Mazda, Caterpillar Partner

Service-parts logistics agreement calls for Cat Logistics to assume DC operations in U.S., Canada

Irvine, CA Ñ March 11, 2003 Ñ Mazda North American Operations (MNAO) and Caterpillar Logistics Services this week announced they have entered into an agreement, effective immediately, to provide the distribution of service-parts and accessories to Mazda dealerships in the United States and Canada.

The multi-year service-parts logistics agreement calls for Cat Logistics to assume operations of MNAO's five U.S.-based and one Canada-based distribution centers.

Mazda's North American dealers will continue to sell and support Mazda products through existing sales and service channels. Cat Logistics will provide an array of logistics services to support these operations, with the goal of reducing Mazda's overall logistics costs. Services to be provided include warehousing, logistics information systems and inventory management, from forecasting to order fulfillment.

Fred Ehlers, vice president for customer service and parts operations for MNAO, predicted that by using Cat Logistics, Mazda dealerships and owners would benefit from a more accurate and efficient parts distribution and delivery system.

Steve Wunning, president of Caterpillar Logistics Services, said that by taking advantage of both companies' knowledge of distribution, and by applying Six Sigma methodologies, the companies would be able to implement best-in-class systems and processes that should help to improve service to dealers and customers and, at the same time, reduce costs throughout the entire distribution channel.

Mazda North American Operations, comprising Mazda Motor of America and Mazda Canada, is responsible for the sales, marketing, customer service and parts support of Mazda vehicles sold through over 850 dealerships in the United States and Canada. MNAO is headquartered in Irvine, Calif.

Caterpillar Logistics Services provides integrated supply chain services to Caterpillar and nearly 50 companies worldwide. Headquartered in Morton, Ill., Cat Logistics operates 86 offices and distribution facilities in 25 countries on six continents.