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AGCO Corporation’s vision: Building a globally digitised supply network
AGCO Corporation set a strategic vision that would deliver a globally integrated supply chain providing a competitive advantage in the global agricultural equipment marketplace. The vision was wide in scope and ranged from our customers to our external supply chains. The key benefits that AGCO planned to achieve with this strategic vision was very clear: to develop a globally integrated supply network that would deliver agility, flexibility, scalability, standardisation, innovation, increasing performance and cost efficiency. The actual results that were realised exceeded AGCO’s expectations in terms of productivity, financial results, performance levels, agility, scalability and global integration. The paper will provide readers with two insights into how AGCO’s internal culture focuses on innovation, from the initial concept through implementation. One element of the paper will provide insight into AGCO’s internal digitalisation with a deep dive into AGCO’s Google Glass utilisation. The second element of the paper will provide insight into AGCO’s connectivity across its global supply network of 3,000+ direct material suppliers, transportation service providers and 54 internal manufacturing sites. The paper will also provide readers with insight into how AGCO was able to generate a ‘pull approach’ to the implementation and roll-out of the new tools, processes, organisational approach and the new way to work. The initiative’s approach essentially created a culture of the manufacturing sites wanting to have the different digitalisation work streams implemented at their respective sites.
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Greg Toornman is the Global Vice President of materials, logistics and freight management at AGCO Corporation based in Duluth, Georgia, USA. AGCO, with revenues of over US$9.3bn in 2018, is a global manufacturer of agricultural equipment. Greg is responsible for leading the transformation of AGCO’s global materials and logistics functions into an integrated and innovative organisation providing a competitive advantage in the global marketplace. Greg has worldwide functional responsibility for all of AGCO´s materials and logistics management across 53 assembly and manufacturing sites, and leads a team of 420 salaried and 2,150 hourly team members. Greg assumed his current role in September 2012, after three successful transformational assignments within AGCO´s global purchasing organisation from 2004 to 2012. Previous AGCO assignments were based in Brazil, Switzerland and the US. Before joining AGCO, Greg served with CIENA Corporation in Baltimore, Maryland as the senior director of global supply chain, PACCAR´s Kenworth Truck Division in Kirkland, Washington as the division director of materials management, Peregrine Corporation in Toronto, Canada and Nippondenso Corporation in various operational and materials management roles. Greg received a Bachelor’s degree in industrial marketing and operations management from Western Michigan University in Kalamazoo, Michigan in 1992 and continued further development at Emory and Stanford University Executive Leadership programmes.
CitationToornman, Greg (2019, June 1). AGCO Corporation’s vision: Building a globally digitised supply network. In the Journal of Supply Chain Management, Logistics and Procurement, Volume 1, Issue 4.