ABB AND CATERPILLAR :KEY ACCOUNT MANAGEMENT

Submitted by: Group - 4 Mukesh Meena Manik Kansal Satyajit Mohanty Aman Singh Gotra Akasheep Singh
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Introduction
ABB
Swiss- Swedish engineering group, World leader in power & automation technologies Supplying utility and industry customers with product & service.
Five business division:

Process automation product portals- (Turbocharger) Power product division. Power system division. Automation product division. Robotics division

Cont..
CATERPILLAR
Worlds leading manufacturer of construction & mining equipment, diesel & natural gas engine & natural gas turbines Two Plants Lafayette, Indiana Kiel, Germany Cater pillar had three segments: achinery. M ngine. E inancial product. F `Sales & Revenue - $36.3 billion
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Buyer Supplier Relationship Between ABB & CAT

ABB earned US$ 67 million in revenue from Caterpillar (turbochargers supplies) Supplies of turbochargers were from best run and most efficient plants owned by ABB Caterpillar among top 3 customers of turbo systems amounting to 30 % of sales

KEY ISSUES
In 2004 Business between caterpillar and ABB was on the verge of closure Reason - Big disconnect between management and customer Caterpillar not satisfied with ABBs delivery support ABBs unwillingness to compromise on deliveries and price Conflicts in services approaches and issues of Intellectual property rights as Caterpillar had own manufacturing facility for turbo designs

Key Account Management Strategy

Skills and capability development Products and services portfolio Need Assessment Delivery of solutions Exceed Expectations

Understand Customer Needs

Support and Services

Help Them grow sales and income Be a partner not just a supplier
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Customer Value Creation

Key Account Management

Analyze Account

Rank account on improvement potential index Understand account requirements and capabilities Plan action to fix problems Target account goals

Tie account teams incentives with customer metrics

Review Account Tie account teams incentives with customer metrics

Set Account Objectives

Monitor performance against tactical plan Hold account team members accountable

Take Planned Action

Plan Account Strategy

Include Caterpillar in account planning process Develop both internal and customer targets Tie actions to improvement 7 opportunities

Recommendations
ABB can improve knowledge of account team about CATs business for cross-company team building Steering committee can ensure governance and coordination between teams across both the organizations Whole team, and not just the key account managers commitment is required in building relationships with the client and become more customer-centric Caterpillar needs to understand how ABB operates to improve existing relationship and find new opportunities to add value Change in ABBs position from a supplier to a partner can provide needed technical synergies and offer win/win opportunities to both of them
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