Sat. Sep 26th, 2020

We are entering an era in which companies can detect supply chain risks much more quickly than in the past. AGCO’s experience provides a case in point. AGCO is a global leader in the design, manufacture and distribution of a wide range of agricultural equipment. In a discussion with AGCO’s Jan Theissen, Director of Strategy and Methods, and Jake Stone, Manager of Supply Chain Risk and Contract Management, ARC Advisory Group learned about this public, Atlanta-headquartered corporation’s journey to improve their sourcing and supply base risk management capabilities.

The AGCO Case Study
AGCO’s products are marketed under a number of well-known brands, including Challenger, Fendt, GSI, Massey Ferguson, and Valtra. The company manufactures and assembles their products at 34 locations worldwide. Historically, each of these brands was managed as a separate supply chain. Further, because the company had grown by acquisition, these different supply chains used 10 different enterprise resource planning (ERP) solutions for direct sourcing.

Beginning in 2012, Mr. Theissen, the newly appointed head of procurement, led a transformation of the sourcing organization. AGCO moved from fragmented and decentralized procurement to a centralized commodity management structure to better leverage buying synergies and increase the overall maturity level of this organization.

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