CNH, Cat Logistics Extend Logistics Services Agreement

CNH Global N.V. and Caterpillar Logistics Services Inc. (Cat Logistics) have decided not to mess with success. The two firms have signed a long-term logistics services agreement that will make Cat Logistics the sole third-party logistics provider for CNH service parts in the U.S. and Canada. Cat Logistics also will manage warehouse operations. The two companies are near the end of a similar 10-year contract for agricultural equipment maker CNH's New Holland brand parts in North America. "The actions we are taking with this agreement reflect the commitment we have made to our dealers and customers to continuously improve our service levels in our parts logistics operation," says Tom Brockley, vice president of CNH North American Parts Operations. CNH implemented a single service parts management database across all of its North American parts facilities in January 2003, which it says sets the stage for the integration of all third-party warehousing operations. Caterpillar Logistics is based in Morton, Ill. CNH has U.S. headquarters in Lake Forest, Ill.