How a young cement company grew 2.5x with organizational and functional transformation

One of India’s youngest cement manufacturing companies was looking to scale up sales volume within a commoditized and highly competitive market. The management determined that in order to achieve ambitious growth, an organization-wide growth and transformation roadmap would be required to help establish themselves as a powerful player in their core market.

Figure 1: Sales growth delivered as part of the program

The company sought a trusted and reliable consultant capable of crafting a roadmap focused on technology-driven growth and digitalization of business operations, keeping sustainability in mind. They chose EY to develop a multi-functional growth and digitalization roadmap and assist in achieving their ambitious plan by enhancing the company’s sales capability, establishing an organizational structure, processes, and technology to scale up operations profitably.

At the outset, EY worked with the company to identify and prioritize areas of improvement. We developed a growth and transformation roadmap that highlighted granular sales and realization improvement, data analytics driven supply chain optimization, manufacturing optimization through Alternate Fuel and Raw Materials (AFR) improvement, digital transformation, HR transformation and risk management modules. 

• Based on criticality, organizational objectives, and ease of implementation, we initiated phased execution of modules. Leveraging data and technology, we further channelized the growth and transformation process. 
  • For instance, to improve market serviceability, we implemented granular micro–market planning along with competitive landscape to assess growth opportunities, white space, and subsequent target setting. This initiative surrounding micromarketing was supported by setting up satellite grinding units, providing the company with a competitive edge over its peers.
  • Channel management: We enabled the company to put in place the ideal organizational structure to drive market penetration. Leveraging CRM, we enhanced salesforce effectiveness through PIP simulation, focused whitespace conversion and a digital governance framework. To enhance reach, we deployed a focused dealer acquisition program, ‘555’, which prescribes interventions required across 5 days/5 weeks/5 months of dealer onboarding for sustenance and ramp-up
• An EY team of multi-service line SMEs was instrumental in designing a cross–functional, future-looking digital roadmap for the company leveraging wavespace™. The three-year transformation journey encompassed 48 initiatives across seven functions. 
  • EY played a pivotal role in developing a sector-first Microsoft D365 CRM platform that enabled self-service, transparency, thus enhancing productivity and effectiveness for all stakeholders in a seamlessly connected ecosystem.
  • Design and implementation of an integrated S&OP process leveraging the Blue Yonder platform enabled the company to identify the least cost service plant/network, reduce delivery costs, and create network to meet and exceed customer service levels. The Blue Yonder platform for cement S&OP enabled the company to optimize warehouse locations and assess the feasibility of new plant locations based on demand clusters and predicted profitability.
  • Implementation of a leading Human Resource Management System (HRMS) to digitize end-to-end HR functions and workflows across performance management, daily operations management, recruitment, onboarding, etc.
• EY also assisted the company in various other spheres, such as data-driven analytics for optimizing supply chain, enhancing AFR, HR transformation and change management, and technology interventions to manage risk across specific business areas. For instance, the price discovery mechanism was enhanced through reverse auction, wherein EY enabled the company to leverage data and deploy strategic initiatives to address logistics cost outliers and deploy customer-wise differential freight for the same route on TAT.

By deploying business-focused technology interventions and an agile strategy, EY facilitated a multi-staged organizational and functional transformation for the company.

Figure 2: Multi-staged organizational and functional transformation

The multi-staged approach, spanning across four years, was aimed at identifying and resolving complex challenges allowing the company to achieve their ambitious growth objectives.

The company achieved scalability and profitable growth, increasing volume to 2.5x within three years (from 6MMTPS to 15MMTPS), enabling them to attain leadership in competitive core markets and enter new markets.

Building on this sustainable acceleration, the company has now set a new volume ambition target of 25 MMTPA. 

Figure 3: Agile digital transformation enabled sustainable business acceleration and cost optimization