AGCO Smart Logistics Closes Digital Gap
NEWS RELEASE
For ELA Website
AGCO Smart Logistics Closes Digital Gap
Receives European Gold Medal in Logistics and Supply Chain
AGCO’s Smart Logistics initiative receivedthe ‘European Gold Medal in Logistics and Supply Chain’ fromThe European Logistics Association (ELA) in Brussels. AGCO and 4flowwere recognized for theirefforts in digitalization and end-to-end integration of partners within AGCO’s international inbound supply chain. Late last year, AGCO and 4flow alsowon the renowned German Supply Chain Management award by the German BVL organization for their Smart Logistics initiative.
The ELA, a federation of 30 national organizations from across Europe, awards the most innovative logistics and supply chain transformation projectseachyear.The contest, which is often described as the Champions League of Logistics and Supply Chain Management, is played out amongst 30 award-winning projects from national competitionsThe ELA jury selected the AGCO and 4flow initiative as the best this year. The agricultural equipment company along with its fourth-party logistics service provider (4PL)were able to win the competition amongst incumbents to various industrial sectors.
This awardunderlinesAGCO’schosen path to not only provide market-leading products, but to support these products with the best and most innovative processes. It also shows that joint forces are key in makingadifferenceintoday'smarketplace.TheAGCOand 4flow supplychainteamisincrediblyproudofbeing recognized with the ELA award. TheintegrationoftheEuropeansupplynetworkwiththe4PLconceptwasarecognizedachievementbytheAGCO team and its partner 4flow.
TheAGCO Smart Logisticsinitiativeconsistsofinnovativeandcollaborativeprocesses building on anintegratedSupplyChainManagementIT solution and by joining forces with 4flow as itsneutral 4PL partner.A dedicated team at 4flow supports AGCO with continuous planning, management, and optimization of the inbound networks in Europe. The collaboration by AGCO and 4flow includes strategic network planning and inbound optimization as well as cost monitoring and reporting.Theapproachisbasedupontheprincipleofcombininganintelligenttransportationmanagementsystem,astandardizedsupplierdevelopment process,andriskmanagementintoacentralcloud-based ITsolution.Theinnovativeapproachutilizessmartalgorithmsthatdynamicallyoptimizethenetworkrequirementsholistically,includingcapacities,suppliershippingrequirements,lead-times,aswellasmonitoringawiderangeofgeopolitical,weather,andeconomicfactorsonareal-timebasisinordertooptimize thematerialflow.
Defined as one of the strategic corner stones in its Supply Chain Strategy thethreeessentialdriversof innovation forAGCO were based in its heritage of bringing the best of different brands together. Key drivers are:
1.Theintegrationofthecompany’sproductionandaftermarketsiteswhilecontinuingtomaintainitsmulti-brandstrategies.
2.Theimplementationofagloballystandardizedandintegratedfreightnetworkdeliveringasustainableperformancelevelofexcellencewhileprovidingtheagilityandadaptabilitytosupportglobalproductdevelopment,manufacturing,andaftermarketrequirementsinadigitizedenvironment.
3.Theabilitytoproactivelydetectandmitigatepotentialriskfactorsoccurringwithinthecompany’sglobalsupplynetwork
Theinnovativecollaborative approach ofinboundsupplychainplanningandcontrolwasrolledoutin20manufacturingandaftermarketsitesworldwide. AGCO worked closely withitspartnerand 4PL service provider 4flow.Together, the partners integratedmore than 1,500materialsuppliersandmorethan70logisticsservice providersaspartofthisinitiative.
This level ofintegrationenables an unprecedented dynamicplanningofthe inbound network in order to optimize costsandrisksonadailybasis.ByusingitsAGCOSmartLogisticssolutionthecompanyhas increased the synergies aswellasreduced globalsupplychainrisk. Withthis, AGCOenabledthechangetowardsahighlyintegratedvalueaddednetwork, which not ends at the factory gates but extends towards its supply chain partners.For AGCO, bigdatabecomesadriverforaddingvalue.
ThesolutionenabledAGCOtoreducecostoftheinboundsupplychainbymorethan25percentduringthepastyears.Furthermore,ontimedeliveryperformanceincreasedby10percentwhileprocessconformancehasincreasedby15percent.Paired with significant improvements in Supply Chain agility, the company generates a competitive advantage in the marketplace.Inadditiontothesignificantimprovementsincosts, performance and quality,theinitiative is reducing the CO2footprintthrough improved capacityutilization and therefore it not only benefits AGCO but the environment as well.
About AGCO
AGCO(NYSE:AGCO) is a global leader in the design, manufacture and distribution of agricultural solutions and supports more productive farming through its full line of equipment and related services. AGCO products are sold through five core brands, Challenger®, Fendt®, GSI®, Massey Ferguson® and Valtra®, supported by Fuse® precision technologies and farm optimization services, and are distributed globally through a combination of over 3,000 independent dealers and distributors in more than 150 countries. Founded in 1990,AGCOis headquartered inDuluth, GA, USA. In 2016, AGCO had net sales of $7.4 billion. For more information, visit company news, information and events, please follow us on Twitter: @AGCOCorp. For financial news on Twitter, please follow the hashtag #AGCOIR.
About 4flow
4flow provides consulting, software and services for logistics and supply chain management. 4flow consulting offers one-stop management consulting, concept development, and implementation support for logistics and supply chain management. 4flow vista® is the standard software for supply chain and transportation optimization. As a neutral 4PL, 4flow management handles the continuous planning, optimization, and operation of customers’ supply chain networks. 4flow research develops practical innovations and conducts supply chain research relevant to the industry. 4flow is a recipient of the German Award for Supply Chain Management 2016. For more information, please visit
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CHALLENGER FENDT GSI MASSEY FERGUSON VALTRA