What is Caterpillar Distribution?

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Caterpillar is the world’s largest manufacturer and distributor for machinery and engines. The company also deals with the provision of financial services and insurance as its secondary business. Caterpillar being a very large company with multiple branches all over the world, has quite a complex distribution channel. For this reason, the corporation has set aside a wing that only deals with the distribution of CAT products. This is in addition to offering consultation services to other companies seeking advice on how to increase their distribution efficiency. To enhance distribution of its machinery, engines and parts, Caterpillar employees many dealers. This enables them reach as many clients as possible while significantly lowering the costs of distribution. Caterpillar prides itself in having more than 220 caterpillar dealers in the more than 200 hundred countries where CAT sells its products.

Services of a Caterpillar Dealer?
CAT dealers offer 4 major services. That is;
• Sales
CAT parts dealers are involved in the sale of both new and aftermarket heavy equipment parts. They stock both the new and used machines and parts to suit the needs and budgets of caterpillar clients. CAT dealers sell to both wholesalers and retailers who are interested in supplying CAT products.

• After Services
If you are looking for repair or maintenance services for your CAT equipment, you do not go directly to CAT. Rather, you will visit any CAT dealer to help you with this. CAT dealers stock repair parts, in addition to conducting repair services for CAT products.

• Equipment Rent
A CAT parts dealer is also responsible for renting CAT equipment to companies and individuals.

• Distribution of Parts
Dealers for CAT products will have CAT parts in stock to go along with their sale for CAT machinery and engines.

Conclusion
CAT utilizes an indirect distribution channel. This strategy has been a big contributor to the success of CAT. Caterpillar has many distribution centers set up in multiple locations of the globe. This distribution centers stock machinery, engines and parts from the main plant. They assemble the parts and sell them to CAT dealers. CAT dealers on the other hand play the role of distributor to wholesalers and retailers. In addition, they offer after sale services such as repairs and maintenance. Also, they stock CAT parts, ensuring that CAT users all over the world has access to parts at their convenience. This enhances their credibility in the business.

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