Before it installed supplychain optimisation software, its production processes were optimisedmanually. This meant that adjustments to production models could bemade only once a month--but now they can be done every day. "Now thatwe have modelled the supply chain, whenever there is a change indemand conditions, only the parameters need to be changed. In thepast, we had to co-ordinate every single activity in the supply chain,from informing the different parties to getting out built-up physicalinventory," he says.

ROI 2002

The company expects ROIROI to be achieved in 2002. By the end of theyear, it expects to reduce working capital by US$13.6 million. In thesix months since the installation of the software, Cementhai hasalready saved US$1 million in inventory holding costs, and by the endof the year it expects savings of more than US$2 million." Alles zu ROI auf CIO.de

It is also reaping intangible benefits, among them the ability to bemore responsive to its suppliers and customers. "We collaborate withour supply chain partners using the new Web ordering system from AspenTechnology. This provides us with a history of customer orders that isused for demand forecasting. In the event of a plant shutdown, or anyother unforeseen events, we are able to estimate the impact toindividual customers in advance, and come up with a joint plan tohandle the situation better."

Initial attempts to get its customers to share information with itselfhave been difficult. Thamasak believes a "win-win" situation must becreated. "Customers must get some benefits for sharing informationwith us. For instance, in our industry, the most critical informationthat needs to be shared is delivery date. Since prices change daily,most customers prefer to wait and tell us the date just one day inadvance. In the past, there was no incentive for them to share, butnow we have configured a "Capability to Promise" engine, which canlock the production order and guarantee them delivery by the datedesired."