How ThroughPut Accelerates the Bottom-line Despite Logistics Challenges in the Cement Industry

May 31, 2023 · 5 minutes
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It is no exaggeration that cement production drives the economy. From roads to buildings and manufacturing, the entire economy can come to a standstill if cement is not available at the right time, in the right quantity and at the right place.

Yet, despite this huge opportunity, a lot of cement manufacturers are struggling with inventory and logistical challenges failing to make the best of this golden opportunity at hand. Without a stable, responsive and scalable supply chain, catering to the growing demands of customers is nearly impossible.

And one of the greatest barriers in the supply chain for cement manufacturers is logistics. A cost center that is holding back the efficiency, performance and growth of this industry, it makes sense to start your supply chain optimization efforts here.

But before that, let’s delve a little deeper into the challenges faced in cement logistics and how it is impacting your entire supply chain and the business.

“Logistics” Challenges in the Cement Industry

As a cement manufacturer, you know how challenges in this space have been both, intense and longstanding. Firstly, and rather unfortunately, the demand for cement often surpasses the production and delivery capacity.

With construction projects booming and demand fluctuating, it has become difficult for cement producers to keep up with the demand.

This demand-supply imbalance has not only strained the supply chain but has also led to potential delays in fulfilling orders, resulting in dissatisfied customers and missed business opportunities – but also, expedited and unplanned logistics that bear heavy on your supply chain costs.

Add to it the fact that cement is perishable. It requires time-sensitive delivery to ensure its freshness and usability, making  logistics management in the cement industry even more complex and rather cost-sensitive.

Scheduling inefficiencies too plague the cement logistics industry. Inaccurate scheduling leads to wasted yards per hour during production, causing productivity losses and increased emissions.

Plus, inefficient scheduling not only affects the utilization of resources but also adds unnecessary costs to the entire supply chain.  Inevitably, these scheduling inefficiencies trickle down to missed deliveries. And these missed deliveries not only lead to unrealized sales but also further contribute to increased emissions due to additional transportation efforts. 

All these challenges together contribute to rapidly eroding margins for cement producers, putting further pressure on their profitability and sustainability, and also crippling their ability to grow and capture more market share!

Of course, addressing these persistent challenges can significantly impact the bottom line of your business. But to do so, you also need to approach the logistics problem in a more holistic way.

Aiming to solve the challenges in cement logistics without considering its interdependence with other functions in the supply chain may only escalate the problem than resolve it.

Let’s understand this in detail.

Solving Cement Logistics Problems With ThroughPut’s 360° Cement Logistics Intelligence

Logistics problem in the cement industry is not an isolated problem. That’s why a mere track and trace point solution may resolve your logistics problems, sure, but without a view of how your entire cement supply chain functions interdependently, this effort may not result in significant bottom line impact. In fact, it may even be counterproductive.

For instance, and to give the easiest example, cutting costs by reducing the number of trucks without considering its impact on other functions will lead to delays in delivery and upset customers!

A more ideal way to solve the logistics issue would be to take a holistic approach to logistics optimization. Prioritize gaining end-to-end visibility of your supply chain and then identify areas of improvement within and outside logistics function that can have a direct and immediate impact on your logistics operational efficiency and also your bottom line. 

Let us understand it better.

ThroughPut’s 360° Cement Logistics Intelligence leverages real-time data to enable you to benefit from: 

  • Accelerated material and cash flow
  • Rapid, real-time understanding of complex logistics operations
  • Agile, efficient logistics networks that adapt to volatile demand on the fly
  • Prioritization of deliveries based on sales value as well as time sensitivity

In short, you’ll be able to gain control over your cement logistics operations with a strategic and holistic view of your end-to-end supply chain, while gaining access to recommendations that will help you drive intelligent, data-informed decisions that can guarantee positive business outcomes – and value.

At a granular level, you will be able to: 

  • Access actionable insights into where operations are lagging, along with recommendations to achieve a smooth, seamless movement of material
  • Achieve real-time responsiveness to demand for faster delivery, while at the same time adapting to shifting customer, capacity constraints, and inflation 
  • Improve order prioritization based on spend and underlying sales improvement potential
  • Affect a high rate of OTIFs (based on real-time data on carrier routes, port congestions, and runtime incidents layered over historical and planned delivery schedules and trends)
  • Automatically reroute materials and associated purchase orders to optimize resources and market conditions at any point of time
  • Eliminate supply chain bottlenecks through proactive management of critical issues across the cement value stream

Of course, as a result, you also eliminate the chances of producing too much or too little and  know how much more capacity you have to take on new orders and customers.

With ThroughPut, you can also predict demand variance, thus gaining the ability to proactively prepare for it by quickly optimizing your product offerings and reassigning material flow in real time.

The result? The right output at the right place and the right time, and maximized profit margins – which can in turn be re-invested to grow manufacturing capacity.

Logistics Performance Optimization with AI – End-to-End Value Guaranteed

There’s really no two ways about it. A responsive, well-coordinated supply chain stands the best chance of fulfilling orders on time and in full – every time, and at the least possible cost. That’s undoubtedly any cement manufacturer’s ultimate goal.

But to be able to get there, you need the best technologies at your disposal to automate and optimize your supply chain operations.

A comprehensive AI solution like ThroughPut can help you realize all your goals without necessitating investment in several point technologies and solutions – enabling you to thoroughly and effectively achieve savings, all while driving profits and fantastic customer experiences.

For a better understanding of how AI-driven cement logistics with ThroughPut works, explore these case studies – after all, as Jerry McGuire famously said, “Show me the numbers!”

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Anita Raj
Vice President of Product Marketing