The two companies received the award from BVL International for successfully implementing their innovative concept to digitize the tractor and agricultural equipment manufacturer’s inbound supply chain.

The Initiative - Digitizing the inbound supply chain

Background
A growing range of acquired brands and products, and numerous manufacturing facilities, suppliers, and logistics service providers, had led to a highly complex inbound supply chain for AGCO.

Solution
To streamline and design logistics with sustainable efficiency, AGCO and 4flow successfully digitized the inbound supply chain in just 18 months total, after the new solution went live within the first 6 months. As a neutral 4PL service provider, 4flow continuously plans, manages, and optimizes the AGCO network, including 1,500 suppliers and 70 logistics service providers, using a standardized, cloud-based integrated Transportation Management System (iTMS) from 4flow.

“In 4flow, we have found a professional partner and a real expert on transportation management. It was also strategically important to us that we work with a 4PL that is 100 percent independent. 4flow is non-asset based, fully management-owned, and does not have strategic business relations with carriers,” said Buelent Ileri Director, Transportation & Logistics EAME at AGCO, in charge of the AGCO Smart Logistics initiative. 

Results
Resulting from the AGCO Smart Logistics initiative, the cooperation partners’ achievements include cost reductions of more than 25 percent across the inbound supply chain and a 10 percent increase in on-time delivery performance. The initiative’s accomplishments also include a 24 percent reduction in days of supply, a 14 percent cut in carbon emissions, and a 15 percent increase in process compliance.

“4flow provided us with optimal support with its competence in consulting, IT, and planning and management, enabling us to exceed the objectives we set,” Buelent Ileri of AGCO added.

The video about the digitization of the inbound supply chain at AGCO debuted at the ceremony for the German Award for Supply Chain Management 2016.

 

AGCO and 4flow were also honored with the “ELA Award – Project of the Year 2017“ for this initiative. Find more information here.

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