Materials Management

A globally integrated transportation management system (TMS) will link all AGCO regional and international shipments. The AGCO TMS will link all production and aftermarket sites globally. TMS was implemented in Europe in 2013-4, and will be rolled out to Asia in 2016, North America in 2017, South America in 2018, and Africa in 2020.

AGCO’s Supplier Network Collaboration (SNC) enables AGCO to collaborate and exchange information with our suppliers through an online portal. This system allows suppliers to use electronic data interchange (EDI) to receive orders from AGCO and also provides forecasting, order acknowledgements, invoicing, bar coding, advanced shipping notifications, and order change management. The system is currently implemented in North America and is targeted for global implementation by 2019.

If you are an existing supplier to AGCO, learn more here.

AGCO Corporation will monitor the Supplier’s delivery performance using AGCO’s globally standardized On Time Delivery (OTD) measurement process. The OTD measurement will occur at each location, and supplier OTD performance will be reviewed at a site, regional, and at a global level. The Supplier is required to maintain the minimum OTD target rating set at each location as defined in our Logistics agreements.

Capacity management is a new focus area at AGCO, and a globally integrated Global Supplier Capacity Management system will soon be available. This system will proactively manage potential capacity constraints, while also optimizing AGCO’s own internal assets. Suppliers will be asked to maintain their own available capacity levels at the part number level. This process will be integrated into our SNC module.

We expect to pilot this process starting in 2016 and plan to have all regions implemented by 2019.