Question

you should pharaprase the case study in your own words and make it simple business words , and as you can see their are 10 parts so when you are going to pharaprase it please mention  its  for which part exactly so i can understand.

Part1 AGCO Corporation is a global leader in the design, manufacture and distribution of agricultural equipment offering a full range of solutions under the core brands of Challenger, Fendt, GSI, Massey Ferguson, and Valtra. Over the years, AGCO has been an extremely acquisitive company on a global basis.

Part2For many years, the supply chain operations continued to get more and more complex as the company grew. The initial focus on operational synergies was focused on production and purchasing. AGCO was migrating to a global equipment platform where they could build similar products around the world with a global supply base.

Part3An initial conclusion was that inbound material logistics and freight management should not be run as separate operations. There were synergies that could be captured by running these operations together on a globally integrated basis. AGCO was also looking for a global transportation strategy that would be fully implemented across all regions by 2018. The regional teams were brought together to discuss strategy and define a future state

Part4The company also engaged in SCOR transportation benchmarking to provide an objective view of their regional and global capabilities. “We knew we needed company-wide buy-in based upon company-wide involvement, “Mr. Toornman said. “The regions were involved in designing the future vision and the decision making. We needed to make sure everyone was on board. This was very important! So, as we looked at our options” to improve the transportation process.

Part5They knew the final solution was likely to be a globally integrated transportation management system (TMS) capable of running in all regions of the world, a 3PL providing managed transportation services (which also relies on TMS technology), or a blended solution that was bit of both. Getting everyone on board upfront would help AGCO avoid customization and inefficiencies based on a lack of alignment. In 2013, their business case to work with 4flow in Europe was approved.

Part6Within 18 months, the solution was up and running across the continent. 1500 suppliers were using a portal to schedule shipments to AGCO factories or warehouses used to support inbound shipments to the factory lines and aftermarket distribution centers. The suppliers submit their transportation orders (load details/destination) into the 4flow system by 2pm each day. Once the 4flow Control Tower team receives the transportation data they need, they optimize the transportation plan for the following day’s pick-ups.

Part7 Carriers then receive load tenders and confirm back to the TMS. Suppliers then receive notifications from the TMS defining the pickup time that suppliers are asked to have goods staged and ready to load on a trailer,or have filled drop and hook trailers for the following day. SAP’s Supplier Network Collaboration (SNC) solution is being integrated into the TMS to better optimize future inbound material flows, inventory levels, and costs. The savings have come in many areas.Strategic Logistics Purchasing has been a potent source of savings, responsible for perhaps 25 to 30 percent of the reduction in freight costs. Whereas in manufacturing and purchasing, their global platform strategy is driving to a reduced number of suppliers with bigger shares of AGCO’s business, the opposite was true in transportation.  Part8More than 50 percent of freight savings result from optimization. The solution looks to cube out or weigh out trailers, looks for load consolidation and mode shift opportunities, and designs multi-stop shipments. The multi-stop shipments look to combine less-than-truckload (LTL) shipments from different suppliers and increase milk run utilization. This both drives down costs and carbon emissions.

Part9There are also saving and efficiencies from the self-billing functionality, which helps eliminate carrier overcharges and audit costs. When a carrier agrees to a rate on a lane, that is what they are paid. The carriers’ create their invoices in the 4flow portal, where the invoice will be accepted if it matches the negotiated rates that are in the route rate sheets

Part10 Demurrage and detention charges can be an exception. “But this is flagged up front.” If there is a supplier issue, AGCO can take the appropriate action. For example, maybe the supplier did not have their goods staged on time; AGCO can charge them for the demurrage. One thing that is distinctive about the 4flow integrated TMS is that the same solution is used for both network design and day-to-day transport optimization.

Part11Going forward, AGCO is seeking to capture more savings in this area. Many large shippers do network design projects on a preset schedule. For example, a company may do them once a quarter. But because Network Design is part of the same codebase as the TMS, the 4flow team can do new network designs for AGCO on an as-needed basis.

Answer 1

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Part1 AGCO Company is a market pioneer in agricultural machinery design, production and sale, delivering a wide spectrum of products under the main brands of Challenger, Fendt, GSI, Massey Ferguson and Valtra. Over the years, AGCO has been a globally highly acquisitive firm.

Part2 The supply chain processes proceeded to become more complicated for several years as the business expanded. The main emphasis on organizational synergies was on development and procurement. AGCO was moving to a multinational network of equipment where they will develop identical goods for a common supplier base across the globe.

Part3 An early finding was that the transportation of inbound goods and the handling of freight could not be handled as independent activities. By operating these activities together on a internationally interconnected basis, there were synergies that could be identified. AGCO has pursued a regional transport plan that will be completely applied in all regions by 2018. Regional teams convened to formulate policy and identify a potential condition

Part4 The organization also engaged in benchmarking of SCOR transportation to have an unbiased view of their national and global capabilities. "We understood that we wanted a business-wide buy-in focused on interaction around the organization," Mr. Toornman has said so. "The areas were active in shaping the vision for the future and taking choices. We had to see to it that everybody was on track. This has been really necessary! Therefore, when we looked at our choices "to boost the method of transport.

Part5 I realized that the ultimate approach was likely to be a internationally distributed transportation management system (TMS) capable of working in all regions of the world, a 3PL delivering controlled transportation services (which often depends on TMS technology), or a hybrid approach that was more of the two. Having all on board beforehand will help AGCO escape a loss of cohesion focused on complexity and inefficiencies. In 2013 their business case was accepted for operating with 4flow in Europe.

Part6 The plan was up and running around the island within 18 months. A database was used by 1500 manufacturers to arrange shipments to AGCO factories or warehouses to help inbound shipments to factory lines and aftermarket delivery centres. Suppliers send their transport orders (load information / destination) to the 4flow network every day by 2 pm. When the 4flow Control Tower team gets the transport details they require, they refine the transport schedule for the pick-ups on the next day.

Part7 Carriers are then given load tenders and reported back to TMS. Vendors also provide notices from the TMS specifying the delivery date when vendors are required to have the products packed and ready to be loaded into a truck, or to have the next day filled in drop and hook vehicles. For help predict future inbound supply movements, inventory volumes and prices, SAP's Supplier Network Collaboration (SNC) approach is being implemented into the TMS. Savings have come in other ways. Strategic Logistics Sourcing has become a strong driver of savings, probably accounting for 25 to 30 per cent of freight cost reduction. Although their global marketplace approach in manufacturing and purchasing is pushing a reduced number of suppliers with greater shareholdings in AGCO's company, the reverse was true in transport.

Part8 Optimisation factors in more than 50 per cent of freight saves. The system aims to cube out or weigh up containers, searches for possibilities for load reduction and mode change, and designs multi-stop shipments. The multi-stop shipments aim to integrate less-than-truckload (LTL) shipments from different sources and maximize the efficiency of milk lines. It all brings prices down and greenhouse pollution down.

Part9 The self-billing feature also provides savings and efficiencies which help to reduce carrier overloads and audit costs. If a carrier agrees to a lane fee, this is what they get billed. The carriers generate their invoices in the 4flow database, where they approve the invoice if it meets the agreed prices in the route rate sheets

Part10 Fees for demurrage and imprisonment could be an exception. "So that's marked up front." AGCO will take the necessary measures if there is a supplier problem. So the retailer does not get their products packaged on time, for example; AGCO will compensate them for the demurrage. Another aspect that renders the 4flow optimized TMS unique is that the same approach is used for both network architecture and day-to-day transport optimisation.

Part11 AGCO is aiming to gain more benefits in this region in the future. Most broad shippers conduct network construction tasks according to a predetermined timetable. A business might do them once a fifth, for example. Yet since Network Engineering is part of the same codebase as the TMS, the 4flow team will be able to do just as-needed new network projects for AGCO.

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