Agco América do Sul Improves Production Control While Doubling Number of Tractors Manufactured
 
Oracle 1-800-633-0738
Find an Oracle Specialized Partner
Oracle Customer Programs
 
 

Agco América do Sul Improves Production Control While Doubling Number of Tractors Manufactured

Agco is one of the world’s largest agricultural equipment manufacturers. The company offers a wide variety of tractors, harvesters, and sprayers, as well as hay, forage, and tillage implements and equipment. Its brands—including Challenger, Massey Ferguson, Fendt and Valtra—are sold through 2,700 authorized dealers and independent distributors in more than 140 countries.

Agco América do Sul, Agco’s South American subsidiary, celebrated a record year in 2010 by producing 100,000 engines, and it began investing in the production of power generators in 2011. During the past 10 years, Agco América do Sul has experienced rapid growth, doubling tractor production in Brazil. Strapped with legacy systems that control critical processes—such as accounting, engineering, and factory planning—the company needed a new enterprise resource planning (ERP) system capable of handling further growth without hindering customer service.

Ultimately, Agco América do Sul selected Oracle’s JD Edwards EnterpriseOne modules to meet its needs for a cost-effective ERP environment that can ensure data flows easily from various departments to the company’s 1,500 users. JD Edwards EnterpriseOne streamlined the company’s financial and manufacturing processes as well as provided management with comprehensive visibility into inventory levels and order status updates.

 
 

 
 

Challenges

A word from Agco América do Sul

  • “By combining Oracle’s JD Edwards EnterpriseOne Financials with JD Edwards EnterpriseOne Manufacturing - Shop Floor, we have realized greater control and visibility over production to properly serve customers in more than 140 countries.” – André Iriart Corrêa, IT Director, Agco América do Sul

  • Replace legacy ERP systems to ensure continuity of business processes that support the manufacturing of farm equipment
  • Support the company’s growth, as it has doubled its tractor production in Brazil during the previous 10 years
  • Maintain greater tractor manufacturing visibility to efficiently serve customers and properly control component inventories

Solutions

  • Worked with Oracle partner YKP to install Oracle’s JD Edwards EnterpriseOne Financials and JD Edwards EnterpriseOne Manufacturing - Shop Floor, which replaced a large number of interfaces and legacy systems—such as for accounting, engineering, product sales, spare parts, and factory planning—to ensure data circulates fluidly between ERP modules accessible to 1,500 users
  • Streamlined the company’s management and financial processes to enable doubling tractor production volume in Brazil without expanding the company’s administrative team
  • Acquired complete visibility into the manufacturing process from the moment a tractor enters the production line until the time it is completed
  • Enhanced inventory control, as the ERP system automatically identifies used component parts as soon as farm equipment leaves the production line
  • Enabled production management to analyze, in graphical format, requests and orders for their knowledge and to ensure better service to customers
  • Standardized and automated processes in the company’s offices and factories—including three in the state of São Paulo and two in Rio Grande do Sul—to enable improvements in planning, production, and billing
  • Migrated two companies—Valtra and Sfil—into the ERP environment within deadline and budget after they were acquired by Agco in 2004 and 2007, respectively
  • Used JD Edwards EnterpriseOne Expense Management to maintain cell phone costs and travel expenses within the company’s budget by defining limits for each user

Partner

  • Oracle Partner
    YKP

“We have worked with YKP since 2005, and its consultants continue to deliver great advice regarding JD Edwards EnterpriseOne modules,” said André Iriart Corrêa, IT director, Agco América do Sul. “We gradually implemented our JD Edwards EnterpriseOne environment, which enabled us to maintain our systems with internal resources. YKP always demonstrates a willingness to serve us whenever necessary.”