Syngenta transforms global logistics with digital operating model
Syngenta, a leading global agriculture company, has collaborated with Accenture to design and implement a new digital logistics operating model across all modes of transportation, including sea and air freight globally and road freight in North America and Europe. The model will enable Syngenta to more effectively manage increasingly complex logistics networks and operations with lower costs and higher service performance.
Syngenta won the 2015 Edelman Award from INFORMS for achievement in operations research and high-end analytics.
Accenture Strategy in collaboration with Syngenta Global Logistics designed a “4PL” global operating model that features a network of control towers coordinating regional and global transport orchestrated by external fourth-party logistics providers (4PL). These providers manage all transportation activities on Syngenta’s behalf, leveraging their detailed logistics expertise and regional market knowledge.
“In the current business environment, dominated by disruption, organizations need an operating model strategy that can totally transform how they deliver value to customers and shareholders,” says Bernd Kreutzer, managing director, chemicals and natural resources, Accenture Strategy. “Taking advantage of an expanded ecosystem to bring in capabilities from partners, and employing a combination of cloud and analytics technologies to enable data-driven decisions in real time, will help Syngenta drive innovation, efficiency and competitive advantage.”
The new model will enable greater visibility through insightful dashboards, connected through a hybrid cloud. This will provide Syngenta with accurate, timely information about its logistics operations, with the aim of improving business insights, transport planning and delivery performance for its customers.
“This new solution allows us to capitalize on external expertise that is outside our core business, bringing agility, global scale and simplification to our global logistics program,” says Marion Matthewman, head of Global Logistics at Syngenta. “This will facilitate quick reactions to changing market conditions and enable future growth. In the process, it will reduce transport costs, contribute to our targets for carbon footprint reductions and help create a stronger customer experience.”
The strategic initiative is powered by a cloud-based supply chain collaboration platform, provided by GT Nexus. This network connects Syngenta’s Enterprise Resource Planning Systems with its external logistics partners, holds all relevant data worldwide in a secure shared environment, and enables seamless data exchange and analysis. Syngenta will maintain the key logistics knowledge and data ownership for monitoring and governing these providers.
“Our collaboration with Syngenta to combine local expertise and centralized control brings the company one step closer towards having a world-class logistics organization,” says Matthias Hégelé, managing director for Resources at Accenture in Austria, Switzerland and Germany. “The consolidated global data allows for greater application of analytics to help Syngenta achieve business insights for efficiencies and cost savings.”
The global implementation across Syngenta’s two business units follows a successful pilot in North America and Europe in October 2015.
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