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Cemex Technology Innovation Is More in the Distribution Process

Essay by   •  November 18, 2012  •  Essay  •  468 Words (2 Pages)  •  1,020 Views

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CEMEX technology innovation is more in the distribution process.

In 1989, the company developed Cemexnet, a satellite communications system that linked all the cement plants. The company also opened a central office to coordinate its production facilities. The manager could use Cemexnet to monitor operations and market conditions all over the world and to communicate using voice, video, Lotus Notes, and other technologies.

During the early 1990s, Cemex installed a logistics system called Dynamic Synchronization of Operations, which uses GPS technology to link delivery trucks to a central control center. The dispatchers can see the location, speed and direction of each trucks so they can make sure the deliveries were picked up by the closest truck to the production plants. They also had detailed information on traffic conditions, inventory and the customers' location, so that the truck can be reroute if there is traffic jam or when the customer changed the order in the last second. This technology initiative cuts the delivery time from 3hours to 20 minutes of the scheduled time. It increased the productivity of the truck by 35%.

Cemex's global digital program connects each element of Cemex's worldwide operations via satellite and the Internet. An online portal lets Cemex's suppliers, distributors and customers check their order status.

Cemex charges a premium for its services because of the efficiency it offers. But the result is significant savings in fuel, maintenance, and payroll costs, and a considerable increase in customer goodwill.

CEMEX Research Group AG (CRG) take a leadership role in developing and managing CEMEX's R&D initiatives and intellectual property portfolio. CRG aims to ensure CEMEX's industry leadership and strong market position by enabling the CEMEX operations to deliver the best-in-industry value to their customers. Although the other competitors also adopt the new technology, it's not easy for them to catch up with CEMEX technology.

CEMEX introduced an internal collaboration platform called Shift, designed to innovate and help make the company more efficient by letting employees or groups of employees with similar objectives share opinions, thoughts, information, experience, knowledge and best practices. Shift combines some of the best elements from popular social networking platforms and designed Shift as a social

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