EMT’s Breakthrough: Cement Manufacturing Innovation with Digital Planning
The cement manufacturing industry is no stranger to challenges, and supply chain leaders in this sector constantly seek innovative solutions to navigate the complex terrain of material distribution and operational optimization. This blog post delves into a remarkable Cement Manufacturing Innovation journey led by the Supply Chain Vice President at Eco Materials Technologies (EMT), a leader in the eco-friendly cement sector. EMT’s collaboration with River Logic exemplifies how strategic optimization tools can revolutionize cement manufacturing processes.
If you’re a supply chain leader in the cement industry, EMT’s story is a must-read. This case study explores how Sales and Operations Planning (S&OP) and network optimization enabled EMT to achieve integrated business planning success.
The Initial Challenge
Cement manufacturing remains a critical foundation of the construction industry. Yet, it has recently faced a downturn, especially in material production. With local resources in decline, EMT encountered an urgent need for Cement Manufacturing Innovation to maintain efficiency in distributing vital materials like fly ash and cementitious products.
EMT began by optimizing its fly ash network for the upcoming year, laying the groundwork for efficient logistics. Simultaneously, the company embarked on developing a Digital Planning Twin™, a digital model mirroring their operations and finances to support informed decision-making.
Counterintuitive Decisions for Greater Gains
During their transformation, EMT faced the unexpected loss of a primary material source. Rather than exiting the market, EMT used River Logic’s decision modeling to assess the real value of the affected market. Surprisingly, the analysis revealed that remaining in the market was more profitable—an insight only made possible through their new optimization tools.
Expanding Strategic Horizons
Following its merger with Borough Resources and Green Cement, EMT expanded optimization efforts across its entire business portfolio. This Cement Manufacturing Innovation included extending their planning horizon from 24 months to five years and incorporating broader financial goals.
Representing Complex Business Models
Developing the Digital Planning Twin™ was no small feat. EMT had to accurately simulate the complex interactions of its business. While some stakeholders were initially skeptical, the tool’s accuracy—achieving 95% precision in contribution margin projections—converted doubt into trust. The team balanced model complexity with usability to ensure practical applications.
Transformation Benefits and Real-Time Impact
The transformation yielded measurable results:
- Real-time financial analysis improved responsiveness to market shifts.
- Simulations enabled swift scenario planning for production or price changes.
- Enhanced collaboration across departments ensured alignment on goals.
Improving Budgeting and Forecasting
The Digital Planning Twin™ also transformed EMT’s financial planning. Monthly forecasts replaced the annual budgeting cycle, offering continuous alignment with financial outcomes. This innovation empowered EMT to adapt rapidly and manage financial impacts proactively.
Cement Manufacturing Innovation at its Best
EMT’s journey exemplifies the transformative power of digital tools in cement manufacturing. By aligning operations with financial strategy, EMT demonstrated that challenges can become catalysts for innovation and growth.
