Cemex and its Technology Initiatives*



Case Code : CLSDM025
Publication date : 2005
Subject : Sales and Distribution
Industry : Cement
Length : 04 Pages
Price : Rs. 100

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Key words:

Cemex, Technology, CemexNet, Global Satellite Communication System, Lotus Notes, Internal Communications, Mexico, Dynamic Synchronization of Operations (SDO) System, Ready-Mix-Concrete, Unpredictable Demand, Delivery System, Global Positioning System (GPS), FedEx, Exxon, 911 Emergency Ambulance Service, Competitive Advantage, Productivity


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Cemex, the third largest cement manufacturing company in the world, used technology extensively in its business operations. The caselet focuses on one of the significant technology initiatives, the dynamic synchronization of operations (SDO) system, which automated the Mexico-based company's ready-mix concrete distribution process. The caselet throws light on some of the problems faced by Mexican cement companies in delivering the ready-mix concrete to customers. It elaborates on how Cemex designed and implemented SDO. Finally, it examines how Cemex benefited by the use of SDO.


Technology as a competitive advantage in sales and distribution
Design and implementation of IT systems in sales and distribution
Distribution flow in a manufacturing company


Mexico-based Cemex, the third largest cement manufacturing company in the world, was established in 1906. It grew to have a presence in over 50 countries with an annual capacity of 97 million metric tons. For the fiscal year 2004, it posted revenues of US$8,149 million and a net profit of US$1,328 million...

Questions for Discussion:

1. Companies are increasingly leveraging on technology to gain a competitive advantage, thereby increasing market share and the mindshare of customers. Discuss how implementation of SDO helped Cemex gain a competitive advantage in the marketplace.

2. Cemex being a global company has its operations in many countries. In your opinion, what are the challenges that it might face in implementing such a system in other countries?