Connect with us

Concrete

Cement Distribution: Objective functions and alignment

Published

on

Shares

Underscoring the vital role a robust distribution network plays in the cement sector, Indian Cement Review looks at the different parameters that affect the performance of a channel and it’s ultimate litmus test for efficiency and sustainability.

Conventional metrics in cement distribution would lead us from the factory gates to the final consumption point and to the role of efficiency in distribution with a range of intra-firm channel partners embedded in the chain from exclusivity to inclusivity, but that does not answer many questions that must be asked if a number of objective functions have to be met. The performance of a channel can be measured across multiple dimensions. The parameters that are measured usually are effectiveness, efficiency, productivity, equity and profitability of the channel. 

The indispensable element 

Distribution data among industry firms is not readily available as transparently nor are they used for benchmarking. But indirectly the data shows that in most firms as high as 25 per cent of the capital employed is in the working capital for servicing inventory and receivables alone. 

Capital and costs

The focus on logistics cost leads the industry to use inventory buffers that can effectively reduce this cost through shipment bundles, utilisation of logistics capacity and scale densities as well, with warehousing capacity as an important piece of the puzzle. The channel partners also play a role in ensuring that the logistics cost remains the primary focus at all times and thus demand aggregation must fulfill logistics cost minimisation. 

Cement supply chains starting from factory to the consumption point (almost a majority of the cases) work on the push-mode with the decoupling points as warehousing facilities or large exclusive dealerships who work as distributors to the final retail outlets in dealer shops. Vertical integration as attempted in Ready Mix Concrete supply chains (who also become decoupling points) work much better in smoothening the demand supply equation and thus closer to Just-in-Time methods as visible signs that take out a sizeable chunk of inventory holding waiting for demand aggregation. This is still a minuscule component of the overall pie, thus pull systems remain low in penetration. 

The end-to-end supply chain of cement must on the other hand streamline product concepts to market, rationalizing product portfolio and drive smart assortment plans and allocation strategies across the distribution chain. For this, a prediction of the market demand (almost on a daily basis) for each product in the portfolio while optimising inventory in a multi-echelon distribution channel comes as the most challenging task as cost effective throughput would mean logistics cost minimisation while that could raise the cost of working capital in the entire channel.

Click here to read more

Concrete

CCU testbeds in Tamil Nadu

Published

on

By

Shares



Tamil Nadu is set to host one of India’s five national carbon capture and utilisation (CCU) testbeds, aimed at reducing CO2 emissions in the cement industry as part of the country’s 2070 net-zero goal, as per a news report. The facility will be based at UltraTech Cement’s Reddipalayam plant in Ariyalur, supported by IIT Madras and BITS Pilani. Backed by the Department of Science and Technology (DST), the project will pilot an oxygen-enriched kiln capable of capturing up to two tonnes of CO2 per day for conversion into concrete products. Additional testbeds are planned in Rajasthan, Odisha, and Andhra Pradesh, involving companies like JK Cement and Dalmia Cement. Union Minister Jitendra Singh confirmed that funding approvals are underway, with full implementation expected in 2025.

Image source:https://www.heavyequipmentguide.ca/

Continue Reading

Concrete

JSW Cement gears up for IPO

Published

on

By

Shares



JSW Cement has set the price range for its upcoming initial public offering(IPO) at US$1.58 to US$1.67 per share, aiming to raise approximately US$409 million. As reported in the news, around US$91 million from the proceeds will be directed towards partially financing a new integrated cement plant in Nagaur, Rajasthan. Additionally, the company plans to utilise US$59.2 million to repay or prepay existing debts. The remaining capital will be allocated for general corporate purposes.

Continue Reading

Concrete

Cement industry to gain from new infrastructure spending

Published

on

By

Shares



As per a news report, Karan Adani, ACC Chair, has said that he expects the cement industry to benefit from the an anticipated US$2.2tn in new public infrastructure spending between 2025 and 2030. In a statement he said that ACC has crossed the 100Mt/yr cement capacity milestone in April 2025, propelling the company to get closer to its ambitious 140Mt/yr target by the 2028 financial year. The company’s capacity corresponds to 15 per cent of an all-India installed capacity of 686Mt/yr.

Image source:https://cementplantsupplier.com/cement-manufacturing/emerging-trends-in-cement-manufacturing-technology/

Continue Reading

Trending News

SUBSCRIBE TO THE NEWSLETTER

 

Don't miss out on valuable insights and opportunities to connect with like minded professionals.

 


    This will close in 0 seconds

    This will close in 0 seconds