Case Study: AGCO Corporation improves product cost accuracy and profit margins with SAP Product Lifecycle Costing

AGCO Improving Product Cost Accuracy and Profit Margins with SAP Product Lifecycle Costing

AGCO Corporation, a major agricultural equipment manufacturer, faced a challenge with its disparate and unique costing systems across more than 15 global engineering sites. This lack of a unified process hindered cross-country collaboration and made it difficult to gain accurate insights into product costs, ultimately affecting profit margins. To address this, AGCO turned to vendor SAP and implemented its SAP Product Lifecycle Costing solution.

Working with SAP Consulting and a partner, SAP provided a solution that integrated cost management by connecting five different ERP systems and engineering data. This deployment, achieved within seven months, created a single, globally accessible standard for cost calculations. The results included significantly improved transparency and collaboration, which saved time, improved target cost achievements, and is expected to lead to a significant reduction in product costs for new projects.

AGCO Corporation

Nils Franzen

Director Global Product Costing