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CASE STUDIES

Eagle Cement makes data-driven decision with Ramco

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Customer Challenges

Eagle Cement Corporation operates the largest cement plant in the Philippines and is the fourth largest player in the country. It was generating double-digit volume growth in 2021 despite the impact of a pandemic. It had a positive impact on overall revenue, despite a dip in the average selling price of cement. However, Eagle Cement's costs were rising, and profitability shrunk. The erstwhile Enterprise Solutions provider that offered broad-based solutions could not tackle these challenges specific to the customer situation.

Some Key Challenges Faced by Customers

  • Lack of clear and consolidated visibility into cost leakage at the top
  • Business processes require manual and redundant activities leading to higher cycle times
  • The reports for top leadership were prepared on spreadsheets manually by accessing multiple data sources making them error-prone, time-consuming, and a tedious exercise
  • Cement Manufacturing entails maintaining heavy equipment at the plant; the maintenance costs of the plant were escalating due to a lack of equipment level budget and cost planning
  • Spike in demand led to pressure on fulfillment operations that could potentially impact their customer experience and deliveries
  • Eagle Cement's Enterprise IT needed a transformation and hence they were looking for a partner that could not just provide IT infrastructure, but also understands their business problems and guides them through their transformation journey.

 

A Consultative Approach

Ramco Group comes with 35 years of Cement Industry experience. Being a cement expert, Ramco's domain consultants conducted several workshops with key customer stakeholders including C-Suite executives, Department Heads, and Execution Teams. The workshops resulted in the identification of gaps and redundancies in existing business processes, a roadmap to integrate business functions, and a blueprint for improved reporting designed for faster and precise decision-making. Automation, process simplification, and system intelligence were key pillars of the proposed approach.

Solution Elements

Ramco's implementation team took a modular and smooth approach to help the customer migrate to the new system. It factored in the best practices from the Cement Industry and designed the processes and KPIs in accordance with them. The solution served as the information backbone for the entire value chain providing a single version of the truth and enabling informed decision-making. It was an integrated, highly scalable on-premise Enterprise IT solution.

Solution Framework

  • Tracking and control system to monitor cement production cost
  • A complete asset management solution to manage plant assets across their lifecycle, tightly integrated with Finance
  • Process digitalization through real-time interfaces with DCS/SCADA Systems to enable predictive maintenance
  • Ramco visualization frameworks with dashboards and GIS for corporate performance management

Key Benefits

After the solution was implemented, there were significant cost savings improving the profitability (EBIDTA)

  • Improvement in turnaround times due to streamlining the processes
  • Cost-saving opportunities and real-time savings visibility
  • Pertinent insights are generated for the decision-makers at both plant and corporate levels
  • Accurate planning and budgeting at the equipment level improve asset performance over time
  • The shift from monthly to daily reporting resulted in a reduction in end-of-month reconciliation time
  • Real-time integration with Lab Information management System (LIMS) to monitor quality

A Unique Delivery Model

The solution was implemented during the COVID-19 pandemic completely virtually by a team of 10+ Ramco consultants. Ramco trained 30+ Eagle Cement users on the ingenious solution. Ramco's deep domain expertise in optimizing cement business processes coupled with technological prowess proved invaluable. This perfect combination is what is needed to transform and enhance the profitability of cement and allied industries.

Ramco has been a partner of Eagle Cement Corporation in its Digital Transformation Journey. Our ERP and HCM implementation, integration, and digitalization help our company improve efficiency, processes, and transparency. Our ERP systems are integrated with other systems like LIMS, Truck scales, RTI Automations, and GPS. In addition, our Facial Recognition is integrated with HCM HR System. All this has been made possible by Ramco. Enabling portals for Customers and Vendors help us reach out to them in a digital way providing them transparency and ease of transaction with our company. Mobility solutions enabled our users to access the system anywhere on any device, thereby increasing productivity. Dashboards and reports provide holistic visualization of our data in systems that improve visibility and analysis to facilitate timely decision-making

Paulo C. Munoz, Eagle Cement, Head of IT Systems
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