AGCO wins European logistics award
June 6, 2017
by MM&D Online Staff DULUTH, Georgia — AGCO’s Smart Logistics initiative has won the ‘European Gold Medal in Logistics and Supply Chain’ from The European Logistics Association (ELA) in Brussels. AGCO designs, manufactures and distributes agricultural equipment and related services.
AGCO was recognized for its efforts in digitization and end-to-end integration of partners within AGCO’s international inbound supply chain. Late last year, AGCO also won the renowned German Supply Chain Management award by the German BVL organization for its Smart Logistics initiative. The ELA, a federation of 30 national organizations from across Europe, awards the most innovative logistics and supply chain transformation projects each year.
The contest is played out among award-winning projects from national competitions. This year, the ELA jury selected AGCO’s initiative as the best. Hans-Bernd Veltmaat, senior vice-president, chief supply chain officer, said, “The AGCO supply chain team is proud of being recognized with the ELA award.
The integration of our European supply network into our 4PL concept was a great achievement in cooperation with our partner 4flow. Agility, transparency, accuracy and lower cost define AGCO’s supply chain now.” The AGCO Smart Logistics initiative consists of innovative and collaborative processes building on an integrated Supply Chain Management IT solution and by joining forces with 4flow as a neutral 4PL partner.
The approach combines an intelligent transportation management system, a standardized supplier development process, and risk management into a central cloud-based IT solution. It uses algorithms to optimize network requirements, including capacities, supplier shipping requirements, lead-times, as well as monitoring a wide range of geopolitical, weather, and economic factors in real time. “The innovative collaborative approach of inbound supply chain planning and control was rolled out in 20 manufacturing and aftermarket sites worldwide,” explained Josip Tomasevic, global vice-president and chief purchasing officer.
“AGCO worked closely with our 4PL service provider 4flow and together we integrated more than 1,500 material suppliers and more than 70 logistics service providers as part of this initiative.” The solution enabled AGCO to reduce significantly the cost of the inbound supply chain during the past years. Furthermore, both on-time delivery performance and process conformance have been enhanced with great success.
In addition, the initiative is reducing the CO2 footprint through improved capacity utilization.