Supply chain in cement industry

Thursday, 09 August Introduction The purpose of this article is to make the reader aware of the complexity of the process and the importance of a well-structured logistics system in order to ensure safety.

Supply chain in cement industry

Get started absolutely FREE in 2 minutes, plus receive a free printed magazine. Introduction For an industry segment like cement, where high product volume is intrinsic to the business, logistics and supply chain play a critical role in ensuring service differentiation in the face of increasing competition.

Transporting material is an essential requirement for industrialisation and urbanisation alike. Further, with Supply chain in cement industry consumption being one of the main drivers for growth in India, it is important to build an effective and scalable supply chain network to reach the last mile.

Supply chain in India faces a number of challenges, including the lack of well-developed logistics infrastructure, the unavailability of skilled manpower, the inability to cater to increasing rural consumption, stringent statutory regulations, policies, and low level of maturity in industry as compared to other developed countries.

Cement demand is projected to grow to 2. Meeting the growing demand in the future will require considerable capacity addition, which in turn will create pressure on existing resources.

Optimising logistics and distribution costs, while ensuring consistent availability and service to markets from manufacturing units, is a major challenge for the industry going forward. The business imperatives in this context include the following: A key differentiator Most cement plants are located in remote clusters depending on the availability of limestone, which is the raw material for manufacturing cement.

Supply chain in cement industry is critical to ensure the delivery of cement from these manufacturing locations to the markets. Further, cement is a distribution-intensive product with the focus in cement transportation being on high volumes and low distribution costs.

Hence, optimising logistics costs has an immediate and visible business impact for cement companies. Finally, the nature of cement consumption in urban locations is quite different from the nature of cement consumption in rural locations.

This implies differentiated supply chain strategies to serve urban and rural customers. An agile and responsive supply chain is critical to sustaining industry leadership. This has been the driving factor for supply chain excellence at UltraTech and the focus has been on creating continuous value and service differentiation at each stage, from planning to delivery.

Rethinking the cement industry supply chain | SAP Blogs

Customer centricity is at the core Over the years, UltraTech has achieved market leadership by providing benchmark services to customers by adopting a customer-oriented process at every stage from planning to delivery.

UltraTech has adopted a robust planning process that starts with forecasting the cement demand based on an assessment of customer requirements. This helps understand at what time during the day the customer requires the delivery of the cement.

Supply chain in cement industry

To improve on-time deliveries, UltraTech uses GPS technology to track more than trucks across the country, which are carrying loads for customer deliveries. Each order execution is intimated through SMS to help customers plan for onward sales.

More than customers are using either online or mobile technology for order booking and execution status monitoring. UltraTech is the largest producer of cement in India, with 19 integrated plants, 21 grinding plants, and seven bulk terminals across the country.

Through a robust logistics network of more than warehouses and railheads, UltraTech serves more than 16 orders per day, using a mix of various logistics modes, including rail, road, and sea. These orders originate from over 50 dealers, retailers, and institutional customers with lot sizes varying from of 2 t — 40 t.

Through bulk terminals located at Mumbai, Bengaluru, Hyderabad, Pune, Mangalore, and Cochin, and with grinding units located near major urban consumption centres, UltraTech is able to provide the desired services at optimal cost. For primary movement on road from factory to warehouses or nearby customer locations, the fleet size is of medium-capacity and high-capacity vehicles, whereas from the secondary locations, UltraTech use tractors, and low-capacity and medium-capacity vehicles on road to serve customer orders.


Technology as an enabler for logistics UltraTech has adopted technology as the key enabler for supply chain excellence from planning to execution.

It has implemented technology initiatives to benefit all stakeholders including channel partners dealers and institutional customersservice partners handling and transporting agents, railwaysand all internal functional chain relationships, to achieve a competitive advantage.

The cement industries are playing vital role in the economic and social development of the countries. The Indian cement industry chosen for this study is the biggest cement industries in the country.

It is . Supply Chain Management Logis8cs within the bulk cement industry Markus Lanz. To analyze the cement supply chain we need to understanding well the nature of cement industry, identifying the most important Inputs and Outputs (starting from Quarry until the End-customer) and utilizing Nowadays-Benchmark tools such as Supply Chain Council's SCOR model processes, Absolute triangle, ABC analysis and Model simulation.

Supply chain management in the cement industry Author: Other Contributors: Advisor: Department: Publisher: Issue Date: Agudelo, Isabel Massachusetts Institute of Technology.

Engineering Systems Division. Edgar Blanco. Massachusetts Institute of Technology.

Rethinking the cement industry supply chain | SAP Blogs

Engineering Systems Division. Fall 11 The Food Industry MGT Research paper about the supply chain management in the food industry Alexane COLOMBET 08 Automne Sources 1 – “The cold chain and its logistics” DR. supply chain timberdesignmag.comsion SCOR-Model Supply-Chain Operations Reference (SCOR) Model is another tool.

It is used as benchmark tool to analyse the cement supply chain processes. In general, SCOR Model is a cross-functional framework for evaluating and comparing supply chain activities.

Strengthening Your Supply Chain | World Cement