CASE STUDY

Excellence in eSolutions 2015 Award Risk Management

“Excellence in eSolutions” is a prestigious annual prize awarded by BME – Bundesverband für Materialwirtschaft und Einkauf e.V., Germany’s largest and most renowned association for procurement and material management professionals.
Only one award is given per year, recognizing outstanding achievement in the field of procurement.

Scope of Risk Management activities

Supplier Risk

  • Purchasing and quality audits, incl. pre-qualifications
  • Integrated riskmethods supplier risk scores
  • Integrated Dun & Bradstreet risk scores (eRAM, Paydex, FSS)
  • ERM-style risk portfolio

GLOBAL SUPPLIER VISIBILITY

  • Multi-tier supply chains and complex suppliers
  • Self-registration & on-boarding
  • Documents/Certificates/Contracts with automatic reminders
  • Global supplier contact list
  • Normalisation of all local ERP supplier IDs to a single global ID

SUPPLIER COMMUNICATION

  • Direct access for suppliers, incl. results & performance
  • Development tasks

SAVINGS

  • Global tracking of all supply-chain related savings initiatives across projects and programs, integrated with supplier profiles.

Non-Compliane Reports

  • Global NCR reports, sync with external ERP systems
  • Flexible PPM calculations
  • Approval for individual plants and commodities

PROCUREMENT & QUALITY HAND-IN-HAND

  • Buyers and QMs have access to full supplier profile, clear lines of responsibility
  • Quality and procurement audits

Jury verdict

The concept: "Purchasing Transformation: anchoring risk management in the global purchasing strategy"

At AGCO, procurement has been undergoing a global transformation since 2012 to significantly and sustainably support AGCO's growth and profitability while continuing to ensure innovation, technology and quality leadership. The transformation also includes the establishment of powerful global material group and supplier management solutions that enable global commodity managers and buyers to pool experience and activities, make decisions based on transparent supplier performance, and identify economic, geopolitical and other risks and estimate.

By integrating process-based supply chain risk management into the global purchasing strategy, AGCO can monitor the entire process, from risk analysis and risk assessment to risk control and residual risk monitoring. Potential risks are identified at an early stage so that the ability to deliver is maintained through proactive action, compliance is ensured and the corporate image is not endangered.

Dr. Christoph Feldmann, BME Chief Executive Officer and spokesman for the BME jury: "Supplier risk management itself is not a new topic, but AGCO goes far beyond the usual approaches: risk management is anchored in the global purchasing strategy and is implemented using a fully automated, multidimensional electronic solution. The Supplier Risk Network program at AGCO covers the entire supply chain down to the subcontractor, and this supplier risk management is not just about the traditional financial risks. The focus is much wider and includes risk areas such as natural disasters, legal & compliance, CSR costs and quality for tier 1 and tier 2 suppliers, and the early warning system used and residual risk consideration allows for timely intervention, all of which is very innovative and essential especially in times of crisis. Combined with an ultra-short 48-hour program implementation time, zero training thanks to the 'fun to use' approach and a return on investment (ROI) within 12 months through targeted efficiency gains, this solution is not only innovative, but also exemplary, and therefore recommended for others Companies."

Source: BME Press release

AGCO &
Procurence

Our client AGCO, a Fortune 500 company, is a global leader in the design, manufacture and distribution of agricultural solutions with turnover of approx. $10 bn and well-known brands including Challenger®, Fendt®, GSI®, Massey Ferguson® and Valtra®

Reference

With the outstanding support from Procurence, AGCO has successfully developed and deployed a state-of-the-art Global Supplier Management solution in fewer than 12 months. The implementation speed, features and user friendliness of the Meercat platform was one of the key factors that helped us win the "Excellence in eSolutions 2015" BME Award.

AGCO Purchasing considers its innovative web-based tool, supporting our global ASPIRE Supplier Management initiative, a real value driver to achieve AGCO’s ambitious growth, profitability and customer perceived quality targets. The tool enables our global commodity and quality teams to measure and drive supplier performance and innovation while identifying and mitigating supply chain risks. The Procurence team does not only bring its systems expertise to the table but, even more important, a deep knowledge of modern supply chain management techniques. We value their professional team approach, flexibility and creativity.

Jan H. Theissen
Director Strategy & Methods, Global Purchasing, AGCO