Caterpillar next-generation supply chain visibility

We built an asset tracking platform that provided real-time status and visibility across CAT’s global supply chain.

Problem

$2B+ in long-term inventory carrying costs due to inefficient outbound supply chain visibility.

Solution

A platform to monitor the supply chain and provide real-time operational insights.

Results That Drove the Bottom Line

$1B

In slack removed from outbound supply chain over the first year

68%

Improvement in delivery times from manufacturing plant to dealer

22+

Point improvement in customer 
Net Promoter Score in under 6 months

Our Process

To understand the core pain points and areas of opportunity for Caterpillar, Theorem needed to learn every aspect of their outbound supply chain process — from manufacturing plant to customer delivery. To do this we completed comprehensive internal stakeholder interviews, went on site to factories, warehouses, and dealers, and interviewed end-customers.

We then ran a series of innovation workshops to identify and design technology solutions to improve supply chain and financial visibility.

The Solution

Theorem helped Caterpillar transform their supply chain logistics visibility capabilities by delivering the first version of a production application in under 90 days.

The system provided end-to-end visibility through a combination of software and hardware components that enabled real-time asset tracking across international borders.

We leveraged existing legacy systems, and built new data aggregation tools to support the program’s objectives.

Questions which previously took days to answer were now answered in real-time.

The Hardware

Theorem sourced device manufacturing partners to meet the demanding requirements for a global, plant-to-delivery, supply chain solution — including battery time, GPS and cell connectivity, handling sensors, hardening, and ruggedness.
Theorem designed the shipping and logistics systems for deployment of tracking hardware into the field, including instructions for manufacturing floor teams to attach hardware to outbound product during device testing and qualification.

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