AGCO wins Excellence in eSolutions award

"Excellence in eSolutions" recognizes innovative electronic procurement (e-procurement) solutions that have significantly improved purchasing and supplier performance and/or a company's bottom line. AGCO took the award for its integrated supply chain risk management approach that was introduced as part of the purchasing transformation initiative. Through the implementation of tools supporting global material and supplier management, commodity managers and buyers globally will now be able to make decisions on the basis of supplier performance, as well as potential compliance, economic, geopolitical, and other risks. The adoption of a process-based supply chain risk management approach allows AGCO to track the entire risk management process from risk analysis and risk assessment to risk control and residual risk monitoring.

Dr. Christoph Feldmann, BME CEO said, “Supplier risk management itself is not a new approach. However, AGCO’s process-based risk management goes well beyond the usual approach. It is an integral part of their global purchasing strategy and a fully automated, multi-dimensional system enables AGCO to not only track data but also include it in their decision making. The system is called Supplier Risk Network and it tracks data for their entire supply chain, including subcontractors. And, the focus of AGCO’s supplier risk management is much broader than just financial risk, taking into account additional risk factors such as natural disasters, legal and compliance, CSR costs and quality of tier 1 and tier 2 suppliers. An early warning system and residual risk-viewing allows for timely intervention which is particularly important in times of crisis.”