Building materials take on the new world:
To become stronger, you must first become agile
Construction sites are reopening to a new world. Roads and bridges still need improving. There’s still work to be done for the building materials industry. The more long-term challenge is rising urbanisation, with 68% of the world’s population projected to live in cities by 2050, compared to 55% today.
Clearly, the building-materials industry has to come to grips with these global events. The more urgent need is recovery from the upheaval to our life and work styles. There’s still profit to be made, but who gets what, if anything, will depend on how well you optimise your operations and implement economies of scale.
How can you transport materials in a timely way?
How can you make it cost efficient?
The industry has always had to address these issues, but now there’s an unprecedented urgency to solve these problems and future proof your business.
The real question is, how can you emerge from recent events stronger?
The answer: you must become agile
The ability to react to any given situation at a moment’s notice is critical. In order to do this, you need agility. This will require a digital transformation.
Innovation is no longer a luxury. It’s a matter of necessity if you’re to make your business resilient. This is true no matter what area you work in, be it ready-mix concrete, cement distribution, or full loads and aggregate transportation.
A digital transformation cuts out the fat and enables companies to be agile. Processes are streamlined and automated. Data is collected in real time from every facet of your business to give you a 360˚ view of your operations. That data is then analysed, providing you with business intelligence so that you can make better-informed decisions, able to react to any situation. Planning yields accurate results, for example, such as seamless just-in-time delivery of time-critical materials to job sites.
In fact, digitalisation can reduce your planning time by up to 75%. Lower your mileage, hours driven, and CO2 emissions by up to 25%. Reduce the number of vehicles you need by up to 10%. Improve customer service by up to 33%. It can cut costs in every area of your business. This is just the beginning of your digital journey.
Rejuvenating your business is exciting – you can emerge stronger than ever before, able to take on any challenge in the future.
Explore: Informative videos and blogs to help you learn more
At AMCS, we can help you determine your next steps forward. We’ve put together content for you to explore to learn more. We’re also happy to answer any questions. We’re experts in complex logistics and complex logistics data models and can help you with end-to-end software designed specifically to address the issues concerning your business.
With best-practice Transportation Optimisation, you’ve got state-of-the-art technology ready to take you to the next level and beyond.
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Brochure Concrete Planner
Webinar: optimisation in aggregates distributionWatch the on demand webinar
As with cement and ready-mix concrete, two of the major opportunities for the aggregates industry are the rapid industrialisation and urbanisation in developing economies and the increasing mega construction projects across the globe. The rise of investments in infrastructure is driving the pressure on the global construction and building materials industry, including deliveries of aggregates, causing an increase in the sourcing of recycled and secondary aggregates in some regions. As primary aggregates are increasingly in higher demand, the future could depend on the secondary and recycled sourcing.
Webinar: Transport optimisation in cement distributionWatch on demanad webinar
Growing demand from construction activities supports the market growth of the cement industry and the market size for cement will accelerate accordingly. Cement distributors face especially difficult challenges with the cost of transportation constantly fluctuating. Around 30-35% of the price of cement comes from the distribution costs. Empty runs and having a strict, non-flexible planning scheme between vehicles, plants and regions drive the cost of cement distribution up even further. To protect margins and stay competitive, it’s critical for distributors to lower those costs.
In addition, this webinar covers other significant pain points in cement distribution that can also be addressed with smart technology and digitalisation. One challenge is managing large orders on large contracts, which can be bulk and/or bag orders. Manual planning can be extremely demanding on your resources. You need to ensure profitability on the orders to protect your margins.
Webinar: Transport optimisation in ready-mix concrete distributionWatch our on demand webinarGrowth in the global ready-mix market is driven by a rise in demand for sustainable infrastructure, the increase in urbanisation and industrialisation in developing countries, as well as a surge in construction activities in general. Timely delivered loads of ready-mix concrete are essential to assuring both continuous work at the construction site and a high quality poured ready-mix. Real-time re-adjustment of planned orders is therefore of the utmost importance.
Unicon Case study
Unicon has significantly increased the productivity of their fleet with AMCS’ Concrete Planner solution.Unicon is a part of the Aalborg Portland Group and a subsidiary of Italian multinational Cementir Holding, which specialises in the production and distribution of grey and white cement, ready-mixed concrete, aggregates and concrete products. Over the years the Cementir Group has grown to become the global leader in the production of white cement and Unicon the leading ready-mixed concrete manufacturer in Scandinavia and the only cement manufacturer in Denmark. The company is now present in 18 countries across 5 continents.
Unicon has increased the number of deliveries per truck per day by 20- 25% and saw a 1-5% increase in revenue resulting from more accurate charging of waiting time.
System Coordinator at Unicon, Hans-Christian Wattum, says “AMCS Concrete Planner has supported us in developing a highly efficient and flexible delivery model which has significantly increased the productivity of our fleet. The increased automation of our systems and adoption of mobile technology has significantly improved our ability to capture additional costs such as waiting time and ensure it is billed fairly and accurately.”
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Extract maximum value by driving efficiently
Years of experience in the field have given AMCS the expertise to target the solution specifically at the building materials sector.
In order to meet the unique demands which characterize the industry, AMCS’s state-of-the-art transportation optimization system includes a number of special features for the different types of building materials: Ready-mix concrete, cement, aggregates, prefab, metal products or other building material products.
Below, you will find examples of functionality specifically for the building materials industry, but AMCS offers a lot more and will be pleased to give you further details on the possibilities within the specific type of building materials distribution/transportation in which your company operates
Selection of industry-related functionalities
Automatic splitting of sales orders into loads according to vehicle capacities
- Ensuring a steady delivery flow of loads during larger deliveries (shuttle delivery, time between loads or cubic meters delivered per hour)
- Planning across plants and sharing of vehicles
- Allocation of loads to vehicles according to qualifications, cost profiles and availability
- Ability to handle pumps, PUMIs as well as regular vehicles in the same optimization
- Planning according to recipes and production sites’ production capabilities
- Identification of next load which should be subject to quality assurance check
- Real-time execution and re-optimization, based on order adjustments, urgent orders and on real-time communication with GPS tracker, mobile system, vehicle equipment and production system status
Planning with multiple silo locations and multiple loading heads per silo
- Ability to plan loading for vehicles with several compartments per truck and trailer
- Ability to plan both bulk transport and bag distribution in the same system
- Inclusion of customers’ own pick-ups in the plan to cater for silo capacity
- Decision support for diverting return materials to avoid costly off-loading and warning about return load product contamination
- En route redirection of loads to customers experiencing sudden dry running
- Monitoring of customers’ stock levels as well as forecasting and planning of next cement delivery
- Live monitoring of execution and on-going re-optimization of plan in real time
- Support for dealing with key operational exceptions; e.g. vehicle breakdown or loading head outages
Moreover, the system smoothly handles an extensive list of unique requirements within transportation and distribution of metal products, aggregates and prefab. These requirements include the following:
Handling of complex order picking of metal / prefab products directly to truck at warehouses
- Pre-loading of products before the tractor picks up the trailer
- Automatic order creation for aggregate transportation, based on customer stock levels and consumption curves
- Handling of loading restrictions for quarries, e.g. limitations on loading equipment to be used for aggregate transportation
- Ability to plan multi-day trips for delivery and shunting
- Ability to move products from hanger to vehicle en route
The advanced IT system enables companies to improve operational efficiency significantly and achieve major savings in transportation costs.
An increase of 15-25% in the number of delivered full loads per vehicle (ready-mix) and 10-20% reduction of driven miles for other distribution/transportation types
- Reduction of 5-10% in the number of vehicles
- A remarkable improvement in customer service levels, including the ability to meet tight time windows
- Between 30 and 75% less time spent on planning and resource scheduling
- 30-60% reductions in time spent on registration and follow-up
- Significantly increased employee satisfaction due to a stress-free planning and order-entry environment
Over the years, the features of AMCS’s solution have been developed, based on extensive industry-specific knowledge which AMCS has acquired from customers within the industry. These references include: Unicon, Aalborg Portland, AfriSam, Tarmac and Lemwigh-Müller.