Introduction to G&D Integrated

G&D Integrated At a Glance

Company origins in 1880

85+ year history serving Caterpillar

2012 Revenues: $178 million

11 facilities with 1.4 million sq ft

450 trucks

2,000 trailers

ISO 9001 2008 Registered

EPA SmartWay Transport Partner

Global customers in automotive,

electronics, machinery and retail

markets

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Global OEM Leaders and Their Supply Chain Partners Rely on G&D Solutions

Retail/Consumer Goods

Machinery Electronics

Automotive

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G&D Integrated Logistics Services

Right Part, Right QuantityRight Quality, Right Time

Thousands of PartsFrom All Over The World

Cross Docks

Warehousing

Inspection

Rework & Repair

VMI Centers

Postponement

Fulfillment

Packaging

Reverse Logistics

Material Handling

Kitting

Sequencing

Fabrication

Assembly

Field Packaging

JIT/Flow Line Design

Logistics Planning

Dedicated Truckload

Intermodal Drayage

JIT Delivery

Optimized Milk Runs

Jockey Services

Yard Management

Transportation Analysts

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Transportation

Distribution

Manufacturing

Delivered to Point of Use

Parts, Assemblies and Components

G&D Integrated Solutions Backed by Dedicated Resources, Lean Process Expertise and Technology

World Class Supply Chain Performance

Custom Designed

Solutions

Transportation

Distribution

Manufacturing

Organized to

Optimize Customer

Networks

People

Facilities

Equipment

Value Stream Maps

5S

Standard Work

Kaizen Events

Visual Factory

Performance Metrics

Lean Audits

Best of Breed

Enterprise

Applications

Integration

Middleware Platform

Web-Based

Provisioning and

Reporting

Real-Time Visibility

Lean

Manufacturing &

Logistics

Expertise

Flexible

Information

Technology

Manage

Execution

Manage

Processes

Integrated

Logistics

Solutions

Optimized

Supply Chains

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Representative Customer Engagements

Product Location G&D Services Provided

Paving Machines Anoka, MN Kit Design, Kitting, On-Site Logistics, Warehousing

Earth Moving MachinesMining Machines

Decatur, IL Assembly, Kitting, Engine & Systems Test, Paint, Packaging, New Product Introduction, On-Site Logistics, Warehousing, Transportation

Construction MachinesMining Machines

Oswego, IL Vendor Managed Inventory, Logistics Analysts, Jockey Service, Yard Management, Cross Dock

Mining Machines Peoria, IL Warehousing, Inspection, Kitting, Packaging, Rework/Repair, Transportation

Diesel Engines Peoria, IL Vendor Managed Inventory, Logistics Analysts

Hydraulic Systems Oswego, IL Vendor Managed Inventory, Assembly

Transmissions Peoria, IL On-Site Logistics, Warehousing, Kitting, Packaging, Transportation

Track Type Tractors Bartonville, IL Assembly, Vendor Managed Inventory, New Product Introduction, On-Site Logistics, Returnable Management, Cross Dock, Transportation

Farm Machines Goodfield,IL Fabrication, Assembly, Kitting, Lean Logistics Process Design

Track Assemblies Morton, IL Assembly, Vendor Managed Inventory, Warehousing, Transportation

Beverage Cans Monticello, IN Warehousing, JIT Delivery, Returnable Management

Service Parts Bartonville, IL Cross Dock, Domestic and Export Consolidation

Service Parts Peoria, IL Warehousing and Distribution for Service Parts and Repair Kits

Service Parts Component Parts

Midwest USASoutheast USA

Dedicated Transportation, Intermodal Drayage, Container Yards, Chassis Pool, Load Planners

Returnable Containers Midwest USA Returnable Container Cleaning and Distribution

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Integrated 3PL service offering that manages all material processing from supplier delivery to consumption at the point of use

Integrated Logistics Solutions for Manufacturers

Track Assembly Operations

Caterpillar Morton

Service Parts DC

Caterpillar East Peoria

Track Type Tractors

Caterpillar Aurora

Hydraulic Excavators

Downstream Operations

Long-term Demand

S&OP Data

Upstream Supply Chain

Domestic Suppliers

Raw Material VMI Program

• Load Scheduling

• On-time PerformanceMeasurement

International Suppliers

• G&D Import Drayage

• Load Scheduling

Local Supplier

Local Supplier

• G&D Local Truckload

• Dynamic Daily Route Execution

• Supplier Pick-ups

• WIP Transfers

• Returnable ContainerDistribution

• G&D Local Truckload

• JIT Delivery

• Specialized Equipment

G&D Build Schedule

3 Week Firm Order Window

Communicated to Suppliers

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G&D Provides Dedicated Transportation to Help Caterpillar Optimize Service and Cost

With a pedigree built from the parent company,

Caterpillar Logistics size and global scope

rank it among worldwide leaders in global

transportation services across all types of

delivery modes. Cat Logistics is a worldwide

leader in helping customers achieve lower

annual transportation costs while meeting

demanding customer service and delivery

requirements.

Business Issues:

Transportation services fragmented – too

many carriers

Too many empty miles

Too much empty space on trailers

Lack of timely visibility and status

Solution Provided:

Dedicated transportation services

Network Optimization

Track & trace via GPS

On-line order entry

Data availability

Results:

30% Reduction in cost per move

Reduced trailer cost by 29%

20% reduction in premium freight spend in

selected lanes

Cost allocation details available for each

operating business unit

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Case IH Ag Equipment Manufacturing Improves Material Flow and Accuracy to Support Growth

Case IH is a global leader in agricultural

equipment and has powered agriculture for

more than 160 years. Case IH is committed to

collaborating with its customers to develop the

most powerful, productive, reliable equipment -

designed to meet today's agricultural

challenges.

Business Issues:

Struggling to meet increased demand

Facility, equipment and personnel

constraints

Lack of visibility and status

Lack of timely reporting

Solution Provided:

Established Lean Manufacturing Program

Office

Resources to support cycle counting

Revamped material storage location

system

Implemented bar code transaction

reporting

Results:

Improved inventory location and record

accuracy avoiding need for plant shutdown

and wall to wall physical inventory

Improved material handling productivity by

10%

Reduced material pick time by 66%

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G&D Integrated Applies Lean Manufacturing to Help Caterpillar Extend Undercarriage Leadership

Business Issues:

Poor schedule performance

Inventory too high

Production costs too high

Solution Provided:

G&D adopted Lean Manufacturing to

identify and eliminate waste and non-value

add activities

5S

Facility/area/hour to hour boards

CI card process

Rapid improvement workshops

Simulated work environments

Training centers

Results:

Past due deliveries reduced 77%

Inventory reduced 60%

Defects/million reduced 90%

Injury frequency reduced 60%

Total costs reduced 8.5%

Undercarriages are powerful systems that

guide the machine over all types of terrain.

High-quality materials and carefully

controlled manufacturing processes ensure

Caterpillar remains an industry leader by

increasing machine productivity while

lowering owning and operating costs.

Komatsu Needed a Partner to Integrate Inbound Logistics so They Could Focus on Core Assembly

Business Issues:

Space constraints

Poor inventory record accuracy

Inventory segregation and management

Productivity

Lead times for large fabricated components

Solution Provided:

Consolidated warehouse operations

Kitting operation

Requirements planning and

postponement for imports

Sub assembly

IQA, shot blast and primer

Localized supply chain

Systems synchronization

Results:

30% productivity increase in warehouse

Inventory and lead time reduction for

fabricated components

Provided capacity to support 300% volume

increase11

Komatsu provides a wide array of construction

and mining equipment, ranging from super-

large machines capable of mining applications

to mini units for urban use. Their range also

includes a huge variety of attachments, and

supporting products.

G&D Integrated Helps Caterpillar Improve Quality, Delivery and Cost of Track Type Tractor Production

Business Issues: Cost of outsourced production too high

Material flow inefficient

Delivery and quality performance not meeting

requirements

Solution Provided: G&D opened a facility to perform:

Engine dress

Operator platform assembly (including

electronics)

Hydraulic valve and tank assembly

Designed and implemented following Lean principles

Line design, process engineering

Standard work

Logistics support

Results: Increased throughput 30%

Reduced manufacturing space 50%

Reduced employee headcount 15%

DPU performance improved from 0.17 to 0.07

(reduction of 40 defects per month)

Combined space and headcount reductions reduce

cost by $1 million per year

Caterpillar's Track-Type Tractors are

engineered for demanding work. Durable

construction is ensured for tough working

conditions. Cat Track-Type Tractors keep

material moving with the reliability and low

operating costs expected from Cat tractors.

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G&D Integrated Addresses Safety and Operational Concerns in Decatur

Business Issues:

Unaddressed safety issues were presenting safety

risks

5S was not a priority

Metrics were not fully deployed and utilized

Solutions Provided:

Implemented Repack area, creating “pick ready”

parts

Suggested and assisted in implementation of layout

and process flow improvements.

Implemented 5S housekeeping stations strategically

throughout kitting/repack operations

Designed and deployed “Visual Safety Awareness”

Posters on topics such as Blind Corners, PPE, and

Stop to Fix

Created and deployed additional metrics to drive

performance and accountability

Examples include kitting and storage lines per

shift and per employee, inbound receipt

tracking

Standardized manpower tracking for more

streamlined billing process

Created a process to quarantine and investigate

inbound “return” material prior to re-storing

Results:

Increased kitter velocity by 17%

Decreased risk of lifting injuries

Improved employee engagement in

operational metrics

Created a “Best Practice” for billing that

was replicated in other accounts

Gained visibility on return material from

point of use, reducing inventory record

inaccuracies and potential scrap charges

Thank You!