Cementing huge ROI

Jaypee Group gets better margins through improved logistics

The executive team at Jaypee Group investigated ways to improve margins and profitability related to cement production and sales. The cement line of business contributes a significant portion of revenue to the group's overall performance and, with costs such as fuel on the rise, the company turned to SAS® to help optimize its transportation logistics and improve its bottom line.

Jaypee Group is one of India's leading infrastructure industry organizations, with a diverse portfolio of businesses, including engineering and construction, cement, private hydropower, hospitality, real-estate development and highways. It has revenues of US$1 billion. Jaiprakash Associates Limited – the flagship company of Jaypee Group – is the third largest cement producer in the country, operating modern process-control plants, with an aggregate capacity of nearly 20 million tons per year.

Now, faster than ever, we can determine the best combinations of mode and route to ship our products. The net ROI is huge – it's automated decision making in real time.

R.B. Singh
Chief Financial Officer

A route to better logistics

The company chose SAS/OR® to manage a complex shipping matrix that involves shipping product to major markets, from plants across the country, using various modes of transportation. SAS/OR provides a powerful array of optimization, project scheduling and simulation techniques to identify alternative actions and scenarios to better allocate routes and resources and optimize transportation logistics.

Concrete results

"SAS/OR allows us to incorporate a multitude of variables into our analysis," says R.B. Singh, CFO, Jaypee Cement. "Now, faster than ever, we can determine the best combinations of mode and route to ship our products. The net ROI is huge – it's automated decision making in real time."

SAS also provides the executive team with a dashboard to monitor key indicators related to margins and profitability at an enterprise level.

"SAS gives us tremendous visibility into our transportation costs and enables us to analyze and segregate profitable routes from nonprofitable ones," Singh says. "A key result was an optimized plan to ferry our products from our plants and warehouses to the major consumer markets, thereby contributing significant cost savings to the company."

Challenge

To counter rising transportation and fuel costs, Jaypee Group needed to optimize its logistics to improve margins and profitability of its cement business.

Solution

SAS/OR® Software

Benefits

  • Reduced transport costs.
  • Increased profitability.
  • Gained quicker analysis, segmentation of profitable vs. non-profitable routes.
  • Enhanced speed, reliability of decision support.

本文中所展示的成果取决于文中所述的特定场景、业务模式、数据输入和计算环境。每位SAS客户的体验都因其业务和技术特性而不同,请勿将本文观点视为通用观点。实际的成本节约、成果和效果最终取决于每位客户的实际配置和条件。SAS不保证每位客户都能取得本文类似的成果。SAS仅对SAS的产品和服务提供保证,请参阅SAS的产品服务质保条款,本文中提及的内容不能视为质保条款。客户可以按照合约商定的条款分享SAS软件实施项目的成功案例,相应的品牌和产品名称归属相应的公司所有。

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