Bayer AG, known for its iconic brand Aspirin, is a global leader in agriculture, healthcare, and nutrition. With a 160-year history, the company has recently set out to reinvent itself, aiming to ensure health for all and hunger for none. This transformation involves an overhaul of its operating model to drive innovation and enhance the experience for farmers, patients, and consumers who rely on Bayer’s products.
At the recent LogiChem EU 2024 event in Rotterdam, Bayer’s senior vice president of supply chain, Rogerio Andrade, discussed the company’s shift from a reactive to a proactive supply chain strategy. Facing disruptions caused by the COVID-19 pandemic, including volatile demand, backed up containers, labor shortages, and geopolitical upheavals, Bayer recognized the need to build a resilient supply chain. This was exemplified by the Suez Canal blockage that prevented billions of dollars’ worth of cargo from passing through.
Andrade and his team, responsible for the Crop Science supply chain, implemented a multi-step program to measure, reduce, optimize, and innovate along the value chain. They created a Smart Data Center to consolidate and analyze supply chain data from various sources, enabling data-driven decision-making and proactive problem-solving. By leveraging smart data, Bayer was able to avoid sales dips and increased costs during recent attacks on vessels in the Red Sea, showcasing the benefits of their new approach.
The company’s decarbonization strategy, aiming to reduce its ecological footprint and meet Science Based Targets initiative emissions reduction goals, is also supported by the Smart Data Center. By optimizing operations, maximizing truck loads, and minimizing trips, Bayer is able to reduce costs and emissions. Additionally, the team works with regional partners to optimize freight transportation mixes, exploring options such as e-trucks for short distances and consolidating warehouses to reduce trips.
Bayer’s end-to-end approach to supply chain optimization not only benefits the company but also helps mitigate the ecological footprint of the agricultural industry as a whole. By embracing innovative technologies and data-driven decision-making, Bayer is paving the way for a more sustainable and efficient supply chain. This shift towards proactive problem-solving and resilience positions Bayer as a leader in the industry, driving towards their mission of ensuring health for all and hunger for none.
