Cement Company
IDA Business AI
Cement Plant Takes the Queue Out of Dispatch
Trucks waited at the gate while three systems were reconciled by hand before a single bag could move.
Cement Company · IDA Business AI
Cement Producer Puts Landed Cost Per Market on a Daily Report
Freight and fuel decide the margin, and both were reported late enough to make the decision academic.
Daily
landed cost per market
6 markets
resupplied from a different unit
One model
for plant, depot and freight cost
The challenge
Selling into a market was a judgement about price, but the cost of serving that market depended on which plant or grinding unit supplied it, by road or rake, through which depot. Those costs were known at month end. By then the volume had moved, and the markets that quietly lost money kept being served the same way.
Our approach
We modelled landed cost across plant, grinding unit, depot and transport mode, fed by actual freight, fuel mix and clinker factor rather than by budget rates. Weighbridge, dispatch and invoicing were connected so a despatch carries its own cost as it happens. The commercial team sees landed cost and realisation for every market, updated daily.
The outcome
Supply routing changed for several markets once the delivered cost was visible against the realisation, and the fuel mix decision is now argued with the same numbers the plant and the commercial team both see.
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