Automation and digitalization are also an important guarantee for efficient processes in industrial companies. Philcement is an impressive example of how the successful transition from previously manual processes can be achieved. Following a modernization project led by Axians IAS, the company was able to significantly improve performance at its cement plant in the Philippines.
Philcement - Automation and Digitalization with VAS Yard Management
Project environment
Philcement is a subsidiary of the Philippine conglomerate PHINMA and has long been active as a cement supplier in the Asian country. In order to expand its leading industry position in the region, the Company opened a modern cement plant and associated terminal facilities in the port city of Mariveles in the province of Bataan in 2020.
The company set out to find a suitable service provider to design smooth processes at the new plant. As employees of Philcement were aware of Axians IAS from previous, successfully completed projects, the logistics service provider was quickly shortlisted. Once Philcement and Axians had agreed on comprehensive cooperation, work on the project began in March 2022.
The challenges
Before the project began, Philcement was faced with a number of challenges that repeatedly hindered the logistics processes at the plant. The main reason for this was the high proportion of manually performed activities, which at times amounted to 40%. This and the non-centrally controlled processes caused considerable stress within the company.
In order to design more efficient processes in the plant, Philcement also had to solve a number of other challenges. One of these was the inconsistent handling of data. The use of different spreadsheets based on MS Excel in the areas of dispatch, plant withdrawal and CIF planning, as well as a lack of centralized recording, resulted in a lack of overview and made coordination difficult. The cumbersome processes meant that employees spent more time on manual data entry than on the more important data analysis.
Project requirements & goals
The starting point for the project was an innovative solutions approach from Axians IAS. The aim was to significantly improve the user experience for Philcement and its customers and to automate processes. To ensure the most seamless integration possible, it had to be ensured that the appropriate interfaces to the ERP system were ready for use in good time. To increase the precision of the Oracle reports, the goal was also to minimize manual processes in the ERP system.
In order to fundamentally increase process efficiency at the plant, the operational processes had to be optimized and digitalized. The focus here was on implementing a logistics system that was fully connected to the Oracle Cloud. This includes data exchange across the entire chain, from order processing, registration, inbound weighing, loading, outbound weighing through to delivery, including the automated sending of information to all persons, departments and customers involved. The latter in particular should also benefit from a significantly better service experience at Philcement.
Implementation of the project
Together with Axians IAS, Philcement now relies on an Oracle cloud-based solution and VAS Yard Management hosted by a large cloud operator. The integration of the ERP system based on Oracle Fusion into the VAS Yard Management implemented by Axians proved to be a particular challenge. The problem was solved by the Axians team, whose expertise provided Philcement and Oracle with valuable assistance at all times.
The new VAS Yard Management system now ensures significantly more efficient processes. This includes seamless transfers of warehouse transactions (WTR) to the Oracle Cloud and improved handling by reducing manual steps and entries.
The successful implementation was aided by the Axians IAS team’s wide-ranging expertise, which sets standards in the cement industry. In addition to providing advice, the team also made a valuable contribution to the efficient implementation of the solution by providing tailored customization and go-live support as well as extensive training for Philcement staff.
``We returned to the cement business as a start-up. Having such a good partner as Axians IAS and VAS prepares us ideally for the future.``
Assistant Vice President - Logistics, Philcement
Project result
The solution initiated by Axians IAS has led to a number of improvements at Philcement, making processes faster, smoother and more precise. Automation has led to a significant reduction in manual processes. This has accelerated data processing and improved overall plant performance, resulting in more flexible processes and faster decision-making.
The introduction of VAS Yard Management has also led to greater transparency. On the one hand, digitization allows more information to be displayed on the delivery bills. In addition, data reconciliation is faster, as all information is stored centrally in the system. Furthermore, the accounting department benefits from faster invoicing times, while controlling is made easier thanks to the comprehensive documentation of all processes. All of this clearly shows how much the user experience has improved on the company side. This is not the only reason why 95% of all processes at Philcement are now carried out with the support of the VAS solution.
However, the introduction of VAS Yard Management has also led to numerous improvements on the customer side. For example, waiting times for customers during manual processes have been significantly reduced. One example of this is the unmanned weighbridge. This enables significantly faster processes, reducing the waiting time for drivers from five minutes to just two minutes.
The core project has now been completed, but the cooperation is not yet over for the two partners. Further measures are planned at Philcement to make processes at the plant even more efficient. These include:
- Automatic sending of e-mail and SMS notifications to provide customers with precise real-time information about the delivery status
- Self-service station at the weighbridge
- VAS implementation in other plants
- Connection of further warehouses to the central VAS operator web application
- EPOD (Electronic Proof of Delivery)
- DR (Delivery Receipt) for the subsequent recording of ship loading
- Implementation of WTR (Warehouse Transfer Receipt) and ship transfer
The successful partnership is already strengthening Philcement’s industry position in the region. The measures still to be implemented by Axians IAS will also help pave the way for a successful future for the cement company.
About Philcement Corporation
Consistent with parent company PHINMA Corp.’s intent to make lives better, Philcement Corporation (“Philcement”) through its legacy brand Union Cement provides reliable and consistent supply of high-quality cement solutions to support our country’s construction and infrastructure requirements.
Philcement is committed to uphold the highest standards of sustainable cement operations, certified under Integrated Management System ISO 9001:2015 (Quality Management System), ISO 14001:2015 (Environmental Management System) and ISO 45001:2018 (Occupational Health and Safety Management System).
Philcement is part of the PHINMA Construction Materials Group (PHINMA CMG), which includes affiliates Union Galavasteel Corporation, Union Insulated Panel Corporation, and PHINMA Solar Energy Corporation. The synergy of these firms allows PHINMA CMG to provide high-quality cement, steel, insulated panels, and solar solutions at outstanding value to Filipino customers nationwide.
Union Cement ang Sementong Astig! Basta semento, i-Union Cement mo!
