Connecting locations with intelligent network planning
Holcim builds progress for people and the planet. As a global leader in innovative and sustainable building solutions, Holcim is enabling greener cities, smarter infrastructure and improving living standards around the world. With sustainability at the core of its strategy Holcim is becoming a net zero company, with its people and communities at the heart of its success. The company is driving the circular economy as a world leader in recycling to build more with less. Holcim is the company behind some of the world’s most trusted brands in the building sector including ACC, Aggregate Industries, Ambuja Cement, Disensa, Firestone Building Products, Geocycle, Holcim and Lafarge. Holcim is 70,000 people around the world who are passionate about building progress for people and the planet through four business segments: Cement, Ready-Mix Concrete, Aggregates and Solutions & Products.
by taking into account the market situation and other parameters during planning.
With a consistently high service level for the customers:
supported by what-if scenarios on a strategic level.
Through balanced utilization of production capacity and reduction of inventories:
Network planning in anticipation of future challenges
The goal of the project was to ensure the cost-optimized production and delivery of cement to end customers within a complex network consisting of many international production and warehouse sites. To reflect the real business challenges into the mathematical algorithm, the project team has been working closely with business functions, including Sales, Production, Logistics and Finance, aiming for even more reality-based optimization outcomes.
The project details are explained in the following:
By using NetOp-OPTANO, the organization should be able to anticipate and respond proactively to future challenges. This involves ensuring the correct evaluation of relevant options and achieving value capture through proper network design. This should foster the company’s ability to optimally plan all strategic and tactical options required for its business activities.
Holcim is a customer-centric company, which means that each customer is to be supplied at the desired time, in the desired quantity and quality at the best possible price. Supply chain management is correspondingly complex and takes place at national level. In a dynamic business environment with heavily fluctuating market demand, volatile raw material and energy costs, multi-echelon supply networks as well as unexpected machine failures, it is crucial to make optimal decisions on daily business operations. Complex interdependencies and cross-dependencies must be taken into account in the planning process. The factors of planning quality and time are therefore of decisive importance.
NetOp-OPTANO supports strategic decision-making processes with what-if scenarios related to the supply network. It facilitates the identification of the best supply model, capacity utilization of plants and equipment, and the best sourcing alternatives. This solution enables optimization of the supply network, taking into account production and logistics costs, selling prices, demand, capacities, and constraints in production, storage, and logistics.
Tangible achievements by applying NetOp-OPTANO are:
- balancing supply and demand to support S&OP processes
- cutting costs while maintaining customer service levels
- reducing inventory
- optimal make-buy decisions
- footprint review
Dr. Dominik Hollmann
OPTANO Project Manager
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