SAP Innovation Awards 2024 - 4305 - Votorantim Cimentos
With a 100+ year history, Votorantim Cimentos (VC) had an increasingly complex supply chain model. Integrated business planning challenges included: cyclical and sensitive demand to avoid product shortages (300,000+ customer sources), and Clinker Curve precision on when the maximum and minimum levels of inventory needed to be produced in a furnace (kiln), which is very costly to turn on and off. This VC initiative implemented SAP Integrated Business Planning (IBP) for Supply Chain to achieve optimal results in the areas of Planning (visible, predictive, and prescriptive decision support) and Innovation (leveraging SAP Artificial Intelligence (AI) technology for demand forecasting.) Download the DocumentPUBLIC
Entry Pitch Deck
Votorantim Cimentos
Paulo Araujo De Souza | Felipe Liandro Alencar
Mill Products / Construction Materials
Optimizing World-Class Cement Production
Around Demand Planning and the Clinker Curve
Entry Pitch Deck
Votorantim Cimentos
Paulo Araujo De Souza | Felipe Liandro Alencar
Mill Products / Construction Materials
Optimizing World-Class Cement Production
Around Demand Planning and the Clinker Curve
COMPANY NAME:
HEADQUARTERS:
INDUSTRY:
WEBSITE:
NUMBER OF EMPLOYEES:
Company Information
© 2023 SAP SE or an SAP affiliate company. All rights reserved. See Legal Notice on www.sap.com/legal-notice for use terms, disclaimers, disclosures, or restrictions related to this material 2
Votorantim Cimentos
São Paulo, Brazil
Mill Products / Construction Materials
www.votorantimcimentos.com
13,000+
Votorantim Cimentos (VC) is part of a bigger group called Votorantim Group. Votorantim is
a family-owned company that has invested with a long-term vision, seeking to deliver
superior financial returns with positive social and environmental impacts since 1918.
VC is one of the largest global companies in the industry. Its building materials portfolio
includes not only cement but also concrete, mortars and aggregates.
The Company also has businesses in the areas of agricultural lime, waste management
and co-processing.
VC prioritizes that sustainability is present in everything they do, and recently launched
our ‘Evolving towards a sustainable world’ campaign globally.
In addition to Brazil, VC’s administrative and operations locations are strategically located
in proximity to the most important growing consumer markets in ten countries including,
Argentina, Bolivia, Canada, Luxembourg, Morocco, Tunisia, Turkey, Spain, the United
States, and Uruguay.
HEADQUARTERS:
INDUSTRY:
WEBSITE:
NUMBER OF EMPLOYEES:
Company Information
© 2023 SAP SE or an SAP affiliate company. All rights reserved. See Legal Notice on www.sap.com/legal-notice for use terms, disclaimers, disclosures, or restrictions related to this material 2
Votorantim Cimentos
São Paulo, Brazil
Mill Products / Construction Materials
www.votorantimcimentos.com
13,000+
Votorantim Cimentos (VC) is part of a bigger group called Votorantim Group. Votorantim is
a family-owned company that has invested with a long-term vision, seeking to deliver
superior financial returns with positive social and environmental impacts since 1918.
VC is one of the largest global companies in the industry. Its building materials portfolio
includes not only cement but also concrete, mortars and aggregates.
The Company also has businesses in the areas of agricultural lime, waste management
and co-processing.
VC prioritizes that sustainability is present in everything they do, and recently launched
our ‘Evolving towards a sustainable world’ campaign globally.
In addition to Brazil, VC’s administrative and operations locations are strategically located
in proximity to the most important growing consumer markets in ten countries including,
Argentina, Bolivia, Canada, Luxembourg, Morocco, Tunisia, Turkey, Spain, the United
States, and Uruguay.
CHALLENGE: SOLUTION: OUTCOME:
Balancing Demand Forecasting Optimizing World-Class Cement
Production Around Demand Planning and the Clinker Curve
3
Transparency to see forecasts 4% and
improving better, which represents
more than 50K tons of cement production.
Speed-to-delivery of a first version
demand plan went from
~6 hours to 10 – 40 minutes for 30+ planners.
5000 location sources, which address the
availability of raw materials used for
cement production and incorporated in
integrated business planning
4%
Votorantim Cimentos
6X Faster 5000+
With 100+ years of history, Votorantim Cimentos (VC)
had an increasingly complex supply chain model.
Integrated business planning challenges addressed:
• Cyclical and sensitive demand to avoid product
shortages (300,000+ customer sources).
• Clinker curve precision on when the maximum and
minimum levels of inventory need to be produced in a
furnace (kiln), which is very costly to turn on and off.
• Data realignment to ensure optimal decisions and
reduce historic data points (e.g., obsolete supplies).
• Non-Linear production lines and many product
SKUs. Limited cement shelf life and storage
capacity.(600+ raw materials; 250+ finished products).
This VC initiative, project name IRIS, implemented SAP
Integrated Business Planning (IBP) for Supply
Chain to achieve optimal:
• Planning - Visible, predictive, and prescriptive decision
support.
• Innovation - Leverage SAP Artificial Intelligence (AI)
technology for demand forecasting.
• Sustainability - Optimizing our resource utilization,
positively impacting the environment.
• Execution - Protect existing investments to cost-
effectively eliminate and reduce disruptions.
• Change Management - Ensure that the employees
and stakeholder contributed and learned the how-to’s.
VC emphasized the visibility and simplification of the end-
to-end integrated business planning process:
• Demand Planning utilizing next-gen AI tools resulting
in a highly accurate predictive model.
• Business modeling to optimize more detailed plans
based on logic and the desired outcomes, with far less
forecasting errors.
• Clinker Curve operational data to reduce costs
(e.g., furnace on time) based on customer demand.
• SAP IBP acts as the single source of information
for all VC regions and stakeholders.
• Scenario-based planning oriented by supply chain and
Environmental, Safety, and Governance (ESG) KPIs.
© 2023 SAP SE or an SAP affiliate company. All rights reserved. See Legal Notice on www.sap.com/legal-notice for use terms, disclaimers, disclosures, or restrictions related to this material
Balancing Demand Forecasting Optimizing World-Class Cement
Production Around Demand Planning and the Clinker Curve
3
Transparency to see forecasts 4% and
improving better, which represents
more than 50K tons of cement production.
Speed-to-delivery of a first version
demand plan went from
~6 hours to 10 – 40 minutes for 30+ planners.
5000 location sources, which address the
availability of raw materials used for
cement production and incorporated in
integrated business planning
4%
Votorantim Cimentos
6X Faster 5000+
With 100+ years of history, Votorantim Cimentos (VC)
had an increasingly complex supply chain model.
Integrated business planning challenges addressed:
• Cyclical and sensitive demand to avoid product
shortages (300,000+ customer sources).
• Clinker curve precision on when the maximum and
minimum levels of inventory need to be produced in a
furnace (kiln), which is very costly to turn on and off.
• Data realignment to ensure optimal decisions and
reduce historic data points (e.g., obsolete supplies).
• Non-Linear production lines and many product
SKUs. Limited cement shelf life and storage
capacity.(600+ raw materials; 250+ finished products).
This VC initiative, project name IRIS, implemented SAP
Integrated Business Planning (IBP) for Supply
Chain to achieve optimal:
• Planning - Visible, predictive, and prescriptive decision
support.
• Innovation - Leverage SAP Artificial Intelligence (AI)
technology for demand forecasting.
• Sustainability - Optimizing our resource utilization,
positively impacting the environment.
• Execution - Protect existing investments to cost-
effectively eliminate and reduce disruptions.
• Change Management - Ensure that the employees
and stakeholder contributed and learned the how-to’s.
VC emphasized the visibility and simplification of the end-
to-end integrated business planning process:
• Demand Planning utilizing next-gen AI tools resulting
in a highly accurate predictive model.
• Business modeling to optimize more detailed plans
based on logic and the desired outcomes, with far less
forecasting errors.
• Clinker Curve operational data to reduce costs
(e.g., furnace on time) based on customer demand.
• SAP IBP acts as the single source of information
for all VC regions and stakeholders.
• Scenario-based planning oriented by supply chain and
Environmental, Safety, and Governance (ESG) KPIs.
© 2023 SAP SE or an SAP affiliate company. All rights reserved. See Legal Notice on www.sap.com/legal-notice for use terms, disclaimers, disclosures, or restrictions related to this material
4
Much more efficiency and the entire
company with much more intelligence to
serve the market.
Is there anything better than this?
Hugo Armelin
Director of Sales at Votorantim Cimentos
© 2023 SAP SE or an SAP affiliate company. All rights reserved. See Legal Notice on www.sap.com/legal-notice for use terms, disclaimers, disclosures, or restrictions related to this material.
Much more efficiency and the entire
company with much more intelligence to
serve the market.
Is there anything better than this?
Hugo Armelin
Director of Sales at Votorantim Cimentos
© 2023 SAP SE or an SAP affiliate company. All rights reserved. See Legal Notice on www.sap.com/legal-notice for use terms, disclaimers, disclosures, or restrictions related to this material.
COMPANY NAME:
Participating Partner Information
5
EY
The supply chain digital transformation journey
of Votorantim Cimentos starts with the SAP IBP.
.
This implementation strategy adopted a phased
go-live approach with 4 total addressing
Demand and Operational Efficiencies for S&OP
and S&OE.
.
This approach was essential considering the
learning curve for the stakeholders and the
maturity of their operations.
.
The team focused on delivering business value
based on their use case requirements.
-- Ricardo Santoro
Executive Director
Supply Chain Operations, EY
Business
Challenge
• Votorantim Cimentos (VC) had a process for Sales and Operations Planning
(S&OP) and Sales and Operations Execution (S&OE) based on manual
collaboration, e-mail exchanges, and excel spreadsheets. It resulted in a lack of
responsiveness, agility and transparency on decision making due to a time
consuming effort to consolidate data and non-standard processes.
• VC aimed to restructure the processes and solutions of S&OP and S&OE using
SAP Integrated Business Planning (IBP) in order to reduce demand forecast errors,
reduce inventory overage, improve service level, improve collaboration between
business areas, and enable planning scenarios within the process discussion.
Value
Delivered
• SAP IBP for Demand was implemented to support collaboration and demand
planning processes in short and long-term horizons, enabling a consistent flow
of information between the process as SAP IBP acts as the single source of
information for all VC regions.
• End-to-end supply chain visibility and customer delivery maximization based on
production and distribution plans generated using global optimization rather than
previous local simulation.
• Tracking and management of forecast errors with forecast value added (FVA)
metrics of each step, including baseline generated by advanced statistical models.
• Scenario-based planning oriented by supply chain and ESG KPI.
• Change management to align users’ expectation, predict, and mitigate impacts to
processes, organization, people, technology, KPIs, vision, and strategy.
© 2023 SAP SE or an SAP affiliate company. All rights reserved. See Legal Notice on www.sap.com/legal-notice for use terms, disclaimers, disclosures, or restrictions related to this material.
Participating Partner Information
5
EY
The supply chain digital transformation journey
of Votorantim Cimentos starts with the SAP IBP.
.
This implementation strategy adopted a phased
go-live approach with 4 total addressing
Demand and Operational Efficiencies for S&OP
and S&OE.
.
This approach was essential considering the
learning curve for the stakeholders and the
maturity of their operations.
.
The team focused on delivering business value
based on their use case requirements.
-- Ricardo Santoro
Executive Director
Supply Chain Operations, EY
Business
Challenge
• Votorantim Cimentos (VC) had a process for Sales and Operations Planning
(S&OP) and Sales and Operations Execution (S&OE) based on manual
collaboration, e-mail exchanges, and excel spreadsheets. It resulted in a lack of
responsiveness, agility and transparency on decision making due to a time
consuming effort to consolidate data and non-standard processes.
• VC aimed to restructure the processes and solutions of S&OP and S&OE using
SAP Integrated Business Planning (IBP) in order to reduce demand forecast errors,
reduce inventory overage, improve service level, improve collaboration between
business areas, and enable planning scenarios within the process discussion.
Value
Delivered
• SAP IBP for Demand was implemented to support collaboration and demand
planning processes in short and long-term horizons, enabling a consistent flow
of information between the process as SAP IBP acts as the single source of
information for all VC regions.
• End-to-end supply chain visibility and customer delivery maximization based on
production and distribution plans generated using global optimization rather than
previous local simulation.
• Tracking and management of forecast errors with forecast value added (FVA)
metrics of each step, including baseline generated by advanced statistical models.
• Scenario-based planning oriented by supply chain and ESG KPI.
• Change management to align users’ expectation, predict, and mitigate impacts to
processes, organization, people, technology, KPIs, vision, and strategy.
© 2023 SAP SE or an SAP affiliate company. All rights reserved. See Legal Notice on www.sap.com/legal-notice for use terms, disclaimers, disclosures, or restrictions related to this material.