How a cement manufacturer got its act right through a smart sales and revenue strategy.
About the customer
A large cement manufacturer and market leader with offices and factories across India, and significant player globally.
Cement Industry: Annual Sales Planning & Revenue Optimization
SUPPLY CHAIN LOGISTICS
Business Problem
With its widely dispersed operations, the management needed to have deep and layered view of its health (financial, logistical and sales) on a daily basis. This was necessary to formulate its annual sales and revenue projection, taking into account the macro industry environment and competitive factors. The challenges for ORMAE included:
- Grasping the size of the problem, and the necessary data cleaning and shaping.
- Understanding the industry-specific business rules and constraints.
Our Approach
With the deeply researched data in hand, ORMAE's team brainstormed on the solution components that included:
Algorithm
- Developing a bespoke algorithm with Python Pulp and Gurobi Commercial solver.
Input
- Collating pan-India region-wise demand for multiple brands, type of purchase (in loose quantities or as bags).
- Manufacturing plant information (grinding unit, clinker utilization factor), plant – to – market linkages (within each region incuding distance and freights).
- Algorithm development – clinker transportation network between plants, Cement transportation network (between plant to market) as per region-wise demand.
- Development of a cement network optimization model to identify key links and flow between plant and market.
Output
- Total logistics cost: Pan-India, region wise, and SKU-wise.
The Result
The sales planning and revenue optimization model developed by ORMAE faithfully delivered on both fronts. The client observed a 10% – 15% increase in its annual contribution from all over India.
Get in Touch
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Send an email to bd@ormae.com
for availability and enquires.