IBM Planning Analytics for Cement Manufacturers
Solution for corporate finance management of cement plants
In 2020, the cement market experienced a downturn, with production down 3.1% and consumption down 4.3%. Given the market capacity utilization of only 52% and the general trend of declining cement consumption, this is a serious challenge for all cement plants, forcing market players to change their approach to their own business and principles of work, including with corporate finances.
There are 2 groups of countervailing forces acting on the business of cement plants.
Allowing companies to grow:
Easing restrictions imposed by the government to reduce the incidence of disease,
Introduction of preferential mortgages,
Growth in exports.
Inhibiting business activity:
Economic instability,
Freezing large projects,
Low utilization of cement plants.
All of these factors are forcing cement manufacturers to change their approach to organizing operations. Today, companies can't afford to go with the flow and maintain financially inefficient processes.
IBM Planning Analytics is a specialized corporate finance solution that includes:
Preconfigured budget model,
Preconfigured management reporting model,
Industry KPI structure (manufacturing),
Cost calculation model for manufacturing companies,
Financial model for strategic and business planning,
S&OP concept principles embedded in the model.
Benefits of IBM Planning Analytics Solution
Using IBM Planning Analytics for corporate financial management, cement plants can:
Increase the efficiency of capital investment planning and management,
Effectively manage equipment repair and maintenance costs,
Conduct financial planning with changing macroeconomic factors,
Optimize logistics costs, reduce delivery leverage,
Effectively manage leverage.
The solution takes into account specific features of corporate financial systems of cement plants, helping to apply the best world practices for the organization of your enterprise.
Building the budget models of the cement plant,
Carrying out factor analysis,
Creating company development and macroeconomic factors change scenarios,
CAPEX planning and analysis,
Debt management,
In-depth data analysis from all enterprise systems using artificial intelligence,
Optimizing production plan in terms of number of products, production units, regions, customers, types of transport, delivery volumes,
Planting data visualization using PCS,
Implementing new software tools and technologies.
