ACC plans to cut logistics costs

ACC plans to cut logistics costs

At present, ACC, part of Switzerland-based Holcim Group spends 33 per cent of sales realisation on transportation costs. The company has now planned to cut logistics costs by Rs 150 crore a year. Tushar Rameshchandra Dave, Vice-President (Central Logistics) informed that ACC will apply latest technology for better asset utilisation and cut down logistics costs. With recent reduction in fuel subsidies, that lead to a sharp spike in diesel and petrol prices, logistics has become a key focus for several cement companies. "With raw material prices remaining high, the only way we can protect our margins and market share is by improving our efficiency. Logistics stands out as it accounts for the lion's share of the cost," added Dave.

ACC has a large fleet having 10,000 to 12,000 trucks manned by 18,000 to 20,000 logistic operators in 17 locations. ACC recently formed a team of 300 staffers, led by 25 logistics leaders, to manage 20,000 logistic operators. The company annually moves 6 million tonnes (mt) of goods, including 12 mt of raw material at its 17 plants in 15 remote locations.ACC implemented a logistic excellence programme at three plants Tikaria in Uttar Pradesh, Damodhar in West Bengal and Thondebhavi in Karnataka.

It is installing RFID software along with GPS on all its 12,000 vehicles.

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