Today’s supply chain is full of challenges.
Disruptions such as geopolitical tensions, climate change and the lingering impact of the pandemic have all had their respective impact on organisations and their strategies. As a result, supply chain and procurement leaders have been propelled to the top of the c-suite and are making key, strategic decisions to drive tangible impact on a company’s strategy. Quite the rise to the top for a function traditionally hidden away out of sight.
Supply chain transparency
According to Johnny Ivanyi, Global Head of Logistics at Bayer Crop Science, one of the main areas he is focused on revolves around improving the transparency and visibility of the entire end-to-end supply chain. “I want to remove silos between system and process because Bayer to improve the performance of the operation as a global company,” he tells us. “The big question is how you can transform these dots of information into complete end-to-end connectivity and we call this ‘Smart Centre.’ You have to build transparency but also at the same time you have to ask how you can ensure real-time tracking in order to make the right decision. How can my team on the ground and the field make the right decision at the right time?”
The Bayer Crop Science division is a world-leading agriculture enterprise with businesses in seeds, crop protection. The crop protection/seeds operating unit markets a broad portfolio of high-value seeds, while also providing extensive customer service for sustainable agriculture. The global supply and logistics team manages a large worldwide and local network of LSPs and suppliers to provide the ingredients necessary to make their products.
Data-driven supply chain management
In 2024, Bayer Crop Science chose a solution to provide their Supply Command Centre. Bayer joined the Digital Supply Chain Network to take advantage of a large and growing ecosystem, bringing efficiency, reliability, agility and predictability to their global supply chain operations. Speaking at the time of the announcement in 2024, Ivanyi said: “We have great expectations that this new platform will support us to improve our customer experience and our logistics operations throughout the entire global supply chain network.”
Ivanyi joined Bayer in August 2019 and today leads the global supply chain and logistics strategy. As part of his role, he is driving the logistics transformation across regions by identifying, assessing and implementing innovative, best-in-class strategy methods and new technologies. These include Global Transportation Management Solutions (TMS), Global Warehousing Management Solutions (WMS), Last Mile Visibility, and Logistics Smart Centres, such as business intelligence and data analytics. He explains that another important item on his agenda today is change management amid the rise of new innovations entering the marketplace. “We have different generations in logistics so how do you share with your teams that there is a change in the mindset of the way of working? It’s not about show-and-join experience, but about making the right decisions with data,” says Ivanyi. “The final element is data connecting with generative AI (GenAI). The big challenge is balancing and prioritising everything.”
GenAI journey
Indeed, GenAI has become one of the biggest buzzwords in the supply chain and procurement space amid a significant industry-wide boom. Automation and the acceleration of new digital tools are transforming how companies operate and do business. However, one of the biggest questions within the industry today is how mature is this technology and how many use cases are there? In Ivanyi and Bayer’s case, they can back it up.
“We actually have several use cases — at least four or five in logistics and supply chain that we’re actively working on,” he reveals. “One key use case is maximising on-time delivery in our go-to-market strategy, from our distribution centres to customers. We’re leveraging machine learning and generative AI to analyse provider performance over the last two to three years, helping us predict their reliability today. For instance, if a provider has shown consistent delays in a particular route, we can anticipate issues and take proactive measures.
“Another use case is within warehouse operations. Even though our organisation operates on a 3PL outsourcing model, we’re working on improving real-time warehouse visualisation—connecting inventory management with payment performance. The goal is to bridge the gaps between systems, improving operational efficiency.
“A third major initiative is track-and-trace visibility for our 40,000 ocean containers worldwide. We rely on manual uploads to track container locations across multiple providers and platforms. We are exploring how GenAI and automation can eliminate human intervention while ensuring seamless system integration. The objective isn’t to replace people, but rather to enhance system interoperability and reduce manual workload. These are three of our most critical use cases, and while we have several proofs of concept underway, these remain top of mind for us right now.”
Mitigating challenges
Bayer is partnering with Gartner on its digital roadmap, and following a recent in-depth conversation, how to unleash the power of data was heavily discussed. According to Ivanyi, there are several key areas tied to success within data analytics. “If you have the right data, clearly understand your use case, and define your desired outcomes, you create a strong foundation for success. These three elements—data, use case clarity, and outcome alignment—are crucial,” he tells us. “We also believe in a step-by-step approach, starting with proof of concept. Rather than tackling everything at once, we begin with a single warehouse or distribution centre and scale up from there. However, the biggest challenge remains data, especially given the complexity within our ecosystem. As we transition to S/4HANA, we must also integrate various satellite systems.
“In my view, the key to generative AI success is having the right data and a clear vision. When these align, they drive meaningful outputs and impactful business outcomes. You can have cutting-edge technology powering your GenAI, but without high-quality data as the raw material and a clear framework to measure results, you’re setting yourself up for challenges. If you don’t know how to validate your data, there will be gaps.”
Sustainability drive
Alongside digital transformation, a second key topic dominating boardrooms and conferences today is sustainability. The business world has shifted and both the expectations of the consumer and global legislation dictate that greener strategies are the way forward, especially with the United Nations’ 2030 Agenda for Sustainable Development in the background. But Ivanyi is optimistic that things are moving in the right direction for Bayer and the wider industry. “I believe we are on the right track,” he says. “We are making significant progress and putting in a great deal of effort to drive meaningful outcomes. Our first priority is establishing the right metrics to measure CO2 emissions globally. By implementing a standardised metric, we can define our baseline and track progress toward our 2030 sustainability goals.
“Secondly, we are embedding sustainability into every aspect of continuous improvement. As I mentioned before, we are exploring ways to align digital platforms with sustainability opportunities. It’s not just about cost efficiency—we also prioritise customer experience, which is a core obsession at Bayer, while ensuring sustainability is a fundamental part of our decision-making process.
“In fact, we already have use cases in the field where real-time decisions are being made based on CO2 emissions. For example, when planning transportation from point A to point B, our Transportation Management System (TMS) can calculate mileage and estimate the CO2 emissions for a given route, enabling us to make informed, eco-conscious decisions. Ultimately, it’s about integrating sustainability into our platforms and daily operations. Every use case we develop should not only drive operational improvements but also align with our broader sustainability goals.”
However, reaching sustainability targets isn’t easy and is impossible to achieve alone. Ivanyi believes that ensuring alignment and mutual understanding with partners is a key piece of the puzzle. “A crucial aspect of collaboration is working with our partners to develop the right solutions while fostering a strong sustainability mindset,” he explains. “The key is collaboration, step by step, with transparency at the core. We need to be open about our internal goals, the opportunities we see, and where we believe improvements can be made. Our partners should align with these sustainability objectives so that we’re all moving in the same direction. Ultimately, in the world of logistics, success comes down to how well you connect with your partners. At the end of the day, they are the ones putting the wheels on the road, so building a strong, clear collaboration with them is essential to driving progress.”
Brighter future
Looking ahead, the global investment in new technologies is not going to die down anytime soon. With the supply chain and logistics space set to be digital-focused for the foreseeable future, Ivanyi explains the biggest hurdle will be tailoring digitalisation to each individual organisation because all are built differently. “There’s no turning back—everyone is moving toward digital transformation,” he tells us. “Of course, this requires changes in processes and systems, but more importantly, it requires a shift in mindset. I always say it’s about moving ‘from data to behaviour.’ It’s not just about collecting information—it’s about using it to drive smart decision-making.
“Think of it like a pilot in a cockpit. The key is having the right metrics and insights at your fingertips, enabling you to make the best decisions—whether they’re focused on customer experience, operational performance, or strategic direction. More and more, companies are investing in digitalisation because it’s the only way forward. But success doesn’t just come from implementing new technology; it comes from training teams and fostering a mindset that embraces this transformation.
“Another critical element is differentiation. There’s no one-size-fits-all solution for companies operating on a global scale. You can’t apply the same tailored approach everywhere, but at the same time, there isn’t a single universal strategy that works for all. The key is striking the right balance—adapting to regional needs while maintaining a cohesive digital strategy.
“One thing is clear: digital transformation is inevitable. The real question is where each company focuses its efforts—whether in warehousing, transportation, inventory, or beyond. Everyone is on this journey; the difference will be in how mature and strategic their approach is.”
- Digital Supply Chain