Supply chain challenges and how to manage them : AGCO Power: A Logistics perspective

AGCO Power is a manufacturer of engines, gearwheels, gearboxes and engine spare parts to the world's leading manufacturers of tractors and other agricultural machinery. In order to be successful in today’s global market environment, we must satisfy and exceed our customer expectations on all fronts. We need deliver products our customers want, fast and with competitive prices. Our supply chains become more and more complex and at the same time continuous cost savings are required to maintain competitiveness. Supply chain management is more vital today than ever before and we must design our supply chains to manage all challenges it faces but also gain competitive edge by intelligent supply chain design. Research focused on underlying the current challenges for our supply chain management and what are the factors that drive these challenges. How are we able to manage these challenges and at the same time visualize, improve and optimize our supply chain management processes. Research was conducted by qualitative - and quantitative measures through interviews and company data analyses. With interviews we brought up challenges that our logistics experts were faced with in their day to day work and with data analyses we studied the reasons behind these challenges. We managed to disclose the supply chain challenge drivers and were able to bring forward solutions to improve our entire supply chain environment. With more intelligent strategy for our demand management and inventory we are able to stabilize demand and reduce complexity throughout the supply chain. We also created a tool to visualize and manage our supply chain management processes, create targets for material inventory and in return allow us to achieve better service levels and less disruptions for our production