
Climate-friendly & resource-efficient manufacturing:
Fendt acts as a technological pioneer. In this position, we drive forward the decarbonisation of our production and continuously increase our resource efficiency.
Fendt takes responsibility for its upstream value creation. We will achieve a resilient and sustainable supply chain through targeted actions.
In a globalised world it is particularly important to organise supply chains to be socially and ecologically sustainable and to work closely together with suppliers when doing so. In order to have the greatest possible influence on our products and their composition, we traditionally rely on a high degree of vertical integration. For example, we produce our own gears instead of buying them in them. In 2020 alone, we integrated the front lower links as well as ten other components into our own production and now cut and install these components in Marktoberdorf ourselves. This saves emissions that would otherwise have been generated during transport. All the parts we manufacturer ourselves are now produced with 100 per cent green electricity.
We attempt to purchase parts that we do not manufacture ourselves regionally. 66% of our direct suppliers are based in Germany and a further 28% are in other European countries. But even if suppliers are close by, the type of transport has a great influence on the emissions generated by our company. In the last five years, we have managed to reduce our procurement emissions per transported kilo by 35 per cent. This has been achieved through an optimised combination of road and rail, using alternative drives such as natural gas, and intelligently combining delivery journeys.
And last but not least, we ensure the quality of the production parts delivered continuously rises. For example, between 2016 and 2020 we cut reject figures (the so-called PPM rate) by more than 63%, thus making an important contribution to conserving resources in our supply chain.
Managing our supply chain during the COVID-19 pandemic required particular attention, as was the case at many companies. But price fluctuations, extreme weather and climate change can also present supply chains with serious challenges. For this reason, together with our parent company, AGCO, we established the initiative “AGCO Smart Supply", which enables us to react to crises quickly and proactively across roles and brands. We were awarded the 2020 Innovation Prize by the Bundesverband Materialwirtschaft, Einkauf und Logistik e.V. (Federal Association of Materials Management, Purchasing and Logistics) for this initiative.