Paris Air Show
Aerospace |
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AlliedSignal
and Caterpillar Announce Alliance
Paris (June 17, 1997) -- AlliedSignal held a brief press conference today to announce its interesting new bedfellow: Caterpillar. AlliedSignal will be working with the Caterpillar Logistics Services division to improve its customer service in the aftermarket, according to company President Dan Burnham.. Representatives said the new arrangement would not be a partnership, defining Caterpillar Logistic Services' role in the alliance as a long-term supplier for the aerospace company.
Although both companies possess decidedly different backgrounds, Caterpillar Logistic Services President Steve Wunning used the conference to note the similarities between vehicles found on construction sites and those found on runways. As Steve explained, "With both Caterpillar equipment and aircraft, downtime is a competitive liability." Understandably happy with his company's recent orders for new products, including $543 million in deals announced this week, Burnham emphasized AlliedSignal's commitment to the aftermarket. In order to continue to be successful in that market, he announced, AlliedSignal will need to improve on it's logistics support. The AlliedSignal announcement stated that "An alliance enables AlliedSignal Aerospace to move quickly to market with enhanced performance, leverage the core competencies of two major players in their respective fields, share investment, lower technology risks by combining efforts and experience, and present a proven track record for service in meeting customers' global logistics needs." Caterpillar Logistics Services, Inc. is a wholly-owned subsidiary of Caterpillar Inc. and incorporates the worldwide distribution process of its parent company to help other companies lower their distribution costs while improving customer services. Current clients of Cat Logistics include Chrysler, Sun Microsystems and Rover Group Ltd., customers Wunning insists illustrate the applicability of Caterpillars distribution expertise to a variety of fields. Sales for the logistics company total around $3 billion, but Wunning acknowledged that the AlliedSignal alliance will make up one of its largest orders. Dan Burnham joked, "Steve said I'd be the first call he'd take every morning.' Representatives noted that talks have been ongoing for years between
the two companies. AlliedSignal plans to implement necessary logistic changes
business by business starting in Europe and then spreading to Asia and North
America. AlliedSignal said it will be unlikely the new alliance will result
in the closing of any of its current distribution facilities, although they
did admit some may experience a "redirection of functions." |
