A BUILDING MATERIAL GLOBAL LEADER
PROBLEM
Cemindo Co. is one of the world leaders in cement manufacturing but still a challenger in the Indonesian market. Cemindo Co. first wants to secure its current position in northern Sumatra market, and then to develop a strategy to be competitive in other Indonesian provinces. Logistics being major in the cement cost structure, Cemindo Co. decided to launch a detailed logistic benchmark over Indonesian competition and assess the current and potential strategic position.
CEL, being a long-time partner of Cemindo Co. regarding logistics in the region, we were asked to support their strategy
development in Indonesia.
APPROACH
Render visible and comparable
Benchmark current logistics competitive positions:
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Investigate infrastructure, logistics market, development projects, other industry
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Understand and document the logistics systems of competitors
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Assess Cemindo Co. cement bag delivery cost and compare with the competition
Evaluate GreenField opportunities
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Evaluate greenfield locations and assess their logistic viability, and environmental constraints
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Determine the ideal logistic systems & costs from greenfields to targeted markets
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Forecast logistic evolutions (eg. Infrastructure projects) and their influence on cost.
RESULT
The deliverable of this study allowed Cemindo Co. to position itself on the market and assess its current and potential
competitiveness. What was particularly appreciated by the Country Director was our ability to connect ground information with a strategic vision: we provided precise visibility on total delivered cost today and in the future, for both our client and its competitors. Our recommendations on greenfields, encompassing logistic, geologic, infrastructure, market and environmental aspects gave the visibility Cemindo Co. needed to take their decision whether to invest or not.
CEL
Supply Chain & Operations In Emerging Markets
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