Question: Part A ( 5 0 Marks ) AGCO is a leading global force in the manufacture and supply of agricultural machinery. The company grew substantially
Part A Marks
AGCO is a leading global force in the manufacture and supply of agricultural machinery. The company grew substantially over the course of two decades, achieving a considerable portion of that growth by way of acquisitions.
As commonly happens when enterprises grow in this way, AGCO experienced increasing degrees of supply chain complexity, along with associated increases in cost but for many wears, did little to address the issue directly, primarily due to the decentralized and fragmented nature of its giobal network.
In AGCO's leaders recognised that this state of affairs could not continue and decided to establish a longterm program of strategic optimisation.
Supply Chain Cost Reduction Challenges: With five separate brands under its umbrella, AGCO's product partfalio is vast. At the point when optimisation plarning began, sourcing and inbound logistics were managed by teams in various countries, each with different levels of SCM maturity, and using different tools and systems.
As a resul of the decentralised environment, in which inbound logistics and transpart management were sepsrate operational fields, there was insufficient transparency in the supply chain. The enterprise as a whole was nor taking advantage of synergies and economies of scale. These issues enisted against a backdrop of a volatile, seasonal matket.
Develap a strategic plan for the supoly chain function basped on the abjectives AGCO has longterm program of strategic optimisation Marks
Plecommend and justify an improwement plan to the supply chain inbound logistics and sourcing activities for their plants in North and Sauth American and Eurcae divisions Marks
How will you present and get buyin your recommendations and results in & Q to senior management? marks
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