Following an exceptional year of COVID-driven supply disruptions, AGCO showcased how a strong agricultural industry and strong farmers demand on farm equipements require the supply chain to deliver what farmers need to feed the world. AGCO also honored two new Partner-level Suppliers and presented the 2020 Supplier Award Winners in five categories as well as the Supplier of the Year Award.
“Thanks to your relentless efforts and support, we were not only able to restart earlier and ramp-up faster than many others, but even to catch-up much of the lost production,” said Konstantin Meier-Kulenkampff, Vice President Purchasing & Materials, EME.
“Agricultural machinery is one of the best industries to supply to at the moment, and AGCO is a market leader in the tractor sector, with further growth of market share”, added Torsten Dehner, Senior Vice President & General Manager, EME. Mr. Dehner explained: “The COVID-19 pandemic continues to require our tireless, full attention, and given AGCO’s customers demand, we are counting on our supply base to provide our customers with the machines they are waiting for.”
Johann Nuscheler, a farmer from Bavaria and Fendt customer who runs a 3,000 hectare farm operation in Eastern Germany, said: “We expect reliable and affordable machinery. Purchase price is always a discussion. We want a much more modular system to create our tractor. Fendt has the best technology, but we don’t need it in every tractor.” Mr. Nuscheler added: “We expect AGCO to spearhead breakthrough technologies, such as autonomous driving and swarm technology.”
Kelvin Bennett, AGCO’s new Senior Vice President, Engineering, emphasized: “We will invest even more and at a faster rate than we have in the past.” He added: “We’re branching out into new areas. Our customers are changing, technology is changing, and we need to adapt. Our machines must become smarter, more connected, and have more automation features.” Mr. Bennett encouraged suppliers to share their “lowest cost ideas that bring higher value to our customers, and more business to you.” He thanked them for their perseverance, creativity and commitment to working with AGCO through all the recent challenges and to “keep our projects on pace for delivery.”
Josip T. Tomasevic, Senior Vice President & Chief Procurement Officer, explained:” the essence of any relationship is how well we collaborate, as a pre-condition to innovate and drive growth.” He added: “What has made us very strong is the end-to-end supply chain integration and visibility that starts and ends with the customer. The faster and more flexible we are, the better we will be able to serve our farmers.”
Mr. Tomasevic encouraged suppliers to use AGCO’s Supplier Idea Generation (SIG) program to share their ideas, and emphasized that AGCO is willing to share the gain. He invited suppliers to join the “Path to Partner”, to collaborate and innovate more closely with AGCO and be able to capture a larger share of AGCO’s growing spend.
During the event, AGCO honored two new Partner-level suppliers:
Erkunt and NGK
These suppliers have gone the extra mile with AGCO, demonstrating outstanding performance, quality, innovation, cost, delivery, service, and commitment by prioritizing AGCO in times of capacity constraints and helping AGCO keep its innovative leadership. Konstantin Meier-Kulenkampff explained: “Partnership goes both ways. AGCO’s Partner-level suppliers have an higher access to AGCO with a different level of collaboration.”
Supplier of the Year Award Winner: Italtergi
Italtergi went the extra mile to support AGCO during the most critical time of the first COVID-19 shutdown period in April, allowing AGCO to continue producing and supplying its farmer customers with their essential equipment.
Innovation & Collaboration Award Winner: Sonceboz
Sonceboz has been working together with AGCO for more than a decade, during which they have always strived to deliver the optimum in terms of quality, cost and supply.
Quality & Delivery Performance Award Winner: BMTS
BMTS has not only excelled by delivering their products defect-free and on time throughout the entire past year, but is dedicated to continuing on that path.
Aftersales Award Winner: Freudenberg Sealing Technologies
Freudenberg Sealing Technologies has been a supplier to AGCO since 1960, has been handling a high volume of fast movers and has contributed to AGCO’s Aftersales success with a lot of their own ideas to improve the supply chain and reduce complexity.
Logistics Service Provider Award Winner: Leinsle
Leinsle continued to provide reliable logistics services to AGCO. The continuity of their high-performance level is reflected by the fact that this is already their second award within a few years.
TRAIT Award Winner: Hammerwerk Fridingen
To AGCO, adhering to our core values and creating a diverse and inclusive environment is not only a priority within our company but also across our supply chain. To reflect the importance of our core values of Transparency, Respect, Accountability, Integrity and Team Spirit, AGCO created a new TRAIT award.
Hammerwerk Fridingen was awarded the first TRAIT award for integrating Diversity & Inclusion in their daily activities.