With 2020 sales and revenues of $41.7 billion, CAT Inc. is the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. Since established in 1925, the company have been driving sustainable progress and helping customers build a better world through innovative products and services.

In 1975, CAT sold their products to China for the first time, which marked their entrance to China. Over the next several decades, they set up several factories in China and continued expanding production.

In 2003, because of the remarkable production expansion, CAT needed to appoint a new Chinese supplier for genset. Having heard our professional sourcing service, they came to us for assistance.

CAT had high requirements to suppliers, so we did a lot of work in supplier searching and investigation. First, we chose Jiangsu and Zhejiang area, the center of manufacturing enterprises of China, as our target area. Then we screened a large number of manufacturing enterprises and made a short list containing 5 candidate suppliers. Next we conducted on-site investigations, and also conversations with persons in charge. After comprehensive analysis in company scale, production capacity, production experience and management level, we recommended BAOK Co., Ltd. as supplier and submitted Audit Report to CAT.

Then we organized tripartite meetings to further enhance mutual understanding between CAT and BAOK, in which we helped CAT and BAOK communicate on project scale, technical requirements, lead time, delivery and etc. Then after some rounds of price negotiation, the contract was signed.

The cooperation ran smoothly from prototype development to mass production thanks to the strong R & D capacity and advanced management of BAOK.

After 4 years of cooperation, a new challenge arose. CAT was under great pressure from the more and more fierce competition and had intention to substitute BAOK with a manufacturer offering lower price.

In consideration of the cost and uncertain risk of changing supplier while the project was mature and going well , we advised CAT not to do so and promised to help BAOK cut the cost to meet CAT ’s need.

Our project team containing technical persons and process manager settled in BAOK factory to assist them to optimize the whole production process and to eliminate, as far as possible, the cost resulted from non-value-added parts.

Finally, BAOK was able to make an offer in line with CAT ‘s expectation without loss of profit. From then on, the project has been running smoothly and we have always tried our best to solve every problem.