texas in 2009.