UltraTech Cement is the largest cement manufacturer in India with an installed capacity of about 116 million tonnes. The company has production facilities in 50+ locations spread across the country and has plans to grow further through acquisition and green field expansion. The UltraTech brand occupies a premium position with a market capitalization of 1.5 lakh+ crores. The Indian cement industry has a capacity of 545 million tonnes and a supply demand gap putting pressure of prices due to excess capacity. The market has strong regional players in each Zone and has robust brand competition.
Supply chain is extremely critical in ensuring the delivery of cement from the manufacturing locations to the consumption centers. Further, cement is a distribution intensive product with focus in cement movement being on high volumes and low distribution cost.
Logistics function plays a key differentiator role through its distribution network and the focus has been on creating continuous value and service differentiation at each stage right from planning to delivery. The nature of cement consumption in urban locations is quite different from the nature of cement consumption in rural locations which calls for differentiated supply chain strategies to serve urban and rural customers. Keeping these factors in mind, having an agile and responsive supply chain is absolutely essential for attaining industry leadership.
An effective Vendor Management ensures an alignment of different categories of service providers to satisfy both internal and external customers, building relationship with Railways for long term policies and improving loading / unloading infrastructure. It is vital to focus on multiple variables like cost of delivery, mode of delivery, expected service level, protecting quality, creating facilities, use of technology, lot size, lead time, inventory management and optimal handling operations.
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📌 Zonal Operations Lead (India)
🏢 UltraTech Cement
📍 India
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