Price fluctuations, weather extremes, climate change or even the COVID19 pandemic strongly influence global supply chains and require quick responses. In order to set up the supply chains at AGCO and thus also at Fendt in a crisis-proof manner, AGCO introduced completely new structures and processes in purchasing and supply chain management with the cross-brand initiative "AGCO Smart Supply". This initiative included cross-departmental and cross-functional teams as well as integrated IT structures and systems. These steps were decisive for the award of the "BME Innovation Award 2020". "The establishment of a cross-functional value network by purchasing that can react quickly when needed is a major competitive advantage. AGCO has impressively demonstrated how purchasing and supply chain management can be an important support for the company, especially in the event of a crisis," emphasized Christian Staab, Deputy Chairman BME and jury member. Due to the COVID pandemic, the award ceremony did not take place until this year.
"An important pillar for the company"
Cross-functional teams for rapid response
AGCO teams consist of Global Commodity Managers, Supply & Logistics Engineers, Material Managers and Supplier Quality Engineers. All roles report to the same umbrella organization. Common processes and defined key performance indicators (KPIs) and targets apply to all. The newly created roles of Supply & Logistics Engineers play a particularly important role in the event of a crisis. They are present in the respective procurement market and coordinate across plants, such as volume allocations with global suppliers.
The benefits of AGCO's Smart Supply Initiative have been clearly demonstrated over the past two years. "Transparent, cross-plant and cross-functional communication to our supplier partners has been the success factor of AGCO Smart Supply - especially during the pandemic period. With their commitment and self-confident actions, every single employee has helped to secure the supply of production materials and ensure the stability of production," explains Wolfgang Geiger, Director Purchasing Fendt.
The close relationships between suppliers and AGCO employees, as well as the cooperation within the teams, have proven their worth in the event of a crisis. "We are very proud of this award. The award is due to all the supply chain teams who work hand in hand every day to ensure supplies to our plants," adds Sabine Gutbrod, Manager Supply Chain Fendt.
About the BME Innovation Award:
With the BME Innovation Award, the German Association for Materials Management, Purchasing and Logistics e.V. (BME) has been honoring successful, innovative purchasing and logistics management since 1986. From the group of companies submitting concepts, the jury nominated AGCO International GmbH, Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH and Deutsche Milchkontor for the second round in October 2021. Thanks to its convincing concept, AGCO International GmbH emerged as the winner in the final elimination. The winner is traditionally presented to the public at the BME Purchasing and Logistics Symposium.