Economy & Market
Demand uptrend persists, amid price pressures
Published
8 years agoon
By
admin
Cement demand that has started picking up in the third quarter (October-December 2017) of fiscal 2018 (FY18) continued its growth streak in the fourth quarter of the fiscal, according to analysts. However, cement realisations failed to post commensurate rise, and prices, which should have seen an uptrend in the last quarter of the year, have remained subdued.Sabyasachi Majumdar, Senior Vice President & Group Head, ICRA Ratings, says, "A demand pick-up in the recent months, October 2017 to January 2018 by 13.4 per cent, is backed by low cost housing in the eastern markets, Andhra Pradesh and Telangana along with the infrastructure demand from the eastern, southern and western markets."
Discussing the latest demand trends, CLSA’s Vivek Maheshwari and his team says, "The industry has seen a pick-up in volume growth, also reflected in 11 per cent volume growth expected for our coverage in 4QFY18 (January-March 2018 quarter). While a low base helped (these volumes), the two-year Compounded Annual Growth Rate (CAGR) should still be at a respectable ~8%." Besides, cement realisations have not seen any quarter-on-quarter (QoQ) uptick despite favourable seasonality.
The demand environment continued to remain favourable in March 2018, said Binod Modi – Senior Research Analyst, Reliance Securities, in a recent report, adding, however, the pricing trend remained subdued marked by sharp month-on-month (MoM) contraction during the month. Volume push owing to year-end month, and fair chances of price hike from April 2018 also aided volume growth.
"Demand growth was aided by both trade and non-trade segments and most dealers expect the demand momentum to remain benign till the onset of monsoon, while the prices are expected to bounce back from first or second week of April across the regions barring Central," said Modi.
"A pick-up in the affordable and rural housing segments and infrastructure – primarily road and irrigation projects – is likely to continue the demand growth momentum of around 5 per cent in FY2019," says Majumdar.
Budget FY2019 has provided higher rural credit target, increased MSP, and allocation for rural, agricultural and allied sectors, and stressed on continued focus on the PMAY and infrastructure investments, all positive for cement demand growth. Price falls
There was a disappointment on the price front for the cement companies in the Q4FY18. March quarter is traditionally the busiest quarter for construction, and hence cement prices usually firm up sequentially, but not this time.
All-India average cement price corrected by about 3 per cent MoM to ~Rs 286-291/bag mainly due to sharp correction in Western and Southern realisation, which corrected by ~6 per cent and 5 per cent MoM, respectively in March, while average prices in Northern, Central and Eastern regions corrected by ~1 per cent MoM each, according to Reliance Securities. Besides, all-India average price declined by 1 per cent YoY (Rs 3-5/bag) and 0.3 per cent QoQ in 4QFY18.
Average price in Southern region corrected sharply by 5 per cent QoQ, while it corrected by 1-1.5 per cent QoQ in Western and Northern region during 4QFY18. However, Eastern and Central regions witnessed average price improvement of ~3 per cent and ~4 per cent QoQ, respectively during 4QFY18.
CLSA said that their channel checks had indicated that "efforts are underway to raise prices by 5-20 per cent in South India and Maharashtra," the regions which saw the highest pressures on EBITDA, follow the sharp cuts in March. However, the channel is still apprehensive on sustainability of such hikes.
"Overall, while cost inflation remains a concern, we believe that price hikes are imminent across regions and unit margins should expand in FY19," says Maheshwari.
Though government seems to be vigilant about any price hike by the cement companies for last couple of months, Modi of Reliance Securities expects "prices to witness an upward movement in coming months due to rising cost pressures
and sustained demand growth leading to higher utilisation."Cost pressures
"Overall earnings before interest, tax, depreciation and amortisation (EBITDA or operating profit) for our coverage should rise by a modest 7 per cent year-on-year (YoY) although net earnings will likely decline," Maheshwari says in the report. This is mainly due to high costs particularly those of pet coke, imported coal and diesel, however, rising volumes are expected to come to manufacturers’ rescue during the quarter to an extent. Due to lack of price hikes during the quarter EBITDA margins are expected to decline by 7-8 per cent YoY and QoQ to a 13-quarter low, for CLSA’s universe of cement stocks, Maheshwari said in the report.
Majumdar also predicts that expectation of higher pet coke, coal and diesel prices are likely to put pressure on the profitability margins and debt metrics of the cement companies in the coming quarters.
"Lumpy capacity additions in the recent past have led to an increase in debt levels and some deterioration in credit metrics, although they still remain at comfortable levels for most of the larger players. Further, higher power and fuel (increase in coal and pet coke prices) and freight costs (increase in diesel prices) in FY2018 and in the coming quarters of FY2019 is likely to continue to put pressure on the profitability margins and debt metrics of the cement companies. Hence, the ability of the industry players to secure increases in cement prices remains critical from the profitability perspective," Majumdar reiterated.
Given all these scenarios, ICRA expects that the capacity overhang and the moderate demand growth to continue to keep the industry’s capacity utilisation level close to 65 per cent over the medium-term (3-5 years).
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Sanjeev Arora, President – Motion Business & IEC LV Motors Division, ABB India, discusses efficient drive powertrain technology for cement manufacturing, which is powering India’s next phase of sustainable growth.
India’s growth story is being written at an unprecedented scale. From highways and airports to smart cities, metros, renewable energy parks and industrial corridors, infrastructure development is accelerating rapidly. At the heart of this transformation lies one of the country’s most foundational industries – cement. India is already the world’s second largest cement producer, and demand is expected to rise significantly over the next decade as investments in urbanisation, housing, manufacturing and public infrastructure continue to expand. However, the cement industry also finds itself at a defining crossroads. It must scale production while simultaneously reducing emissions, improving efficiency, strengthening reliability and ensuring operational excellence.
This is where technology will play a decisive role. For decades, motors and drives have quietly powered every stage of cement manufacturing, from crushers, kilns and conveyors to mills, fans and packing units. They have become strategic enablers of sustainability, digitalisation, safety and profitability. The future of cement manufacturing will be defined by plants that are not only more productive, but also more intelligent, energy efficient and resilient.
In many ways, the journey toward a leaner and cleaner cement industry begins with how motion systems are designed, monitored and optimised.
Decarbonising cement
A substantial share of electricity consumption within a cement plant comes from motor driven systems such as fans, pumps, compressors, conveyors and grinding mills. Globally, electric motors account for nearly 45 per cent of the world’s electricity consumption in industrial applications. This makes energy efficient motor systems one of the fastest and most impactful levers available for decarbonisation.
In India, where industrial energy demand continues to grow alongside economic expansion, improving motor efficiency can create meaningful environmental and business outcomes. Replacing IE2 motors with high efficiency IE4 and IE5 motors, combined with variable speed drives (VSDs), can significantly reduce energy consumption while improving process control. ABB’s latest generation of IE5 ultra-premium efficiency motors and synchronous reluctance motor technologies are helping industries achieve substantially lower energy losses compared to conventional systems.
Compared to the commonly deployed IE2 motors, IE5 motors can achieve nearly 50 per cent lower energy losses across several operating ranges, making them particularly relevant for energy intensive sectors such as cement where motors operate continuously at scale. In large scale industrial applications, it is estimated that upgrading to IE5 motor systems can deliver energy savings significant enough to enable payback periods of nearly one to two years, depending on operating hours and load conditions.
The impact goes beyond energy bills. Lower energy consumption directly contributes to reduced carbon emissions and supports India’s broader sustainability ambitions, including the country’s commitment toward net zero pathways and industrial decarbonisation. At ABB in India, our installed base of motors and drives has already contributed to significant annual energy savings across industries. According to our estimates, ABB motors and drives installed over last 12 years, save nearly 20 TWh of electricity annually in India, equivalent to roughly half of Delhi’s annual electricity consumption.
Rise of the digital plant
As cement plants become larger and more automated, operational continuity has become critical. Unplanned downtime in a cement facility can lead to significant production losses, supply chain disruptions and maintenance costs. This is driving a major shift toward digitally connected operations.
The next generation of motors and drives is embedded with intelligent monitoring capabilities that enable real time visibility into equipment performance, energy consumption and operating conditions. Combined with Industrial IoT, advanced analytics and predictive maintenance solutions, plant operators can now move from reactive maintenance to proactive asset management. In practical terms, this means maintenance teams can detect anomalies such as overheating, vibration imbalances or bearing degradation long before equipment failure occurs.
Predictive maintenance technologies are especially important in cement manufacturing because of the extreme conditions in which equipment operates. Dust, vibration, fluctuating loads and high ambient temperatures place enormous stress on rotating equipment. Digital condition monitoring systems can continuously assess equipment health, identify performance deviations and help optimise maintenance schedules, reducing downtime, extending equipment life and improving operational reliability.
As cement manufacturers navigate fluctuating energy prices, changing market demand and sustainability targets, intelligent motor systems provide the flexibility needed to optimise production dynamically.
Toward total cost of ownership
One of the most significant shifts taking place in industrial decision-making today is moving away from evaluating equipment based solely on upfront capital cost toward understanding total cost of ownership (TCO). In a typical motor system, the purchase price often represents only a small fraction of the total lifecycle cost however energy consumption, maintenance requirements, downtime and operating efficiency account for the vast majority of long-term operational expenses. For cement manufacturers operating in highly competitive markets, this distinction is critical.
A high efficiency motor paired with an appropriately configured variable speed drive may require a higher initial investment, but the long-term benefits are substantial. Reduced electricity consumption, lower maintenance needs, longer service intervals and improved process stability can deliver faster payback and stronger profitability over time.
In addition to reducing energy use, optimised drive powertrain also minimises mechanical stress on equipment. This improves reliability and reduces wear on bearings, couplings and connected systems.
As sustainability reporting and energy benchmarking become increasingly important
across industries, forward looking cement manufacturers are recognising that investments in efficient drive powertrain create both operational and environmental value.
Engineering reliability
Cement applications demand robust insulation systems, superior thermal management, advanced sealing technologies and durable mechanical construction. ABB’s heavy-duty motors and drives are engineered specifically to withstand these extreme operating environments while maintaining efficiency and performance.
Equally important is the ability to maintain serviceability over long operating lifecycles.
In sectors such as cement, where plants are expected to operate continuously for decades, lifecycle support becomes a strategic consideration. Modernisation, retrofitting and service solutions are therefore playing an increasingly important role in helping operators improve efficiency with minimal upgradation and without requiring complete infrastructure replacement.
ABB’s Motion Services portfolio supports customers through predictive maintenance,
performance optimisation, digital diagnostics
and lifecycle management solutions designed to maximise uptime and equipment longevity. Reliability in cement manufacturing is no longer simply about avoiding breakdowns. It is about ensuring continuity, protecting productivity, enabling operational confidence and excellence.
Safety-productivity connection
Industrial safety and operational productivity are deeply interconnected. As cement plants become more automated and digitally integrated, modern motor and drive technologies are also contributing to safer work environments. Remote monitoring capabilities reduce the need for personnel to physically inspect equipment in hazardous or hard to access areas. Intelligent systems can provide alerts, diagnostics and performance insights remotely, improving both safety and maintenance response times.
Advanced drive technologies also support safer operations through smoother start-and-stop, controlled acceleration and reduced mechanical shocks. These capabilities not only protect equipment but also reduce operational risks for plant personnel. Additionally, digitally enabled systems improve visibility into operational conditions, helping teams respond more effectively to potential safety issues before they escalate. In many ways, the modern cement plant is evolving into a more connected and collaborative ecosystem where automation, digital intelligence and motion technologies work together to improve both human safety and operational excellence.
India’s infrastructure ambitions
The cement industry is entering a transformative phase. As India advances toward becoming a global manufacturing and infrastructure powerhouse, the sector will need to balance growth, competitiveness and sustainability simultaneously. It is an opportunity for us to help industries outrun leaner and cleaner. By combining energy efficiency, digital intelligence and engineering innovation, the cement sector can accelerate its transition toward a more sustainable and resilient future while continuing to power India’s growth ambitions. And that journey has already begun.
About the author
Sanjeev Arora, President – Motion Business & IEC LV Motors Division, ABB India comes with nearly three decades of experience in industrial motion technologies, energy-efficient motor systems, and driving sustainable industrial transformation across India and the Middle East & Africa.
Concrete
Synthetic lubricants have become a strategic choice
Published
4 days agoon
June 17, 2026By
admin
Dr SB Hegde, Professor, Jain College of Engineering, India, and Visiting Professor, Pennsylvania State University, USA, makes a compelling case that lubrication is the most undervalued lever for energy efficiency and profitability.
In a sector where one hour of unplanned kiln stoppage can cost up to `22 lakhs and bearing failures in vertical roller mills run into crores, the conversation around plant performance rarely begins with lubrication. Industry expert Dr SB Hegde brings an academic rigour to a subject that most plant managers treat as routine maintenance and not as a strategic investment. He outlines how synthetic lubricants, predictive maintenance and OEM collaboration can together deliver returns.
How critical is lubrication strategy in ensuring reliability and productivity in modern cement plants?
Lubrication strategy is the backbone of reliability and productivity in modern cement plants. While lubricants account for only two to three per cent of total operating costs, poor lubrication is responsible for up to 70 per cent of maintenance problems, equipment failures and unplanned downtime.
Leading global cement plants achieve 85 per cent + Overall Equipment Effectiveness (OEE) largely due to disciplined lubrication management. High performance synthetic lubricants deliver proven 2 to 6.5 per cent energy savings (typically three to four per cent) in critical equipment such as kiln rollers, vertical roller mills (VRM), ball mill gearboxes and crushers. In India, this translates to 8-15 crore annual savings per 1 MTPA plant, or80-150 per tonnes of cement, with payback in 6-12 months.
With 160-170 million tonnes of new capacity expected by FY28 and many plants still operating at 65 per cent to 68 per cent OEE, a strong lubrication strategy has become a strategic necessity. It is not a routine maintenance activity, it is a high return investment that directly improves reliability, productivity
and sustainability.
What is the biggest lubrication related challenges faced by the Indian cement industry today?
The Indian cement industry operates under some of the harshest lubrication conditions in the
world, extreme dust, high temperatures (100-140°C), heavy shock loads, and continuous 24/7 operation. The most serious challenge is severe dust contamination, responsible for nearly 36 per cent of bearing failures. A major bearing failure in a VRM or kiln can cost 2-3.5 crore. Other key issues include incorrect lubricant selection, inconsistent greasing practices and cost perception of specialty lubricants. One hour of unplanned kiln stoppage due to lubrication failure can cost8-22 lakhs.
These challenges push maintenance costs to 15 to 25 per cent of total production cost and can cause annual losses of `8-15 crore or more for a one MTPA plant. Addressing them through proper lubricant selection, contamination control and condition monitoring is now critical.
How can advanced lubricants contribute to energy efficiency and sustainability in cement manufacturing?
Advanced synthetic and high-performance lubricants are among the most practical and effective tools for improving energy efficiency and sustainability in cement manufacturing. They reduce friction and operating temperatures, delivering 2-6.5 per cent energy savings (typically three to four per cent).
In India, this results in 8-15 crore annual savings per 1 MTPA plant (80-150 per ton), with payback in 6-12 months. A three to four per cent energy reduction also lowers CO2 emissions by 2-4 kg per tonne of cement. For a one MTPA plant, this equals
2,000-4,000 tonnes of CO2 reduction annually,
generating carbon credit revenue of `0.16-1 crore under India’s CCTS.
Additionally, they extend drain intervals 3-5 times and reduce lubricant consumption by 15 per cent to 30 per cent. With new capacity additions and stricter emission norms, advanced lubricants offer an excellent combination of profitability and environmental performance.
What role does predictive maintenance and oil condition monitoring play in reducing plant downtime?
Predictive maintenance (PdM) and oil condition monitoring are game changers for reducing unplanned downtime. They shift maintenance from reactive to proactive by detecting issues early through oil analysis, vibration and temperature data.
These technologies can reduce unplanned downtime by up to 50 per cent and improve uptime by 10 to 20 per cent. In one documented case, a cement plant achieved 57× ROI within six months, generating savings of over 8.4 crore and preventing a major failure that would have caused more than 160 hours of downtime. For Indian plants, where one hour of kiln stoppage costs8-22 lakhs, PdM typically delivers 25 per cent lower maintenance costs, 20 to 40 per cent longer equipment life, and payback in three-six months. It has become essential for achieving high reliability in the rapidly expanding cement industry.
How are synthetic and specialty lubricants transforming the performance of heavy cement equipment?
Synthetic and specialty lubricants are significantly transforming the performance of heavy cement
equipment by providing superior protection under extreme conditions of high temperature, shock loads, dust and continuous operation.
They deliver three-seven times longer component life, 2 to 6.5 per cent energy savings, and 15-25°C lower operating temperatures. Modern solutions such as PAO based synthetic gear oils (ISO VG 320-460), high-temperature synthetic greases, and advanced open gear compounds also provide three-five times longer drain intervals and 15 to 30 per cent lower lubricant consumption. In the Indian context, these improvements translate into `8-15 crore annual savings per one MTPA plant. As the industry adds large new capacity, synthetic and specialty lubricants have become a strategic choice for higher reliability and lower total cost of ownership.
How important is lubrication management in extending the lifecycle of critical plant machinery?
Lubrication management is extremely important and one of the most effective ways to extend the lifecycle of critical cement plant machinery. Properly implemented, it can increase equipment life by 20 to 50 per cent or more.
Since nearly 70 per cent of failures in bearings, gearboxes and rollers are lubrication related, disciplined practices such as right lubricant, correct quantity, contamination control and monitoring, can help deliver substantial benefits. For a typical one
MTPA plant, good lubrication management can save 6-12 crore annually through reduced replacements and downtime. In my view, lubrication management is not a routine maintenance task but a strategic practice that directly determines long term asset performance, reliability and profitability. How can collaboration between lubricant companies, OEMs and cement manufacturers drive operational excellence? Collaboration between lubricant companies, OEMs and cement manufacturers is a powerful driver of operational excellence. It combines equipment design knowledge, lubricant technology and practical plant experience to deliver superior results. Such partnerships help develop tailor-made solutions, integrate automatic lubrication systems with predictive monitoring, and accelerate innovation in energy efficient products. One such collaboration delivered 57x ROI in six months with savings exceeding8.4 crore.
With 160-170 million tonnes of new capacity expected by FY28, these collaborations are essential for achieving world class reliability, lower operating costs, and stronger sustainability performance. Cement manufacturers who actively engage in such partnerships will gain a clear competitive advantage.
- Kanika Mathur
Veerendra Jamdade discusses why traditional ERP systems are failing to meet the demands of modern cement manufacturing and how intelligent, cloud-based, and industry-specific ERP solutions can drive operational efficiency, supply chain visibility and data-driven decision-making.
The slow-paced manufacturing realm has ceased to be a part of India’s cement sector. Due to new, large-scale infrastructure developments currently being realised, massive urban growth, increasing housing demand and increasingly strict delivery timeframes; India’s cement industry is now undergoing rapid change and has developed into a very dynamic ecosystem characterised by a need for speed, coordination and operational visibility. Widening chasm between current operational requirements and outdated enterprise resource planning (ERP) craftsmanship is rapidly becoming evident across the entire industry. In today’s cement industry, where organisations operate complex networks of plants, depots, logistics partners, distributors and field teams, it is also observed that traditional legacy-based enterprise systems are increasingly struggling to support the size, agility and timeliness of decision-making necessary to manage these operations efficiently. Given that even a small bottleneck in process can have numerous implications on profit margins for a variety of companies in the cement industry.
Lack of real-time visibility across plants and depots
To maintain a successful cement business, it is necessary to coordinate the efforts of all the different parties involved in the business. Coordination is essential for production units, grinding units (or plants), warehouses, depots, dealers and transport teams; they all must work together effectively to keep operations flowing smoothly. A major issue facing the cement sector is that, because traditional ERP systems were not designed to provide real-time visibility through the supply chain (a very large network), they cannot adequately meet this need.
Most legacy ERP systems still operate on delayed reporting cycles, where operational data is updated several hours after they occur, instead of being reported in real-time, making it impossible for decision-makers to receive the live information they need to manage inventory levels; dispatching, scheduling, and fluctuations in the areas they service. With transportation making up a significant portion of the cost of doing business in cement, delayed visibility directly affects profitability. Therefore, a modern cement company needs immediate access to the operational data they require to support their business, rather than reports that provide that information after having made the necessary decision.
Poor integration with supply chain and logistics
Logistics play a crucial role in the success of many organisations; the cement industry is one of those industries that relies much on logistics. From the movement of raw materials to the delivery of finished products, the efficiency with which transportation is utilised is critical to the company’s profitability. Unfortunately, most traditional enterprise resource planning systems are still designed and used as stand-alone systems and don’t connect properly with the logistics networks and processes of a company. This means companies rely on phone calls, spreadsheets, and manual coordination to manage deliveries and vehicles during their transit.
As a result of this condition, tracking delays is much more difficult, route optimisation is less effective and vehicle turnaround time increases. In short, the modern cement supply chain needs seamless digital connections between manufacturing, warehousing, transportation, and dealer networks in order to be efficient, transparent, and respond faster to customer demands than those companies that do not have an integrated supply chain.
Continued dependency on manual processes
One of the most significant ironies within numerous cement companies is that, although the companies have invested in ERP systems, they still require several manual operations to support their daily operations. Workers still rely on spreadsheets, hard copy documents, emails, and non-electronic approvals, all of which are time-consuming and increase the likelihood of errors. Failure to properly enter dispatch records may result in incorrect inventory information, which may lead to billing errors that create operational confusion at the company’s scale of operations.
Manual processes also reduce productivity because employees must spend an inordinate amount of time keeping the various systems updated and very little time involved in analysing the data or improving the execution of their work. A further complication related to using technology is the diminishing ease of use. Technology was designed to improve the efficiency of operations and have a net result of reducing complexity. If workers require multiple manual operations to perform basic operational activities, the ERP system has not met its intended objective.
Weak analytics and forecasting capabilities
The cement industry has a market that is constantly in flux, due to factors such as infrastructure investment, seasonality of demand, fuel costs, building activity by region and general economic cycles; therefore, having accurate forecasts is very important in this type of market. Traditional ERP systems are primarily data repositories with limited analytic functionality; thus, they capture transactional and operational information but generally lack advanced analytical capabilities for converting captured data into actionable information. This affects everything from demand forecasting and inventory planning through procurement and production scheduling.
Companies frequently struggle to predict when regional demand will surge, identify slow-moving inventory items, or optimise their production capacity in a manner that is effective. Without the benefit of predictive intelligence, companies find themselves having to react to issues rather than preparing to address them. With today’s increased competition in the marketplace, relying on reactive decision-making is no longer a viable option.
The future of ERP in the cement industry
In the world of enterprise resource planning (ERP), intelligence, automation, and predictive decision-making are the future. The use of artificial intelligence and machine learning in today’s ERP systems allows them to provide far more than simply documenting operational data. These intelligent systems can model demand patterns, predicting maintenance needs, managing purchasing and inventory levels, assisting with dispatching and scheduling, and identifying inefficiencies prior to becoming a significant issue.
Cement manufacturers will see reductions in downtime, improved cost control, increased inventory productivity, and quicker decision-making through all areas of their operation due to the use of an intelligent ERP system. An intelligent ERP system enables you to turn data into a source of competitive advantage vs. simply providing you with a report.
Greater adoption of cloud-based ERP
Cloud ERP systems are increasingly becoming a necessity for businesses operating across multiple locations. Cloud ERP is far more flexible and scalable than the flagships on-premise systems. For cement companies operating under remotely distributed conditions, cloud technology allows the teams to access real-time information from anywhere. Management teams can monitor plant performance via remote access, while field teams and depot managers can coordinate more effectively. Additionally, cloud-based systems facilitate upgrades, lessening the reliance on IT organisations, while allowing for operational scaling with no major infrastructure investment. In a fast-moving industry, agility matters and cloud ERP delivers just that.
Industry-specific ERP solutions
Generic enterprise solutions form the basis for many traditional ERP platforms. However, numerous sectors today require detailed and very specialised operating requirements. For example, in the cement sector, there are areas of importance such as freight optimisation, clinker tracking and bulk dispatch management, along with dealer incentive structures, and multi-location production planning that can require sector-specific workflows and functionality.
Consequently, sector-specific ERP models are rapidly gaining favour. Because quasi-customised approaches can be costly, difficult to maintain, and may not provide a suitable product for the user’s needs, more companies are choosing an ERP that comprises industry-specific functionality and is designed specifically for their operation; reducing the need for tremendous amounts of customisation while providing an enhanced level of usability and a better fit to what the way their business operates versus a generic enterprise process. When users find an ERP model that provides them with functionality that can be built into their workflow, they are much more likely to accept the use of the system than if the ERP model were generic in nature.
Integrated logistics and supply chain ecosystems
For the ERP systems of the future to be truly effective as a fully integrated operational ecosystem, there must be a common digital backbone connecting all participants in the supply chain manufacturers, distribution centres, carriers, retailers, purchasing departments and consumers. In doing so, businesses will achieve much greater operational performance by implementing elements like real-time truck tracking, automated route planning, digital proof-of-delivery and integrated communication with their suppliers. A complete supplier chain will lead to reduced supply chain delays, as well as lower transportation costs and greater customer satisfaction through increased visibility of delivery status and quicker response times.
E-mobile and user-friendly systems
Today, employees want their technology to be efficient, easy to use, and portable, but many of the older-style enterprise resource planning systems don’t provide employees with anything but a dated interface and therefore make it hard for them to adopt them. Today’s ERP systems need to give importance to usability and accessibility. Mobile-first systems will allow the employee to approve shipments, view the inventory, track the progress of deliveries, and get production data all on their smartphone or tablet. This enables much quicker responses to employees’ needs, aiding in user adoption of the application, and allowing for faster data entry from the field. The more user-friendly an ERP application is, the greater the operational value it brings to the company.
As a result, the legacy systems used to provide basic operational support are now out-dated and can no longer handle the main challenges of operating a modern cement company. The future of the industry will require sophisticated ERP systems that are developed via cloud technologies that provide functionality like real time visibility into your business; integrated logistics solutions supplier, customer, and internal logistics, predictive data analytics; and user-friendly interfaces. For cement manufacturers, upgrading ERP Systems is not just a technology decision but rather it is a Business Imperative. The cement companies that implement better digital systems will be positioned to improve operational efficiencies, lower costs, create stronger supply chains and compete more effectively in the future.
About the author
Veerendra Jamdade, CEO and Founder, Vritti Solutions, is an award-winning technology leader with over 33 years of experience driving digital transformation across manufacturing and enterprise ecosystems through ERP, CRM and WMS solutions.
Smarter Motion for Cement Growth
Synthetic lubricants have become a strategic choice
Why Traditional ERP Systems Fail in India?
Shree Cement Targets Above Industry Volume Growth In FY27
Co-processing systems deliver remarkably fast ROI
Smarter Motion for Cement Growth
Synthetic lubricants have become a strategic choice
Why Traditional ERP Systems Fail in India?
Shree Cement Targets Above Industry Volume Growth In FY27
Co-processing systems deliver remarkably fast ROI
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