About 250 Caterpillar Logistics professionals will help Mitsubishi Heavy Industries (MHI) and Shin Caterpillar Mitsubishi (SCM) achieve world-class supply chains.

MHI and SCM has made an agreement with Morton, Illinois-based Caterpillar Logistics Services Inc (Cat Logistics) for the US company to provide an integrated logistics solution to support their service parts operations in Japan.

Cat Logistics will manage construction of a 50,000 square metre logistics facility in Sagamihara, Japan near Tokyo. The facility will open in February 2008. Cat Logistics will provide "warehouse management, limited inventory management, transport management, packaging and information technology".

The agreement was reached after Cat Logistics conducted an 18-month study to provide detailed recommendations on how to improve MHI and SCM's Japan-based supply chains.

Cat Logistics provides supply chain solutions to its parent company, telehandler-manufacturer Caterpillar Inc, and more than 65 companies worldwide. It operates more than 105 offices and facilities in 25 countries.