AGCO Smart Logistics - automotivelogistics.media · Development wheat prices ... Before AGCO Smart...
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AGCO Smart Logistics
Transcript of AGCO Smart Logistics - automotivelogistics.media · Development wheat prices ... Before AGCO Smart...
AGCO Smart Logistics
Agenda
Who’s AGCO? 1
Challenges for Logistics & Supply Chain2
Our Solution: AGCO Smart Logistics3
Focus: Transportation Management 4
Results5
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Since 25 years “Your Agriculture Company” …
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OUR MISSIONProfitable Growth Through
High-Value Customer Service, Innovations,
Quality and Commitment
Revenue 1990
$ 200 Millions
Employees
20,000 worldwide
Revenue Shares
OUR VISIONHigh-tech Solutions
for Professional Farmers,
Feeding the World
Revenue 2016
$ 7,500 Millions
Plants
45 on 5 continentsEAME: 56%
APAC: 5%
SA: 13%
NA: 26%
… Together more than 170 years of innovations in agriculture
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Solutions for grain storage & poultry equipment
Customized to fit your individual demand
The world most reknown tractor brand
Powerful machines for large scale application
Technology world market leader
We have come a long way …
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TECHNOLOGY
ADVANCES
AS POPULATION
GROWS
… seeing major progress in agriculture …
… and the continue our journey – Farming 4.0
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AGCO Fuse
▪ Fuse is our solution for connected farming and
precision agriculture
▪ Full connectivity across all machinery of small to large
scale farming business supporting the end-to-end crop
cycle
▪ Builds up an eco system around agricultural machinery
▪ Main goals: Higher output and overall improved
agronomics
Fendt MARS
▪ MARS is the abbreviation for Mobile Agricultural Robot
Swarms – our smart field robot of the future
▪ Small mobile units that execute planting, seeding or crop
protection tasks
▪ Autonomous, efficient, green and highly precise
▪ Main goals: Simplification and yield efficiency
Agenda
Who’s AGCO? 1
Challenges for Logistics & Supply Chain2
Our Solution: AGCO Smart Logistics3
Focus: Transportation Management 4
Results5
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Huge Challenges Require Radical Thinking …
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Brand Variety Rapid Network Expansion
Market Volatility Global Platforms
1994
1997
2002
2004
2011
HighLow
Europe
10 manufacturing plants
10 After-Sales locations
>3,000 DM suppliers
>7,500 Transport relations
Development wheat pricesUS$ per ton
Module standardization
Agenda
Who’s AGCO? 1
Challenges for Logistics & Supply Chain2
Our Solution: AGCO Smart Logistics3
Focus: Transportation Management 4
Results5
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Vision
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From traditional inbound logistics… … to AGCO Smart Logistics
Based on mentioned challenges traditional inbound logistics reached its limits.
As an enabler for our Smart Factories our logistics approach had to adapt.
Local
suppliers
Regional
suppiers
Global
suppliers
Building blocks of AGCO Smart Logistics
BUNDLING FORCES
INCREASE TRANSPARENCY
REDUCE RISKS
IMPROVE PERFORMANCE
Local
suppliers
Regional
suppiers
Global
suppliers
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… to the agile Inbound Supply Chain today
From the traditional inbound supply chain …
▪ Very limited cross-plant co-operation and bundling of volumes
▪ Fragmented implementation of leading practice logistics process
▪ Lacking competence of dynamically selecting and sustainably developing logistics service providers and suppliers
leading to inhomogeneous performance & higher cost
▪ Static planning of inbound supply chain with very limited sharing of future demand changes
Building block 1: Bundling forces (1/2)
Before AGCO Smart Logistics, we implemented harmonized inbound processes across our European
plants.
Strategic
planning
Network
optimization Dynamic
capacity
planningOperations
Freight
management
& audit Controlling
& reporting
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Building block 1: Bundling forces (2/2)
Scenario 1
Network managed
by AGCO
Scenario 3
Hybrid network
management
Scenario 2
Network managed
by 4PL
Before setting up AGCO Smart Logistics, a central team of supply chain experts thoroughly analyzed &
screened the market. Three options were at hand.
▪ Rapid implementation below 18 months and break-even less than 12 months
▪ High flexibility of planning activities and resources
▪ Very limited investment into IT necessary, transaction based operating costs (IaaS)
▪ Joint target definition & budget responsibility
▪ The AGCO/4flow-team acts as the internal logistics service provider for our plants
Strategic
planning
Network
optimization Dynamic
capacity
planningOperations
Freight
management
& audit Controlling
& reporting
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Building block 2: Increase transparency
Our Supply Chain Management solution combines our IT tools in the cloud and
allows AGCO to leverage the power of Big Data.
Intelligent Transportation Management System
Supply ChainRisk Management
AGCOPerformance Excellence
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Building block 2 & 3: Increase transparency & reduce risks
Capacity
Utilization
EmissionsService
ProviderSuppliers
Dynamic
PlanningReal-time
Process
compliance
PerformanceCont. Improv.
Reporting
Supplier
development
Intelligent Transportation Management System
Geo-political
developments
Finance
Nature risksOrganizational
changes
StrikesSupply ChainRisk Management
APEX AGCOPerformance Excellence
Our guiding light in the Big Data jungle
Network
Tracking
OTD
Internal & external influences
GPS
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Building block 3: Reduce supply risks
▪ Real-time visibility for
AGCO’s supply base
▪ Central compliance reporting
with quality, delivery and
performance
▪ Integrated 3rd party vendors
provide detailed financial
information
▪ Mapping AGCO’s tier 1
supply chain
▪ Fast reaction, due to up to
the minute information on
political changes, strikes,
supplier disasters etc.
▪ Prevent problematic
sourcing decisions
▪ Provides an overview of the
ever changing global
landscape
Supplier Monitoring Country Risk Maps
Risk Management @ AGCO
Supply Chain Transparency
Building block 4: Improve performance
Through continuous monitoring & controlling of on-time delivery (carrier) and process conformity,
processes have sustainably improved. Full APEX integration.
Performance Cockpit
Supplier Management &
Development
Non-Conformance (NCR)
Tracking & Reporting(internal & external)KPI Tracking & Reporting
Reporting & Tracking
of SavingsRisk Management
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Agenda
Who’s AGCO? 1
Challenges for Logistics & Supply Chain2
Our Solution: AGCO Smart Logistics3
Focus: Transportation Management 4
Results5
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Introduction 4flow
projects annually
around the world
100+
management-owned
100%
offices in Europe,
Asia, North America
and South America
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4flow – supply chain consulting, software and 4PL services
globally recognized
award-winning
company
Clients
20
team members globally
400+
Focus: Intelligent Transportation Management System
The Transportation Management processes and system by 4flow enables significant
cost savings through an integrated process and system landscape
Intelligent Transportation Management System
Focus
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OrganisationSystem
Process
Integration of planning and execution
Operative excellence can only be achieved in a structured
framework of continuous planning, execution and control
© 4flow
day1 year
or moreweekmonths
Transport
execution and
freight cost
management
Dynamic
balancing
Tactical
optimization
and route
implementation
Strategic
planning
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OrganisationSystem
Process
Integration of software modules
The underlying integrated IT system supports all
transportation processes from planning to execution
4flow management iTMS
4flow vista®
4flow vista® data center
4flow vista® analytics
Web-based module
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OrganisationSystem
Process
Maintenance and
validation of master
data
Visualization and
communication of
information
Analysis and
optimization of network/
transportation
Communication and
integration of supply
chain partners
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Integration through harmonized organisation
Key aspects and requirements for the smart organization to implement
and manage the processes and system
OrganisationSystem
Process
Centralized
Functions
Smart People
Focus on
Performance &
Cost Reduction
Process and IT
Competence
Senior
Management
Support
Supply Chain
Organization
Integration through digital transformation
Digitalization connects suppliers, carriers, AGCO sites and the 4PL to an integrated
supply chain management approach
AGCO sites
iTMS
Carriers
Suppliers
Information exchange only visualized exemplary 25
Supply chain volatility
Supply chain volatility is driving the demand for an integrated planning approach
▪ Volatility on daily shipments
▪ Changes in volume, HUs,
weight on a daily level
Shipment
VolatilityDynamic Balancing
▪ Long- and midterm volume
changes / trends
▪ Changes of sources, nodes
and drains in the network
Network
Volatility
Strategic
Planning
Tactical Planning
Approach to handle
volatility
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Development of transportation costs
Average transportation costs can only be reduced sustainably by taking an
integrated management approach
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Use Case 1: Tactical planning on future transportation forecast
Result: Cost optimal network configuration can be maintained in a volatile environment
Milkrun
FTL
Forecast based
planningPlanning on
historic data
GroupageTra
nsp
ort
atio
n v
olu
me
Time
Changes in optimal shipment mode
Identification of required change New routing implemented
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Early identification of volume changes and proactive tactical planning lead to reduced
transportation costs
Use Case 2: Proactive exception prevention
Proactive performance management enables early exception prevention
Exception
Handling and
Documentation
Analysis and
pattern
recognition
Actions to
prevent
future
exceptions
Data
processing
and storageActive
Performance
Management
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1
2
3
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Use Case 3: Proactive exception prevention
The supplier and carrier improvement process effectively supports the reduction of
exceptions
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Definition of exception
types, categories and
reasons codes Constant documentation,
categorization and root
cause pattern analysis
Agenda
Who’s AGCO? 1
Challenges for Logistics & Supply Chain2
Our Solution: AGCO Smart Logistics3
Focus: Transportation Management 4
Results5
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Implementation results
▪ 20 sites globally fully implemented
▪ > 70 carriers implemented
▪ > 1,500 supplier locations implemented
▪ > 8,000 transport orders handled per
month at current volume
▪ >350 savings measures implemented in
2014 – 2016
▪ Big Data made accessible
Key achievements to dateSupplierConsolidationAGCO site
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Monetary and performance results
Vorher Nachher
before today
before today
Inventory
Days on hand
BVL / BME
Agility index
Transportation costs
and cost-saving
actions
Total Landed CostTransportation
conceptRate structureUtilizationDynamic balancing
before today
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NA: Q4 2016 – Q1 2018
EAME: Q4 2013 – Q2 2015
APAC: Q4 2016 – Q4 2017
SA: Q2 2017 – Q3 2018 One AGCO wide integrated solution by 2018
Next Step: Globally integrated and collaborative supply network
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Let’s stay connected...
Buelent Ileri
Director Transportation & Logistics, EME
AGCO International GmbH
+41 79 7374189
www.agcocorp.com
Exceeding Customer Expectations with AGCO Smart Logistics!
Julian Schulcz
Executive Vice President
4flow management GmbH
+49 173 6209719
www.4flow.com
Contact me on LinkedIn
Follow 4flow on LinkedIn
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