In the top 50 multinational companies in developing countries, Cemex company ranked third, and was named the U.S. magazine In 2006 its sales reached 180 billion U.S. dollars, is now the world's largest cement companies, is the world's largest white cement producer, mainly in cement and clinker, concrete products production and sales. Cemex was also known as the
Cemex's century-old three times along with the modernization of the Mexican wave, also experienced several economic crises in Mexico, 20th century, 70 years ago, it has been steady development until the third of its business managers Lorenzo Zambrano After the charge, Cemex company really started leaps and bounds. Under the leadership of the Lorenzo Zambrano, in less than 30 years, Cemex has experienced two major leap in the homogenization of the cement industry competition.
for the first time over: the use of information means to resolve the countries, communication facilities and transport facilities there are many problems. From this, Cemex company's prospects do not seem good, before 1984, Cemex cement company and other businesses, also faced the problem of cross-regional sales management. Cemex cement plant has six independent, but in terms of the cement plant is a management nightmare, as the cement between the plant and plant scheduling, delivery and intricate and inefficient, often because of shipping delays, late delivery and order Cemex to withdraw most of the customers order.
cement business is just the sand and gravel mixed in an appropriate proportion of it? Homogenization of cement products in the era of competition, customers are more concerned about what? Through insight that Cemex: Cement is a kind of In the rigid cement industry won. 3 hours prior to delivery of Cemex cement, but also customer orders 48 hours in advance. However, the construction industry has a lot of unpredictability: More than half of the customers at the last minute to cancel the order, which not only brings to the logistics of Cemex,UGGs, the customer have to pay a penalty for this.
how to differentiate the competition and increase customer satisfaction? Cemex company changed the competitive direction, it promises to customers: to ensure that within 30 minutes with cement mixed with water can be transported to any place in Mexico, otherwise it will give customers a discount of 5%, in addition, even in transit, changes in customer orders no extra charge. Commitment to the introduction of this service customers get a positive response, rapid delivery time to Cemex of fame, so it was dubbed the home delivery within 30 minutes.)
order to achieve timely delivery, 1985, Cemex company has set up an information technology department, and the establishment of CIO position, which was the Mexican cement industry is breaking new ground. The first is the operation of the factory automation, followed by sales and accounting are also automated. The late 20th century, 80, the company has also established a satellite network, can transfer all the data within the company to the Monterrey headquarters, so that headquarters can be monitored.
Each truck is assembled by a computer and a global positioning system, the location of these vehicles with factory production and customer orders connected, Cemex company not only able to calculate which car should go, but also on the way guide the vehicle to achieve the optimal allocation of resources.
In order to do independent work, on time delivery and flexible customer service, Cemex company FedEx (Federal Express, has established a global delivery system, the flexibility to handle unexpected demand), Exxon (Esso oil, according to unexpected situations in an orderly manner to mobilize its global network of tankers, not because of weather, shut down the market or political factors) and Houston's 911 (Houston Emergency Center, according to the message can quickly approximate the emergency service center assigned to the rescue ), and other business models for learning objects, the introduction of customer order management system and network management systems supplier to its subsidiary factories, truck fleets and suppliers for dynamic real-time tracking, greatly enhancing the efficiency of production.
real power of information technology companies to expand abroad in the Cemex had become more significant when the expression in 1992, Cemex has taken the first step in its overseas expansion, bought two Spanish cement plant, and then reach and stretch Asia, South America, Central America and Egypt, more than 55% of the company's business outside of Mexico.
second time span: The target turned to low-income persons, to provide housing solutions
adjust market focus: shift from the B2B B2C. 1994 to 1995 outbreak of the economic crisis in Mexico, Cemex found a decrease in sales in the construction industry up to 50%, home market sales are down 10% to 20%. Cemex has decided to reduce the cyclical nature of the construction industry's reliance on the domestic market instead increase the degree of importance, domestic market is composed of many low-income housing are composed of self has been the most profitable company Cemex plate , accounting for 35% of the total Mexican market.
main difference between the two markets which have acquired from each customer's average sales are different: for the construction industry, trading volume, but under the policy, economic factors, large; a small amount of family-oriented transactions But stability, although, compared with customers in the construction industry average profit is slightly lower, but the total is very impressive. The question is, how low-income persons for the sale of cement?
multiple brands for different markets. Because of the limited purchasing power of low-income families, tend to buy small packages of cement. For them, Cemex cement company used was not the kind of large quantities of Western industrial sales model, but rather learn from Procter & Gamble, consumer goods model. The same as Procter & Gamble, Cemex multi-brand strategy to different brands for different market sales in Mexico, geographic distribution of its brand: in the north to Monterrey (Monterrey), in the middle is a Toltec (Tolteca) , in the Yucatan (Yucatan) Peninsula became Maya (Maya). Cemex's cement bags in a prominent position on the label the name of the local brands, while Cemex is only a smaller font as an endorsement of the brand there.
Despite having a house built of cement in many low-income people in Mexico dream of, but most people do not have adequate and continuous savings to buy construction materials, if the potential demand for the release of this part of the conservative estimated annual market value of 500 million 6 billion U.S. dollars. In 1998, Cemex provides a way to solve this problem. In Mexico there is a supportive system (tandas), which is a traditional community savings plan, saving money is often used for marriage ceremony and other adult ceremony, Cemex discovered this, and it built their own homes with plans to buy cement together, the introduction of financing and technical services with Patrimonio Hoy program, which is in the
the program first for the average family income at 5 to 15 U.S. dollars between the communities. Women are the plan's link (in Mexico, traditionally women are responsible for accumulation of capital, purchase of household goods.) Cemex to recruit women to the community, so that they form three groups of After 5 weeks, Patrimonio Hoy to the 5 weeks credit. If the
in Cemex Patrimonio Hoy program distributors to lower profit margins, only 12%, while the industry average profit margin of 15%. But distributors are enthusiastic, because the customers participating in the scheme of cement and sand, gravel and other raw materials, the stability of the demand profits make up for lower profit margins. Seemingly, the method used for low-income people credit loan lending than the traditional model has a greater risk, but the actual risk is very low, according to statistics delinquency rate has been below 0.5%.
Patrimonio Hoy program has stimulated the rapid growth of demand, choose the construction of new houses increased by 20% of families, and many house plans to build more than the original 2 to 3. Cemex acquired a 15% monthly growth rate, and can sell at higher prices of cement.
addition Patrimonio Hoy program, to improve the living conditions of low-income people in Mexico, Cemex company and the Mexican Government jointly launched a Piso Firme program targets low-income housing is covered with concrete floor, to reduce pollution and disease. This measure since 1995, Mexico has benefited 200,000 families.
The program began in 2001, working in the U.S. for Mexican immigrants, it is the Patrimonio Hoy program of derivative products, is currently in Chicago, Houston, Texas, California and other Mexican immigrants living in America to promote the more concentrated areas.
Mexico conservative estimate of the number of migrants in the United States more than 1,500 people, the annual total of over 16 billion U.S. dollars remittances, remittance income is one of Mexico's three major revenue, but the cross-border transfer fee is high, with most money in medicine, clothing and other consumer items, including 30 million for the property. These immigrants in the United States are generally engaged in the work of grass-roots work, the survey shows that more than 58% of people want to earn in the U.S. hard-earned money from his hometown in Mexico for housing construction. Who carries dreams, hopes his house in Mexico or build a family repair the house, but often faced with the dilemma: they do not know how to build houses in Mexico, how much cement, how much raw materials, Mexican banks will not lend money to them because they are not living in Mexico, and U.S. banks will lend to them to build a house in Mexico.
Cemex launched a plan to help Construmex Mexican immigrants living in America's dream, it took , for some can not open a bank account in the United States of Mexican illegal immigrants living in America, but also provides a very convenient cement and other building materials ordering and transportation services. Cemex cement company will be ordered and delivered directly to designated township building materials, can also provide professional residential housing construction design, consulting and even loans.
Cemex company also introduced to their new home sales, the most popular is an area of 1400 square feet, a living room, two bedroom affordable housing a kitchen, four walls with the roof, building materials, some about $ 6,700, plus doors and windows and labor costs, Cemex launched the company to $ 14,000 can be obtained by way of installments (monthly payment $ 300), such as no delay in the construction schedule, payment is only about a year to stay ahead . Cemex has designed this line of credit payment, the needs and repayment ability of immigrants to establish a connection, to 2006, more than 5,000 immigrant families to participate in this program.
Like many developing countries, in Mexico, people often buy cement from small hardware store, buy a bag once, which means that sellers need to cement a regular basis to thousands of dealers nationwide delivery, the logistics challenges that only with a few more than dealing with large construction companies is much greater, it brings to the management of distribution system pressure. Most small Wujin Dian and Mexico are the family unit's small businesses, the traditional concept of Mexico can hope he does business from generation to generation, so much the number of shops, small-scale sales is not high, while also facing the emerging the impact of large supermarket chains, the competition fierce.
2001 年, Cemex in Mexico launched a As long as the small shops put up Construrama sign on the door can be Cemex's consulting services business in return. Business consulting, including building and construction professional advice to help them to provide customers with value-added services. Member companies can use the program to train employees and family members, which makes the traditional hardware stores in Mexico increased competitiveness, enabling them strong in the face of the emerging home stores (such as Home Depot) is to get some protection, but also helps Cemex establish a distribution network loyalty. As of 2006, has 2,100 stores in Mexico to join Construrama program. p>
Cemex company twice over the revelation
Cemex's two leaps and bounds, for the first time by virtue of information technology to the homogenization of the cement products through differentiated services brands stand out in the competition to achieve profitability upgrade, one of the world top ten; second time, to look from a high-volume enterprise market to small and scattered individual markets. Cemex cement company redefined - the cement is not only low-income people to build a house in need of functional products, and is living in low-income people achieve the dream of the emotional product, the profitability of the enterprise and social responsibility objectives well integrated and do good business and do it well (Do good business and do good). It has changed the developing countries rely on cheap labor cost and price advantage to win the old tune, with innovative business strategy, technology and management win the competition. This rapid development of China's cement industry, the same with the reference.
a revelation: The world's most exciting and fastest growing emerging markets, where? Top of the pyramid is a sheltered those high-income class it? No, the most easily overlooked in our place. Over the years, multinational companies avoid the They do not live in the countryside, that is, the city's slums, making traditional advertising strategies and marketing channels can be carried out even if, it is difficult to take effect.
Therefore, this part of the person to carry out effective marketing campaign, to be inventive. Rural China is still in a state of underdevelopment, half of villages without running water, nearly 70 million farmers need to improve housing, the future is enormous room for rural construction. If for the rural market characteristics, the development of rural demand for products and services, the market will be very broad.
Revelation II: product homogeneity, the use of services innovation. Cement is a popular commodity, but the Mexican company Cemex successfully put that product into a service. They noted that most customers do not care about price, but the cement on time, timely delivered. Moreover, Cemex's service innovation not only in time delivery,bailey UGG boots, and its technical advisory services, with lending services, financing function is a model of service innovation.
Revelation Three: functional product into a emotional products. Cement is cold, but the cement behind the dream of making it a warm room. Since the company launched Patrimonio Hoy Cemex plans to cross the boundary of functional products, cement become a gift to the gift, the rapidly growing demand. So far, through the Patrimonio Hoy program, self-builders cement consumption increased by 2-fold, from 2,300 pounds every 4 years, 15 months increased to 2,300 pounds each. Mutual aid plan to sell the cement through the predictable, which makes Cemex the cost, because the inventory costs, production process more streamlined, lower cost of capital, more than 13,000 Mexican families participated in the program.
2007, the promotion of the program off in South America, now has 100 centers, has helped Mexico, Colombia,Bailey UGG boots, Costa Rica, Nicaragua and Venezuela, over 208,000 families, this program has demonstrated its replicability and sustainability, and received the 2006 World Chamber of Commerce (ICC) awards, the United Nations Development Programme project, Prince of Wales International Business Summit Award.
Revelation Four: Information technology has brought innovation speed advantage. The initial Cemex also despised by the international peers, but its president, Lorenzo Zambrano combined with timely introduction of the reform of outstanding IT technical staff, so that the expansion of M & A than Cemex Holcim and Lafarge (the other two world's leading cement company) more advantage. While competitors have a lot of foreign Cemex plant before, but they need to spend more energy to overcome institutional inertia, and spread a unified national information systems branch, which, Cemex in Mexico has already implemented many years, This innovative game, who are fast, who is the winner.
Appendix
Mexican Cemex's ready-mixed concrete delivery management
1997 年 6 months, in the work of Ronald Orr TRW sent an e-mail articles published in the This is an excellent book view application examples.
Cemex is the world's third-largest cement company, has 20,000 employees, with nearly 500 plants, thousands of vehicles, vessels and for contact It is distributed in over 60 countries under the corporate communications satellite. each employee a year to create the value of nearly USD 150,000, approximately 200,000 employees with a U.S. aerospace giant's annual output value of flat. The output is a ready-mixed concrete creation of such a commodity, not from the most sophisticated and mature aerospace technology or a product innovation.
company experienced a period of transformation began its economic hardship. ready-mixed concrete industry being Shipping time to the site can not be troubled by this issue .2 / 3 of the delivery request can not be fulfilled on time. for different reasons: The customer is not ready, trucks, half-way lost or due to traffic congestion and bad weather delays. company received telephone complaints over delays in scheduled delivery of concrete on the phone. At this time, management finally decided to take a test, enable the principles of complexity to solve the problem. they will the company into a self-organizing systems, he gladly accepted a state of disorder and uncertainties, and learn in such a diverse and changing environment, flourish, rigid, advance planning is not possible to expect such a fast changing situation, and can not respond quickly to this.
There were two central issues: uncertainty and the future. When coming closer to the present time, it will be less of course some uncertainty, more predictable. Therefore, the next question is how the company can make the future more Yunzuo close now. How can I do an hour in advance, rather than a day or two will be able to deliver when needed in a timely manner and order when the delivery time only an hour difference, the future is indeed closer to the present. company that can do this point, it will look like it to face the situation of disorder order ready-mixed concrete, Cemex's management needs to look into the future, to see how their company clients to respond to the request at any time, but these requirements involve time and place are randomly arranged.
Cemex found a forward-looking approach. Cemex's panel visited, a division of Federal Express, Federal Express courier services to undertake 24 hours, no special group for their critical services to admire deeply. a bolder, more attractive idea also will be created. They then visited the 911 major U.S. cities the fire, first aid center. Anyway, no one required 24 hours in advance by calling 911 services ; call comes in, the emergency does not happen in the future, but in front. This is a special group to look for patterns, this is the future of ready-mixed concrete company.
Mexican cement company CEMEX Construction Information Road
1998 年 Forbes magazine has described the regional cement company CEMEX for products in 23 countries on four continents around the world, and in 1999 became the world's third largest cement company, cement capacity of more than 7,700 million tons, the rate further over the top two cement companies.
hard to imagine a Mexican cement company (CEMEX) in order to shorten delivery times, which in ten years, and everyone side by side so that the transcendent power old industry - the cement industry, due to the implementation of business process reengineering and inspire the magazine describes the current CEO Zambrano is one of the most intelligent of the hundreds of millions of entrepreneurs. CEMEX is how the company developed from a regional cement products in 23 countries on four continents around the world, and in 1999 became the world's third largest cement company, cement capacity of more than 7,700 tons, the rate further over the top two cement companies do
cement concrete idea of the three main ingredients, but is gray and has a mixed to produce a change in product characteristics , an outdated industry. The manufacture of such products CEMEX is a Mexican cement company, CEMEX Mexico, located in Monterrey, is a nearly 100-year history of the cement company CEMEX in the past 16 years, data transfer and transport in a thorough reform, not only in the procedure to be completely changed, more committed to using IT (Information Technol-ogy) technology to build Cemexnet, DSO and global digital systems, and fully operating in emerging and high growth markets.
back In 1984, when the CEMEX cement with the rest of the world are not so different companies, CEMEX cement plant has six independent, but in terms of cement is a nightmare for managers, because between the cement plant and factory scheduling, transportation complex and inefficient, whether transportation or labor issues often make most of the customers CEMEX because they can not withdraw on time delivery and order.
because customers can not tell the exact time of delivery, so the response can only be vaguely - about three hours, the time of uncertainty and delay in customer projects, resulting in increased costs, delivery delays this situation is common at the time, no one can do any improvements.
reborn
< br> Lorenzo Zambrano in 1985 from his grandfather (CEMEX's founders) in the hands take over this business, he recalls, was appointed as CEO, you seem to get along with the stones, but found ineffective nor CEMEX is a customer service not to mention demand forecasting company. Zambrano to make his ideas can be implemented, and understand the importance of information value to the company.
Zambrano to start from scratch reform, he more they want an efficient supervision and management of the plant , the more angry he actual data of the shortage of plant operation, thus raising up a group of programmers dedicated to the operation of the plant information into a report automatically printed Gelacio Iniguez In 1987 appointed as CIO, both in the company for the transportation and management meetings how to forecast customer demand and find a solution, in other words how to use information technology to improve manufacturing processes and overall mode of operation, CEMEX has not yet established in the same time IT (Information Technology) departments.
1987 established IT department head The CIO Luna is currently quoted, CEMEX was basically there are some computer programs used in the calculation of accounting, but it is clear that this is not what we need, what is needed is a professional IT department to help solve the transportation and forecasting needs. But IT departments set up, as established by their nature can not, like other affiliates, and then separate from the organization into another new company.
because there is no cement in the production and delivery efficiency, so Zambrano determine the actual visit in the production and delivery of practical experience on the success of the company,UGG boots clearance, the selection of a Fed Ex, Exxon and the Houston unexpected demand.
● Exxon-by unexpected situations in an orderly manner to mobilize its global network of tankers, not because of weather, shut down the market or political factors.
● Houston - by roughly the message, and can quickly assign the emergency rescue service center.
Zambrano after the visit to get a view of the practices, so the Zam-brano its IT team decided to start from the CEMEX change forward towards the best customer service, prompt treatment can not predict emergencies. CEMEX to be independent operations, on-time delivery and flexible customer service, therefore decided to Fed Ex, Exxon and the Houston passed, but we also know at this time is the optimal time to set up IT departments. IT department is beginning to build integration, IT departments focus on the development of more complete information capacity (Information Capabilities) to enhance the company's operating performance and customer service quality.
ability to integrate information on the development of information capability
CEMEX is divided into three stages:
first phase of infrastructure construction:
the control center in Texas, and the use of satellite, fiber optic, microwave phase-connected world of the plant site.
1989 年establish Cemexnet, a by satellite transmission, to the plant data series, aggregated into a real-time information. And Cemexnet real-time summary of the various functions in addition to vendor information, and it is easy to coordinate the supply and demand of the cement plant, it can be compilation of real-time financial data into useful information, and gradually made toward the automation of internal operations. As Cemexnet to build success, so that between the cement plant for real-time synchronous dynamic * and treatment delivery matters.
second stage: automation of offices and factories
automation, build Yitao like NASA control center and decision support system.
1990 early, and built a DSO (Dynamic Synchronization of Operations ) system, re-use GPS (Global Positioning System) GPS navigation technology installed in each truck is equipped with a GPS transmitter and a laptop computer, the control room all the trucks and linked into a network of hollow, so a to the central dispatcher can control each truck location, speed and direction, and can be very clear about the actual situation of each truck.
need to check the computer before the delivery driver, calculated by the computer instructions that route, and sent for this last point is a local customer dissatisfaction, customer complaints point to improve to meet customer needs. In addition to traffic conditions, location of goods and customers can also take full advantage of, so the area for traffic congestion can be avoided easily by GPS without delay in delivery, and even the flexibility to mobilize quickly to respond to the special status of the goods needs.
automation significantly reduced after the personnel costs, with the minimum of people operating a full-scale cement plant. automated through after Zambrano e-mail asked the local manager in the dashboard of his unusual numbers see, for example, why the kiln temperature is too high, or the reasons for poor sales since 1991
CEMEX started using e-mail, then replaced Lotus Notes has an initial resistance caused by the use of many people, it brought more easily connect with each other and the information public, but also gradually lead to change the culture of CEMEX, the staff began to strive for improvement, because they know all the improvements will be seen . Meanwhile, Zambrano also by IT and its rich diversity of individuals to promote the concept of imagination to accept new ideas every manager.
use of IT is the biggest change that dare not question the boss to break the traditional culture , the class messed up the organizational CEMEX, but Zambrano finds the chaos is a good start.
When the IT technology has reached the status of the various anomalies can be resolved immediately and at any time hold the latest information, and to internal operations to achieve the most suitable for standardization, we began to develop out of its own poorly managed mergers and acquisitions business model of the cement company. For example, the first acquisition in 1992 of Spain's two water plants, then the expansion to Asia, Central and South America and Egypt, in 2000 more generous to 2.8 billion U.S. dollars acquisition of the second largest U.S. cement Southdown, which are proving their acquisition of a set of standard mode, and then into its unique process and strict control system, quickly making the new company profitability.
third stage:
development of e-supply chain management and customer management system, the cheapest supply of cement.
1990 developed late CEMEX's global digital systems, by satellite and the Internet connection of its operating units spread all over the world. through its online portal, it enables CEMEX suppliers, distributors and customers to better check order status in real time.
Zambrano very modest CEMEX's success will be attributed to chance to luck, that is the right time to start reforms, coupled with the timely introduction of IT technology, and the current market has a large number of outstanding information staff, and good technology integration together with the collection's own IT blind love to accidentally create a unique ability to CEMEX. Zambrano does not deny that extended to foreign acquisitions than CEMEX Holcim and Lafarge (the world's top two cement company) has more advantages because, although they have many foreign CEMEX plant before, But they will spend a lot of effort to overcome institutional inertia, and the brains will spread a unified national information systems branch. to overcome the inertia of these systems and unified information system, CEMEX in Mexico early in its already implemented for many years, Therefore, the process has been skillful in its system to foreign countries after the expansion, in order to achieve effective management.
cement demand the introduction of these technologies allows CEMEX to enter another realm, that is, the original 3-hour delivery significantly shorten the time to 20 minutes, it is obvious that, because of rapid delivery, on time but also greatly enhance the value of .98% of customers are also able to control the delivery within 20 minutes to reach the designated location, or to make a 5% discount, the other change orders in transit and will not charge extra fees, which are differentiated services. but not proud of CEMEX, the ideal goal is to further reduce the half time of 10 minutes to be served.
Zambrano in this area really can not calculate ROI, the 2001 first quarter net income to increase to 1.6 billion, compared with the same period last year grew 19%. Zambrano CEMEX also praised the growth driving force due to full integration, integration CEMEX makes faster than competitors and information more flexible.
CEMEX Vice President David Bovel, is responsible for supply chain management team, he said: to shorten delivery time to promote the concept of the Organization Rethinking CEMEX and innovation, it is not just a good application, it is a great design - the new business model, this design will ultimately achieve product differentiation through a service. These differences are not because the product or industry other factors, customer demand is constantly thinking and how to stand firm position in the most economic conditions to meet and respond to customer needs.
market information can be very acute sense though, also shows that the price is subject to market demand so, but often CEMEX because it provides excellent relative to the efficiency of the industry an additional service charge. CEMEX CEO, said: It is now used by the trucks did not improve before the less than 35%, or a truck when the two are used, the number of each truck days increased from 4 to 10 times; expected next year in fuel, maintenance and salary costs will be able to save 100 million U.S. dollars.
margin for most companies to increase the main way to reduce costs, but not the only approach, CEMEX spent the past ten years nearly two billion dollars in business model changes, connecting 7,000 PC, 80 workstations, 300 servers, is now beginning to enjoy the fruits of their integration; denied most of the business strategy to focus almost all of those Cheng Zhongcheng the decrease in the system, but in terms of the CE-MEX is dedicated to the development of a new IT business model.
CEMEX, relying on its own to develop the business model, management systems and software and hardware standardization of equipment , based in Mexico into the world, and fully operating in emerging and high growth market, building a global brand awareness, international investment and mergers and acquisitions, to the fastest CEMEX will do that step plan to develop web-based procurement, sales and customer service system in the end of 2001, more than half of the network function * for the Internet. CEMEX employees to activate the imagination and innovation, not afraid of people called Methodist Road in order to control the employees, each employee at home to install the computer and online access.
CEMEX goal is not to further expand the scale of the future than the Holcim and Lafarge, but that to maintain high profits; future competitors, even for new
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