How Bayer Crop Science grows logistics excellence via digitalisation

Johnny Ivanyi and Terence Leung
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Johnny Ivanyi: Bayer Crop Science, USA
Terence Leung: Blue Yonder, USA

Journal of Supply Chain Management, Logistics and Procurement, 2023, vol. 5, issue 3, 194-201

Abstract: Like most companies, Bayer Crop Science is facing increasing volatility on both the supply and demand sides. Materials shortages, increasing costs, transportation roadblocks and demand fluctuations create constant challenges. And the seasonal nature of the company’s business, which is based largely on regional growing seasons, leaves little room for error. Bayer Crop Science’s global logistics team bears the brunt of continuing to deliver on customer promises, profitably, despite these constant exceptions to plan. To maximise service, resiliency, sustainability and financial results, Bayer Crop Science needed to optimise its global transportation and logistics processes. The company was seeking to increase visibility and responsiveness to disruptions, as well as establish standardised worldwide practices and shared value that would lead to more fact-based, profit- and service-driven decisions. This was impossible while 350 facilities, in more than 70 countries, were using disparate tools, outdated legacy systems and manual processes to manage a logistics network that had become incredibly complex. Several years ago, Bayer Crop Science embarked on a digital transformation that establishes a common platform — Blue Yonder’s transportation management and warehouse management solutions — as well as standardised processes and workflows, across the company’s sprawling logistics footprint. While the transformation at Bayer Crop Science is still under way, transportation and warehousing operations in 64 countries have been digitalised. This paper describes some early results, including a 3–5 per cent reduction in overall transportation spend, a 7 per cent increase in asset utilisation, decreased environmental impacts and a cultural change that is making Bayer Crop Science employees both happier and more productive.

Keywords: logistics digitalisation; transportation management; warehouse management; digital transformation; supply chain volatility; artificial intelligence; machine learning; supply chain autonomy (search for similar items in EconPapers)
JEL-codes: L23 M11 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:aza:jscm00:y:2023:v:5:i:3:p:194-201

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