Cement supply chain management at a factory
Published On: May 20, 2024

The cement business is one of the most crucial industries for a country’s economy as it’s directly linked to construction. The construction industry needs high-quality cement for infrastructure development in both public and private sectors. However, high-quality cement isn’t readily available, and it’s not just the cement itself; the raw materials used to produce cement must also be sourced from good suppliers. Today, many cement businesses face inevitable cement supply chain management challenges that affect their operations.

Let’s explore a real business case from SCG International. When the cement industry faced challenges in the cement supply chain that affected the sourcing of quality materials for standard cement production, SCG International stepped in as an end-to-end supply chain service provider. With extensive knowledge and expertise in supply chains across various industries, a strong business network in over 50 countries worldwide, and a parent company with over 100 years of leadership in cement production, we provide solutions that address the cement procurement process and the sourcing of raw materials. As such, we work to elevate supply chain management in the cement industry.

Cement Supply Chain Challenges

Let’s explore the supply chain challenges for the cement business and SCG International’s solutions that help overcome these obstacles while enabling business growth.

Challenge 1 : Obstacles in Continuous Sourcing of Cement Products and Raw Materials

The cement business involves a wide variety of products, not just cement powder, but also the raw materials that must be mixed to produce various types of cement. They require high-quality, durable cement products suitable for various applications, including mortar cement, white cement, ready-mix plaster cement, and raw materials for cement and concrete. All of these supply chain components are used in the construction of buildings and infrastructure to ensure strength and durability.

Producing quality cement to meet market demand requires expertise in sourcing raw materials, selecting good suppliers, and preparing enough raw materials for each production run. This brings about challenges in cement supply chain management that the cement industry inevitably faces. Collecting raw materials from reliable sources and accurately forecasting product demand based on market conditions for precise purchasing and production planning requires experience and expertise.

Challenge 2 : Lack of Diverse Cement Product and Raw Material Suppliers

In addition to supply chain issues in sourcing raw materials for cement production, another challenge that impacts business operations is procuring raw materials. To produce quality cement with good strength and bonding properties, it is essential to buy raw materials from quality sources. However, using several suppliers to purchase raw materials may affect cement quality since it is difficult to control the quality of raw materials from different sources. Moreover, this leads to increased costs and time to verify reliability and product quality.

Challenge 3 : Difficulty in Maintaining Consistent Product Quality

The cement business competes on quality, so maintaining consistent product quality and raw materials is a top priority. If the cement being sold does not meet the standard, it will affect the business’s credibility.

Challenge 4 : Financial Risks

Another supply chain issue in the cement business that cannot be avoided is financial obstacles. Customers may find themselves in situations where they lack working capital to reinvest. This can arise from several factors, such as a downturn in the economy, causing many construction sites to close, leading to a lack of working capital. This makes it difficult for customers to negotiate payment terms with suppliers, eventually leading to business stagnation and difficulty in continuing operations.

Solutions from SCG International to Overcome Cement Supply Chain Challenges

Demand Sensing : Accurate Planning for Raw Material Requirements

As an end-to-end supply chain service provider, one of the standout competencies of SCG International is its ability to analyze and forecast market demand with precision and conduct efficient demand planning. This helps cement business customers plan their raw material orders to produce quality cement, ensuring a constant supply of products and preventing raw material shortages during high market demand. SCG International sources high-quality raw materials from reputable suppliers worldwide to meet production needs.

Source Validation : A Robust and Comprehensive Supplier Network

Sourcing cement products and raw materials requires consistency to maintain continuous production. As a one-stop shopping destination for those seeking comprehensive and high-quality cement products and raw materials, SCG International has a robust supplier network across multiple regions worldwide. We source high-quality raw materials for customers at reasonable prices that meet their specific needs. Additionally, our offices in various countries enable direct contact and inspection of each supplier, ensuring consistent quality product delivery.

Inspection : Quality Control by SCG Experts with Over 100 Years of Cement Experience

Before exporting products, customers must ensure their cement is high quality and meets industry standards and specifications. As SCG, the parent company of SCG International, has been in the cement production and distribution business for over 100 years, we have extensive experience and expertise in cement products. We conduct lab tests using experts in the field. This ensures that the products, whether from SCG or other customers, can be sold confidently, enhancing business credibility.

Financial Solution : Enhancing Business Liquidity

SCG International understands that flexible financial solutions are essential in the cement business because cement is often sold under long-term contracts. However, some customers may not be able to pay on time, causing our customers to lack working capital to reinvest in sourcing quality raw materials. We offer solutions to improve financial liquidity and reduce business risks, such as negotiating with suppliers to extend payment terms.

Logistics Optimization : Comprehensive and Flexible Logistics Solution

We offer comprehensive logistics processes flexibly tailored to meet customer needs, from monitoring currency fluctuations that may impact transportation to minimize cost impact, strictly following transportation regulations, and designing shipping methods suitable for different product types. Customers can specify shipment methods, split shipments, or determine shipment quantities per round. SCG International handles everything end-to-end, avoiding the need to coordinate with multiple companies, which can cause delays and increased costs.

Overcoming cement supply chain challenges through strategic partner collaboration

SCG International is ready to solve all your supply chain obstacles and increase the growth of your cement business. In addition to being a bulk cement supplier providing comprehensive services for the construction industry, we are also a supply chain partner serving various industries, including industrial supply, home and living, energy, paper & packaging, food & beverage, and recycled materials. We provide our services by blending knowledge, expertise, experience, and cutting-edge technology to meet demands and drive sustainable business growth.

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