CLIENT CASE STUDY


Bayer CropScience: Supply chain transformation

Read how Accenture helped Bayer CropScience optimize its long-term structure and processes in order to transform and improve its supply chain performance.

Overview

Facing a number of challenges, Bayer CropScience (BCS) partnered with Accenture to optimize its long-term structure and processes to improve its supply chain performance. Working with Accenture, BCS has achieved numerous benefits, including the establishment of new supply chain organizations and a new global warehouse network.

Bayer is a global enterprise with core competencies in the fields of health care, nutrition and high-tech materials. Its BCS division has annual sales of approximately US$9 billion, and is a world leader in crop protection, nonagricultural pest control, seeds and plant biotechnology.



Opportunity

BCS was facing a number of business challenges, including:

  • A very complex planning environment due to long production lead times.

  • Increased working capital requirements, prohibiting the potential for additional business investments.

  • High inventories maintained at local markets and large finished-goods inventories vs. active ingredients (AI), limiting the ability to respond to customer demand changes.

  • Increased market volatility in the changing agrochemical industry, a strong dependence of sales on worldwide weather conditions and obligations to meet customer demands.

Accenture was chosen to assist BCS on this engagement due to its strong cross-industry and supply chain expertise, as well as its ability to deliver on its promises.

Solution

Accenture helped BCS define and set up initiatives to address the most immediate short-term targets. In addition, Accenture and BCS formed the TRUST project, in which they worked jointly to optimize BCS’ long-term structure and processes in order to improve and sustainably drive supply chain performance.

Accenture used established methodologies, together with its supply chain and agrochemical expertise, to benchmark BCS’ performance against its competition.

In addition to the direct scope of work, Accenture supported other initiatives related to the project, including master data management and systems assessment. Throughout the engagement, Accenture successfully teamed with both the BCS project members and consultants from Bayer Business Services, an internal division of Bayer that supports the company’s business and IT processes. This collaboration contributed greatly to the project’s success and was highly valued by the client.

Results

Working with Accenture, BCS has realized the following benefits:

  • The establishment of new supply chain organizations within BCS: A global push organization responsible for active ingredients planning and production; a regional supply chain organization responsible for formulation, filling and packing within a region; and a governance organization for business process management.

  • Differentiated product segmentation and forecasting, providing more transparency, clearer prioritization of demands and orders, and higher service levels for key products within the flexible pull supply chain.

  • The introduction of service level agreements and inventory key performance indicators, resulting in the reduction of inventories across the supply chain globally, regionally and within specific countries.

  • The establishment of a new global warehouse network, resulting in less stock keeping points and stock volumes for raw materials, AIs, intermediates and finished goods.

Bayer CropScience and Accenture successfully teamed on this engagement, positioning BCS to move to the next level of “best-in-class” supply chain and placing the organization on the path to high performance.