BME Excellence in eSolutions 2015
We're pleased to share the news that a US company has received a German award for procurement excellence! In Dusseldorf, Germany, the leading German trade association BME (Bundesverband Materialwirtschaft, Einkauf und Logistik or "Association for Materials Management, Purchasing and Logistics") has awarded Georgia-based AGCO the 2015 "Excellence in eSolutions" prize. The BME event (with over 1,000 participants) is focused on technological solutions that drive visibility into supply chain – prices, quantities, quality, performance and risk aspects of suppliers.
AGCO won the award for their actualization of "Procurement transformation: anchoring risk management in a global procurement strategy." The "Excellence in eSolutions" award is intended to honor innovative achievements in the field of e-procurement – particularly those proven to significantly improve procurement performance and a company's results. True to a German outlook on managing companies, the degree of employee participation and change management used was also taken into consideration.
In 2012, AGCO started a global procurement transformation effort to enhance growth and profitability through ensuring continued innovation, deployment of technology and quality leadership. The transformation includes rolling out company-wide solutions in the area of materials and supplier management, enabling global commodity managers and buyers to pool experiences and activities to make decisions based on greater visibility into supplier performance as well as identify and assess economic, geopolitical and other risks. The last part is where riskmethods was instrumental with its supply chain risk management offering.
The process-based supply chain risk management lets ACGO monitor risk analysis and risk assessment and mitigate risk based on actual observed risk activities. Potential hazards are identified early to enable proactive action, ensure compliance and reduce the likelihood of corporate image impact. Dr. Christoph Feldmann, BME CEO and spokesman for the BME jury, elaborated on the reason for selcting AGCO for this year's award: "Supplier risk management by itself is not a new issue. AGCO, this year's winner of the BME ‘Award for excellence in eSolutions,’ has gone well beyond usual approaches. Their risk management approach is anchored in a global purchasing strategy and is followed by a fully automated, multi-dimensional eSolution, whose information gets consistent exposure in all procurement decisions. The AGCO program's ‘Supply Risk Network’ covers the entire supply chain including sub-suppliers. This supplier risk management approach not only considers the more traditional financial risks. The focus is wider and includes risk such as natural disasters, legal & compliance, CSR, cost and quality for both Tier 1 and Tier 2 suppliers. The early warning system and residual risk-viewing enables timely intervention. All this is highly innovative and essential, particularly in times and regions of crises. Adding a return on investment (ROI) within 12 months through targeted efficiency increases, this solution is not only innovative, but also a model we can recommend for other companies."
BVL Logistikpreis 2016 / BVL Logistics Award 2016
AGCO and 4flow are the winners of BVL’s German Award for Supply Chain Management.The two companies were recognised for successfully implementing their innovative concept to digitise AGCO’s inbound supply chain, which included 4flow taking responsibility for transport network design and optimisation and freight cost invoicing.
The so-called AGCO ‘Smart Logistics’ initiative is said to have achieved cost reductions of more than 25% across the inbound supply chain and a 10% increase in on-time delivery performance. It took 18 months to digitise the inbound supply chain, after the new solution went live within six months. AGCO’s network includes 1,500 tier suppliers and 70 logistics services providers and uses a cloud-based integrated transport management system from 4flow. The initiative’s accomplishments also include a 24% reduction in inventory, a 14% cut in carbon emissions and a 15% increase in process compliance. (Source: automotivelogistics.media)
Key pillars of AGCO's successful approach are