Suppliers are one of the most crucial elements to achieve performance excellence. AGCO fosters collaboration with our supply base, using objectivity and transparency to realize excellence. We ASPIRE to collaborate and improve our supply chain.
To better enable continuous improvement and to foster close collaboration, AGCO has introduced ASPIRE to foster a paradigm shift from typical customer-supplier relationships to value-added supplier partnerships. We invite all suppliers to join us, ASPIRE toward performance excellence: Achieve Greatness. Together!
AGCO supports long-term relationships with our supply base, and when looking for a new supplier, AGCO looks for strength and stability. We have high performance, quality, and ethical standards, and we expect our suppliers to meet those standards. Our Purchasing and Quality teams collaborate to assess new suppliers prior to establishing a business relationship to ensure that our expectations will be met.
Our top suppliers exhibit excellence in every day business activity. Transparency of expectations and visibility of performance lead to timely rewards for positive performance, and quick awareness to inefficiencies. In particular, we look at the following four areas:
3) Innovation & Collaboration
4) Commercial Terms & Risk
AGCO's expectations are available in the AGCO Supplier Performance and Relationship Excellence (ASPIRE) Guidelines.
Continuous improvement is a necessity of modern business, and AGCO’s supplier development activities proactively support our global supply base along the path of continuous improvement. AGCO collaborates with our suppliers to find business efficiencies that strengthen both AGCO and the supplier.
Stable, long-term supplier relationships are categorized into four classifications:
1) AGCO Partner — Exceeds performance standards and fosters innovation
2) Preferred Supplier — Achieves cost savings targets and provides AGCO with a competitive advantage
3) Regular Supplier — Meets minimum performance standards and contributes toward cost savings targets
4) Conditional Supplier — Fails to meet minimum performance standards, or new supplier
We look forward to the benefits that partnership can bring.