Logistics Cost Reduction and Change Management for a Cement Manufacturer

Industry: Cement & Manufacturing | Client: Dalmia Cement

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Dalmia Cement is a major player in the Indian cement industry, operating across multiple regions with an extensive supply chain network consisting of 13 plants, 410 warehouses, and three regional offices. The company faced increasing logistics costs and inefficiencies in managing its distribution network, prompting the need for a structured cost reduction initiative.

Challenge

Dalmia Cement experienced rising logistics expenses due to fragmented supply chain operations. The absence of structured cost-saving mechanisms, coupled with high dependency on third-party logistics, resulted in operational inefficiencies. Additionally, a large logistics workforce across multiple locations required effective change management to implement strategic improvements.

Solution

• Launched a 14-month logistics cost reduction program, identifying and implementing nine logistics cost-saving initiatives.

• Optimized vehicle management through vehicle insourcing, reducing reliance on third-party transport providers.

• Developed a business case for electric vehicle (EV) adoption to explore cost-effective and sustainable transportation alternatives.

• Led a change management initiative for the logistics team, comprising 180 employees across three regional offices, 13 plants, and 410 warehouses to drive operational efficiency and strategic alignment.

  
  

Outcome

• Significant reduction in logistics costs through the successful implementation of cost-saving strategies.

• Improved supply chain efficiency, reducing transportation expenses and optimizing resource utilization.

• Increased workforce alignment with new logistics strategies, fostering a culture of cost optimization and process improvement.

• Established a foundation for future sustainable logistics solutions, including potential EV adoption.