Farm equipment manufacturer brings in service provider to improve logistics productivity on a global basis

Irvine, CA  January 20, 2003  Farm equipment manufacturer AGCO has selected BAX Global's supply chain management group to manage its worldwide supply chain logistics business in a bid to improve its logistics productivity on a global basis.

AGCO, a $2.5 billion company based in Duluth, Ga., markets 17 brands in more than 140 countries. The company's brands include Massey-Ferguson, the most widely sold tractor in the world.

BAX Global, of Irvine, Calif., is a $1.8 billion transportation and supply chain management company offering mode-neutral logistics management for B2B shippers through a global network of more than 500 offices in 123 countries.

AGCO's new multiyear contract with BAX Global calls for the service provider to handle the manufacturer's worldwide third-party logistics (3PL) materials management, transportation management, freight forwarding, international inbound, customs brokerage, warehouse management, and freight payment and audit services.

AGCO selected BAX to focus on logistics productivity improvement on a worldwide basis. BAX said its team has already assisted AGCO with the implementation of $1 million in cost savings at its DeKalb, Ill., facility.

The contract's initial focus is for logistic productivity improvements in all AGCO North American plants. In Latin America, BAX has been working with AGCO's Canoas facility to manage logistics for complete knockdown kits of small farm tractors shipped to the rest of the world. BAX also is analyzing AGCO's materials management, distribution and import/export processes related to global distribution.

In Europe, BAX is analyzing the company's regional transport management services, spare parts management and internal logistics at its Randers, Denmark, operation.

John Carr, president for global supply chain management at BAX Global, said his company would be aiming to help AGCO achieve its goal of driving double-digit productivity.