They started from the inside out. In 1989, the companydeveloped Cemexnet, a satellite communications system thatlinked all the cement plants. The company also opened acentral office to coordinate its productionfacilities. Cemexnet made it easier for the plants to remainabreast of supply and demand. It also streamlined the flow offinancial information and other back-office functions, whichwere gradually automated.

Now that the plants could communicate, it was time to dealwith the delivery systems. During the early 1990s, Cemexinstalled a logistics system called Dynamic Synchronizationof Operations, which uses GPS technology to link deliverytrucks to a central control center. Cemex merged theindividual truck fleets and equipped each truck with acomputer and a GPS transmitter. Because dispatchers atoperations centers in Monterrey, Mexico City and Guadalajaracould see the location, speed and direction of each truck,they could make sure deliveries were picked up by the trucksclosest to each of the production plants. They also haddetailed information on traffic conditions, inventory and thecustomers´ location, so trucks could be rerouted if trafficgot too hairy and deliveries could be redirected if acustomer´s order changed at the last second.

Cemex´s global digital program, which began in the late1990s, is the third piece of the puzzle. It connects eachelement of Cemex´s worldwide operations via satellite and theInternet. An online portal lets Cemex´s suppliers,distributors and customers check their order status.

Cement on Demand

These technology initiatives have helped Cemex slash itsdelivery window from three hours to 20 minutes, dramaticallyincreasing the value to its customers. Cemex makes deliverieswithin that window 98 percent of the time. Eventually, itaims to cut the 20-minute window in half. Customers canchange their orders up to the moment of delivery at nocharge, and they get a 5 percent discount if the order islate.