Achieving targeted physical availability of equipment while delivering lowest cost of production is a priority for all mining producers. Built on a foundation of safety, the customer experience and financial success are heavily impacted by the efficiency, productivity, and predictability of an operation. In 2019, Caterpillar announced Customer Value Agreements or CVAs, a portfolio of innovative, flexible solutions that help maximise the value of a Caterpillar equipment investment.
Through partnerships with its worldwide Cat dealer network, Caterpillar Resource Industries 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 multi-year agreements with their Cat dealer, manage their risk, and run a more optimised 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 onsite, streamline operations, maximise uptime and reduce effort in ordering parts. CVAs can be tailored to accommodate many operations, geographical challenges and customer segments.
CVA frameworks successfully introduced to market 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 optimising 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 (global) – complete coverage of GET needs, best match for customer operation, on-site delivery, inventory management and assurance programs
Cat says customers globally are already benefiting from Cat CVAs on their equipment by using Cat genuine 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,” offers 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 says its CVAs “will continue to expand and evolve to be compelling service agreements positioned to meet customer needs throughout the machine lifecycle.”
