In 2019, Caterpillar announced customer value agreements or CVAs, a portfolio of innovative, flexible solutions that help maximize the value of a Caterpillar equipment investment. Through partnerships with its worldwide dealer network, Caterpillar Resource Industries said it is now expanding these service offerings to “deliver convenience, assurance and expertise while sustaining an exceptional customer experience throughout the equipment lifecycle.” CVAs represent a shift in focus to outcome-based value-added services, where customers can engage in multiyear agreements with their Cat dealer, manage their risk, and run a more optimized operation.
Cat CVAs for mining are dealer-to-customer service agreements on new or running equipment, guided by a common framework and value promises. They offer a range of support, performed by the dealer or customer, such as Vendor Managed Inventory, Cost-Per-Hour (CPH) and Cost-Per-Ton type payment structure options.
The CVA frameworks are developed to address customer interest in solutions beyond the iron that reduce risk, increase convenience on site, streamline operations, maximize uptime and reduce effort in ordering parts. CVAs can be tailored to accommodate many operations, geographical challenges and customer segments.
CVA frameworks successfully introduced in 2020-2021 are:
Maintenance for Mining CVA (global) – deliver the right parts at the right time, kitted for each maintenance interval, lowering total cost of ownership by optimizing drain intervals;
Hydraulic Hose and Coupling CVA (global) – for Cat or Mixed fleets – inventory management, trained dealer expertise, controlled costs with pay-per-use option;
Powertrain Guarantee CVA (launched in Australia, Europe, Indonesia and North America) – protection and assurance on load and haul machines, beyond the standard warranty and pay-per-use option;
Undercarriage CVA (global) – zero upfront costs, CPH options and scalable coverage from parts up to repairs and rebuilds on large track-type tractors;
Ground Engaging Tools (GET)/ Buckets CVA – complete coverage of GET needs, best match for customer operation, on-site delivery, inventory management and assurance programs.
Cat said customers globally are already benefiting from the CVAs on their equipment by using Cat parts (up to 50% longer component life with Cat filters), risk sharing guarantees (pay for the life achieved by the major components), flexible payment structures (allowing conversion of CapX to OpX), and predictive analytics through condition monitoring services.
“With more than 34,000 active CVAs registered (and growing) on Resource Industries equipment, we believe customers are finding significant value from these solutions,” said Marc Cameron, vice president of Resource Industries Sales, Services and Technology division. “A Cat CVA allows the customer to sign up for one or more of a holistic suite of value-added services in a way never seen or experienced before. Components are lasting longer, consumption of wear parts is lower, repairs and rebuilds are more predictable.”
Commercially available through Cat dealers today, Cat CVAs will continue to expand and evolve to be compelling service agreements positioned to meet customer needs throughout the machine lifecycle.
