AGCO and riskmethods Win BME Award for Electronic Procurement Thomas Kase - March 30, 2015 8:11 AM | Categories: eProcurement / Procurement, Industry News, Procurement Strategy & Planning | Tags: General News, L1 We're pleased to share the news that a US company has received a German award for procurement excellence! In Dusseldorf, Germany, the leading (yes, really) German trade association BME (Bundesverband Materialwirtschaft, Einkauf und Logistik or "Association for Materials Management, Purchasing and Logistics") has awarded Georgia-based AGCO the 2015 "Excellence in eSolutions" prize. The ceremony took place during the sixth BME eLÖSUNGSTAGE ("eSolution days") in Dusseldorf on March 24. The BME event (with over 1,000 participants) is focused on technological solutions that drive visibility into supply chain – prices, quantities, quality, performance and risk aspects of suppliers. AGCO (which relies on the German company riskmethods to power its solution) won the award for their actualization of "Procurement transformation: anchoring risk management in a global procurement strategy." The "Excellence in eSolutions" award is intended to honor innovative achievements in the field of e-procurement – particularly those proven to significantly improve procurement performance and a company's results. True to a German outlook on managing companies, the degree of employee participation and change management used was also taken into consideration. The AGCO Corporation is headquartered in Duluth, Georgia, and is a $10 billion organization – the world's largest manufacturer of agricultural machinery such as tractors, combine harvesters, forage and seed drills, fertilizer spreaders, tillage equipment, storage systems and systems for protein production. The global purchasing organization within AGCO handles around $7B in annual spend. In 2012, AGCO started a global procurement transformation effort to enhance growth and profitability through ensuring continued innovation, deployment of technology and quality leadership. The transformation includes rolling out company-wide solutions in the area of materials and supplier management, enabling global commodity managers and buyers to pool experiences and activities to make decisions based on greater visibility into supplier performance as well as identify and assess economic, geopolitical and other risks. The last part is where riskmethods was instrumental with its supply chain risk management offering. The process-based supply chain risk management lets ACGO monitor risk analysis and risk assessment and mitigate risk based on actual observed risk activities. Potential hazards are identified early to enable proactive action, ensure compliance and reduce the likelihood of corporate image impact. Dr. Christoph Feldmann, BME CEO and spokesman for the BME jury, elaborated on the reason for selcting AGCO for this year's award: "Supplier risk management by itself is not a new issue. AGCO, this year's winner of the BME ‘Award for excellence in eSolutions,’ has gone well beyond usual approaches. Their risk management approach is anchored in a global purchasing strategy and is followed by a fully automated, multi-dimensional eSolution, whose information gets consistent exposure in all procurement decisions. The AGCO program's ‘Supply Risk Network’ covers the entire supply chain including sub-suppliers. This supplier risk management approach not only considers the more traditional financial risks. The focus is wider and includes risk such as natural disasters, legal & compliance, CSR, cost and quality for both Tier 1 and Tier 2 suppliers. The early warning system and residual risk-viewing enables timely intervention. All this is highly innovative and essential, particularly in times and regions of crises. In addition to an extremely short implementation time (a mere 48 hours) no training was required for the easy (even fun) to use solution. Adding a return on investment (ROI) within 12 months through targeted efficiency increases, this solution is not only innovative, but also a model we can recommend for other companies." Spend Matters has arranged an exclusive interview with AGCO's procurement leaders – as soon as they come back to the USA – and we will deliver a writeup on their program. Stay tuned! Related ArticlesRiskmethods: The Cool Risk Management Solution Provider You Probably Haven't Heard OfEbola and the Potential Supply Chain Impact – What is Prudent for Procurement?Supply Chain Risk Management and Supplier Risk Management are Converging-- and That's Good Discuss this: Cancel reply Your email address will not be published. Required fields are marked *Comment Name * Email * Website Notify me of follow-up comments by email. Notify me of new posts by email.