| DECEMBER 2010 DEALER INTERNAL USE ONLY | |||||
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REMAN SEED POLICY & PROCESS FOR MEGA ORDERS
Announcement
This IRM is intended to reiterate some long standing policies relating to seeding of Reman parts/components. It will address questions related to when and how machine down (Mega) orders will be seeded, and outline who dealers should contact if they have any questions.
Parts Availability Commitment
As stated in the Policies and Core Management guide (SELD0122), "AVSpare is committed to lead the industry in overall parts availability and customer service. AVSpare may fulfill this commitment by using new parts or components to help satisfy demand for Remanufactured Products (we refer to this as seeding with new). There are certain parts that cannot be seeded or filled with new because an equivalent new part does not exist. There are also certain major components that are not set up to automatically seed but can be manually seeded when there is a machine down or higher priority situation and Reman cannot be made readily available. These major components include:
- 3500/C175 Engines
- Final Drive Groups
- Transmissions
- Torque Converters
- Steering Clutches
- Mining Shovel Components
Stock orders for Reman parts are filled with Reman parts. If no Reman parts are available, the Reman part will backorder. If after 15 days, the Reman parts order is not filled, the dealer can replace their stock order with an emergency order with no additional service charges.
Reman parts ordered as an emergency order will be processed by first looking for the Reman parts available at each distribution center based on the dealers search sequence. For all seed eligible parts, if Reman parts are not found to fill the order, the search process will begin looking for the equivalent new part at each distribution center based on the dealers search sequence.
Reman components not set to automatically seed that are ordered as machine down (Mega) or for other higher priority situations where Reman is not readily available may be manually seeded. Regardless of the origin of the order, the manual seed process requires AVSpare Logistics Services (CLS) personnel based in Morton to make manual adjustments to the ordering system to allow the seeding to occur at the appropriate distribution centers. A local distribution center cannot simply fill the order with new or the invoicing will not be correct. The process required is outlined below in the "Manual Seed Process Controls".
Manual Seed Process Controls
When a Mega order is received that cannot be filled with Reman, the following steps are taken automatically before a decision is made to manually seed the Mega order:
- Customer services confirms locations/availability of all Cat Distribution Network Reman and equivalent New components
- If none available, customer services will look at dealer search to confirm material not available outside the Cat Distribution Network
- Customer services will confirm if any units have been allocated out to a distribution center and expected arrival.
- CLS Mining Segment Rep will contact production facility for earliest off-the-line availability
- CLS Customer Services will then communicate an estimated ship date back to the dealer that placed the order based on the information gathered.
- If that date is not satisfactory, CLS will communicate that to the CLS Mining Rep who will confirm/verify the Mega Down situation with the local Global Mining Rep.
- If Mega Down is confirmed and seed material is available that could improve on estimated ship date, the a CLS coordinator will be notified to make the system adjustments needed to allow the order to be seeded with new
Freight & Handling
It is expected that given the urgency associated with a Mega order, the dealer will want to have the component shipped in the fastest manner possible. When the decision has been made to allow the order to be filled with new, the dealer/customer is expected to pay the freight/handling charges from the distribution center which supplies the new (seed) component. If the dealer/customer decides the benefits of expedited delivery do not justify the additional shipping costs, the need to seed the order with new will be re-considered.