IPIncrease Efficiency and Save Money by Ordering Cat Parts through Integrated Procurement (IP)

Benefits and Requirements of Cat® Integrated Procurement (IP)

Many Ohio CAT customers are automating their procurement and invoicing processes and integrating with supplier systems to streamline their operations and reduce transaction costs. Since 2001 Caterpillar has been an industry leader in the integrated procurement of parts by facilitating hundreds of connections between customer business systems and Cat® business systems. Customers who procure parts and receive electronic invoices through these connections often experience transaction cost savings of 50% or more, depending on their current processes. One customer’s process assessment showed that over half of their manual process steps were eliminated during the following processes:

· ordering

· shipping/receiving

· invoice reconciliation

· accounts payable

Cat Integrated Procurement (IP) provides :


  • Efficiency – Orders are placed from the customer’s business system to the Cat dealer’s system, reducing the customer’s manual effort and eliminating duplicate entry. Electronic invoices can then be sent by the Cat dealer to the customer’s business system and automatically reconciled with the original purchase orders.
  • Order Accuracy – Customers can select parts from several sources: o Caterpillar’s online parts manuals, o Frequent order lists created within PartStore™ Web, or o Their own business system’s list of Cat parts and prices.
  • Instant Information – Customers receive parts prices and availability instantaneously, such as for emergency orders, even after hours.
  • Automated Stock Replenishment – Customers with stocks of Cat parts and an appropriate system can automatically generate stock replenishment orders to the Cat dealer without manual intervention.
  • Cost Savings – These benefits can result in significant transaction cost savings for customers.

In order to obtain the greatest cost savings, customers who wish to pursue integrated procurement (also called IP or B2B) should have a relatively high volume of part orders with Ohio CAT and an ERP (Enterprise Resource Planning) or procurement system with the ability to send and receive XML documents over the Internet via HTTPS. Given these requirements, Ohio CAT can work with you to implement Cat IP within a few weeks to a few months, depending on your desire and commitment to reduce transaction costs.

To learn more about Cat Integrated Procurement, contact your Product Support Sales Representative.