Supply Chain World - Fall 2017 - 64

manufacturing & energy agco
www.agcocorp.com / Revenue: $7.4 billion / HQ: Duluth, Ga. / Employees: 19,795 / Specialty: Agricultural equipment / Greg Toornman, director of global materials, logistics and freight management: "We will be able to monitor the inbound flows and performance of 3,000 suppliers worldwide on globally standardized and real-time basis."

Very Smart
AGCO's Smart Logistics initiative has transformed its inbound
supply chain. By Chris Kelsch
Being a global leader in
the design, manufacture
and distribution of large
agricultural products
means there is a lot to keep
track of. AGCO products
GREG
are sold through the five
TOORNMAN
director of global
core brands of Challengmaterials, logistics
er, Fendt, GSI, Massey
and freight
management
Ferguson and Valtra, across
the globe. Its products
are distributed globally through a
combination of more than 3,000
independent dealers and distributors in more than 150 countries.
Greg Toornman, director of
global materials, logistics and
freight management, has been
with AGCO since 2004. He is
leading the global implementation
of the "AGCO Smart Logistics" initiative that dramatically improved
the performance of AGCO's
inbound supply chain in Europe.
"We started back in November
of 2013," Toornman recalls, "and
defined, 'In five years, this is where
we want to be.'" The vision was
defined and is being implemented
by a core group of AGCO Supply
Chain leadership.
Where AGCO wanted to be
was atop the leaderboard when
it comes to managing worldwide
logistics, particularly the inbound
supply chain. Though AGCO is
spread across six continents,
Toornman's team began in Europe
with the AGCO Smart Logistics Initiative, which at the time
64

Supply Chain World FALL 2017

represented 55 percent of AGCO's
worldwide revenue.
What Toornman's team managed to do was astounding, considering how they did it. Whereas
most supply chain teams in recent
years have made moves toward
simplicity by cutting down on the
number of carriers, AGCO did the
opposite. Utilizing a new innovative transportation management
system (TMS), the number of carriers actually increased from three
large 3PLs to more than 70 carriers
in Europe.
"What we did was really the
opposite of what many supply
chain teams are doing," Toornman
notes. "Nonetheless, with the help
of the new TMS, we were able to

AGCO's Smart Logistics initiative
helps manage the company's
agricultural product offering,
which is distributed to more than
150 countries .

really reduce cost and improve
overall performance."

Cost Reductions
Toornman and his team built an
integrated supply chain management IT solution by combining an
intelligent TMS, a standardized
supplier development system, a
supplier network collaboration
solution, and a risk management
system into a central cloud-based
AGCO Smart Logistics solution.
The AGCO Smart Logistics initiative uses algorithms that take
into account capacities, supplier
shipping requirements and lead
times, as well as monitoring a
range of factors, including weather
and other conditions, such as port



Table of Contents for the Digital Edition of Supply Chain World - Fall 2017

Contents
Supply Chain World - Fall 2017 - Cover1
Supply Chain World - Fall 2017 - Cover2
Supply Chain World - Fall 2017 - 1
Supply Chain World - Fall 2017 - Contents
Supply Chain World - Fall 2017 - 3
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