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Published in:
2022 | OriginalPaper | Chapter
10. AGCO Smart Logistics: Transformation of a Decentralized Inbound Supply Chain to a Centralized 4PL-Driven Inbound Supply Chain
Authors : Bülent Ileri, Michael Bülow, Patrick Jansen
Published in: Project Management in Logistics and Supply Chain Management
Publisher: Springer Fachmedien Wiesbaden
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Abstract
Founded in 1990, AGCO is a leading global manufacturer of agricultural machinery with its four core brands Challenger, Fendt, Massey Ferguson and Valtra as well as its business unit AGCO Grain & Protein. The AGCO Smart Logistics initiative implemented by AGCO pursues the goal of increasing quality and resource efficiency in the inbound supply chain. Through the use of a 4PL approach coupled with state-of-the-art IT solutions, the supply chain organization, which was previously decentralized across the 10 European plants and based on heterogeneous processes, was centralized and standardized in a very short time. Resulting from the real-time availability of movement data, the company is able to control the flow of materials throughout the inbound supply chain at any time, optimize these flows on an ongoing basis and thus achieve cost savings of more than 25%. At the same time, performance has significantly increased through the integration of a risk management solution and standardized KPIs.