{"id":62756,"date":"2019-05-28T15:46:07","date_gmt":"2019-05-28T19:46:07","guid":{"rendered":"https:\/\/www.agribusinessglobal.com\/?p=62756"},"modified":"2019-10-01T09:56:46","modified_gmt":"2019-10-01T13:56:46","slug":"corteva-agriscience-set-to-incorporate-dupont-dow-groups","status":"publish","type":"post","link":"https:\/\/www.agribusinessglobal.com\/pt\/agrochemicals\/corteva-agriscience-set-to-incorporate-dupont-dow-groups\/","title":{"rendered":"Corteva Agriscience pronta para incorporar DuPont, Dow Groups"},"content":{"rendered":"

Editor’s note:\u00a0This story first appeared in AgriBusiness Global’s May\/June print magazine. We now also distribute the magazine digitally for added circulation and convenience. Preview the digital edition here<\/a>.<\/em><\/p>\n

Bringing together three separate businesses to create one company can have its challenging moments. But those challenges are somewhat lessened if the separate businesses share common traits, such as a strong heritage and culture.<\/p>\n

\"Corteva<\/a>

Craig Reed<\/p><\/div>\n

As executives of Corteva Agriscience<\/a>, Agriculture Division of DowDuPont, begin the final stretch to unite DuPont Crop Protection, DuPont Pioneer, and Dow AgroSciences under one name<\/a> by June 1, a sense of similarity has helped move the process along.<\/p>\n

\u201cAlthough we\u2019re different companies, we weren\u2019t that different culturally and in the way we work with our supplier bases,\u201d Craig Reed, CPSM, Chief Procurement Officer of Corteva Agriscience, says. \u201cThis has allowed us to move faster to get things done in support of the new company.\u201d<\/p>\n

The merger will create a standalone agriculture company with leading positions in seed technologies, crop protection, and digital agriculture.<\/p>\n

For more than a year Reed and his team have worked to integrate two large legacy supply chains and network systems into one responsive and agile unit. The result, Reed says, is a company that will create more scale and more opportunities for its supplier base. \u201cTwo different companies meant two different strategies in terms of engaging and developing the supply base in support of [the separate] businesses,\u201d he says. \u201cWe now bring the collective of those organizations together to create new relationships. It will give us a broader base for growth.\u201d<\/p>\n

The agility that Reed and his team envision for Corteva Agriscience will allow it to get crop inputs through the supply chain more quickly. A part of the integration process has been to examine the operating models of the two legacy supply chains to find ways to become more efficient and effective. \u201cWe\u2019re designing our operations, networks, and strategy to enable Corteva Agriscience\u2019s vision and operating model as a pure-play ag company,\u201d Reed notes. \u201cAs a result of the merger, we can rethink what it means to operate in this space and how we serve our customers.\u201d<\/p>\n

The joining of two supply bases also means more R&D prospects for future crop input products. \u201cWe have a significant (R&D) pipeline within the companies today, and bringing together the supply bases will provide us with more opportunities,\u201d Reed says.<\/p>\n

As separate companies, there was competition to procure commodities and other goods and services. As one company, Corteva Agriscience will leverage its position to create economies of scale with its supplier network. \u201cSuppliers will have more opportunities to work with us,\u201d he says. \u201cWe\u2019re getting the best of both worlds (with the merged company), and there will be plenty of potential growth for our supplier base.\u201d<\/p>\n

Naturally, suppliers were apprehensive when the merger was first announced (in February 2018). Part of the apprehension stems from consolidation occurring in the industry, Reed says. \u201cThe biggest question we\u2019ve gotten from suppliers since the beginning is what the merger means for them,\u201d he stresses. \u201cThey need to have an understanding of how our business was changing.\u201d<\/p>\n

In Corteva Agriscience\u2019s discussions with suppliers, Reed says there was an emphasis on the new company looking at different, better, and novel ways to collaborate and drive value with the supplier base. Based on these discussions, Reed foresees a supplier base ready to work with Corteva Agriscience in areas that it did not do so previously with the legacy companies, or leverage business they did with one company but not the other.<\/p>\n

\u201cThat seems to be the focus we\u2019re seeing with suppliers,\u201d Reed says. \u201cThere is not so much concern about two large companies coming together. Suppliers are looking more in the area of what the new company will bring to them as they look to continue to grow with us.\u201d<\/p>\n

The legacy companies are located in more than 180 countries around the world. So, Reed says there isn\u2019t any particular region or country where there was challenge to integrate the supply chain.<\/p>\n

\u201cWe have a very global supply base, and we\u2019re buying from all over the world in support of our businesses,\u201d Reed says. \u201cWe\u2019ll have more scale with one company than we did as separate companies because we will have a bigger presence in areas where we did not in the past as individual companies.\u201d<\/p>\n

He points to the regions of Latin America, North America, and Asia-Pacific where Corteva could expand its presence. \u201cEach (region) has different characteristics from a supplier perspective,\u201d Reed says. \u201cWe will leverage each region in different ways.\u201d<\/p>\n

From a supply chain perspective, there will be a continued push for greater speed and more transparency, Reed says. \u201cI think there is a need and desire to be more transparent in all aspects of the supply chain from the perspectives of cost, flow \u2014 where goods sit \u2014 and service,\u201d he says. \u2018We\u2019re starting to see how we can better leverage the skill sets, technology, and expertise of our supply partners to support our overall business goals. This will translate itself into the way we work going forward.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

Nota do editor: Esta hist\u00f3ria apareceu pela primeira vez na revista impressa de maio\/junho da AgriBusiness Global. Agora tamb\u00e9m distribu\u00edmos a revista digitalmente para\u2026<\/p>","protected":false},"author":377,"featured_media":60885,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4],"tags":[54],"class_list":["post-62756","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-agrochemicals","tag-featured-home"],"yoast_head":"\nCorteva Agriscience Set to Incorporate DuPont, Dow Groups - AgriBusiness Global<\/title>\n<meta name=\"description\" content=\"Editor's note:\u00a0This story first appeared in AgriBusiness Global's May\/June print magazine. 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