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Case Study Of Logistics At Ambuja Cement

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Over the years ACC has reported an average capacity consumption rate of 86%, and Ambuja's average utilisation pace stands high at 93%. During certain years, Ambuja Cements somehow managed to produce even more than their total installed capacity. So the company has not only added their capacity at a rapid, swift, pace, but has also attained high utilisation rates throughout most of its operations. This shows the top level of efficiency in Ambuja Cement's operations.
Logistics at Ambuja Cement
Inbound logistics today is highly inefficient. Most retailers use multiple systems to manage the process and so suffer from fragmented visibility. Prioritisation and scheduling of orders are done on an ad hoc basis, with little consideration of current demand and inventory, while scarce resources, such as dock door and yard capacity, are often poorly utilised.
Integrated Logistics System …show more content…

The costs of key inputs coal, power and transport by rail or road are spiraling year-on-year. The coal is of poor quality, with high ash and low calorific value content. There is need to introduce competition for improving quality, regularity in supply and reduced prices. The power from public utilities is of poor quality due to frequent power cuts and fluctuating voltage.

Transport by rail or road is a cost-intensive component and amounts to almost 15-20 per cent of the delivered cost to the consumers. The railway tariff is high and need to be rationalised for an essential product like cement. Road transport on the other hand, provides limited alternative because of inadequacy of road network and rising cost of road transport due to continuously rising fuel cost. Inland water transport is eco-friendly and cheap mode especially for bulk commodities like cement. Coastal shipping and inland waterways will help in bringing down the transportation cost.

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