Supply Chain World - Fall 2017 - 67

agco manufacturing & energy

AGCO's Smart Logistics initiative
has received extensive industry
recognition.

and standardized demand and
supply planning platform. AGCO
is considering roll out plans
for SAP's Integrated Business
Planning suite. AGCO is evaluating SAP's Integrated Business
Planning (IBP) module at this
time. This platform would enable
AGCO to become more efficient in
responding to customer requests,
production planning, proactive
(internal and external) capacity management, and inventory
optimization. Currently, a typical
product that AGCO manufactures
could have anywhere from 8,000
to 16,000 components. This
level of complexity can be more
effectively managed through the
increased level of digitalization
and deliver an increased level of
customer satisfaction and market
competitiveness.
If a customer wants to change
from one product to another
version of that product, it could
take days to provide an updated
available to promise (ATP) date.
With the SAP IBP platform, that
could be reduced to mere minutes.
SAP's integrated business
planning module (IBP), will have
the capability to integrate AGCO's market intelligence, sales
forecasts, supplier capabilities,
and internal factory capabilities
for each product. "We will have
all the master data integrated on
one platform, and this will enable
AGCO to do 'what if' scenarios
much more efficiently than we do
today," Toornman explains. "So,
for us, it's a huge step forward."
Though Toornman does not have
specific dates yet, the roll out and
integration of IBP is currently being evaluated to support the future

supply chain planning needs of the
AGCO Smart Logistics initiative.
Developing and retaining talent
to utilize innovative tools is another key area of focus for AGCO.
"We work with the best university
supply chain programs around
the globe to develop talent." In
North America, Mike Clem, Vice
President of Purchasing for the
Americas and Toornman collaborate with Western Michigan
University's Integrated Supply
Management (ISM) program. The
WMU ISM program is ranked in
the top 10 in the world in a number
of rankings. The program develops
students that are ready day one
to contribute. "We start working
with the ISM students when they
are Sophomores and Juniors on
internships," Toornman explains.
Clem and Toornman, together
with a number of other industry
leaders, support the WMU ISM
programs future development
roadmap and activities.
Because Toornman has demonstrated consistent levels of success
over the years in a number of
Supply Chain Transformation
projects, he has been able to garner
much support across all divisions

within AGCO. "That comes with
time and earning trust from our
sites and business units. Having assignments based in Brazil,
Switzerland, China and USA has
provided a great understanding
of our customer needs on a global
basis," Toornman says. "Our
globally led organization supports
our network with innovative tools
and processes that enable more
efficient use of data that leads
to improved performance in a
large number of key areas. The
digitization of our global supply
network will continue to enable
a competitive advantage in the
global market place for AGCO
products and service levels to our
customers. AGCO is investing in
its supply chain in order to better
manage higher levels of complexity, drive global standardization,
enable real time adaptability, drive
down costs, and deliver increased
service levels to its customers on a
worldwide basis. The challenge to
drive continuous improvements
never ends, nor does our vision
to be the best at what we do. We
strive to be number one in overall
customer perceived satisfaction,"
Toornman explains.
FALL 2017 Supply Chain World

67



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
Supply Chain World - Fall 2017 - 4
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Supply Chain World - Fall 2017 - Cover3
Supply Chain World - Fall 2017 - Cover4
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