COMPANYPROFILE
By Tielman Nieuwoudt, Principal Vietnam
The Supply Chain Lab, www.thesupplychainlab.com
Jacques Van Niekerk is the Supply Chain Director of Holcim (Vietnam) Ltd., a
leading producer of cement and ready-mix concrete. Tielman Nieuwoudt spoke with
him about the supply chain side of Holcim’s Vietnam operation.
TN: Can you give us an overview of your company in growing as the market develops. Compared with some
Vietnam? other markets we have a lot of scope for growth. In the
JvN: Holcim (Vietnam) Ltd. is a leading producer of ce- USA or Europe for example bulk sales represent 95% of
ment and ready-mix concrete. The company was reg- volumes in many sub markets. We expect to see a growth
Photo courtesy: Rensis Ho
istered in February 1994 as a joint-venture company in bulk sales and bulk delivery will form a key part of our
between Holcim Ltd. and Vietnam Cement Industry Cor- distribution strategy in the future. For our bag business,
poration (VICEM), a state owned enterprise of Vietnam. customers are collecting directly from our facilities and
Holcim Vietnam employs around 1,500 people at its five it is definitely a part of our supply chain that we want to
Glaucoma shrinks
main sites. Our current focus is in South Vietnam and in improve on. With better control and scheduling, we can
particular Ho Chi Minh City and the Mekong Delta. reduce the bottlenecks at our facilities to improve cycle
sufferers’ outlook on life
times and so improve customer service.
TN: With the current economic climate and with new
capacity coming online, experts have warned of an TN: How important are distributors to your business?
oversupply in the Vietnam market. How do you think JvN: Distributors form an important part of our supply
oversupply will affect you? chain strategy. At the same time we have a need to get
JvN: There is a concern about oversupply. However, glob- closer to our end consumer to better understand how we
ally there is an oversupply and the situation is not unique could add further value and our distributor network is one
Share light with them!
to Vietnam. Countries like the US used to be net importers area we would like to focus on to help deliver improve-
of cement but are now net exporters. In Vietnam there is ment. We have several distributor programs and the key
more capacity being built and this will put more pressure is to find distributors that know the market and add value
on prices. However, we are very positive about Vietnam’s to our business. This can sometimes be challenging. The
economic prospects and continued foreign direct invest- market in Vietnam is highly fragmented and competitive
ment. The future of infrastructure projects is bright and and exclusive distributors are rare. It is not uncommon in
this will have a positive impact on our business. Vietnam for a distributor to sell three different brands of
cement.
TN: Can you tell us more about
your distribution strategy? TN: Can you give us an overview of the technology
JvN: We currently have direct you are using in your supply chain?
control over our bulk delivery. JvN: Holcim uses SAP in all of the more than seventy
We operate a fleet of bulk ve- countries where we operate. We are currently not integrat-
hicles that we schedule and ed up to distributor level and it is definitely something we
control to ensure improved ef- will address in the not too distant future.
ficiency and improved value for
customers. Currently, bulk sales TN: Transportation overloading is a big problem in
volumes represent about 35% Vietnam. How are you addressing this as a company?
of our total sales with bagged JvN: Overloading is a huge problem in Vietnam and it is
cement being the balance. The something that Holcim takes very seriously. We also want
level of bulk sales is often used as an indicator of relative to move away from old technology tankers and we see a
With the support of
sophistication of a market. In Vietnam this ratio is steadily big potential for aluminum tankers with a bigger capacity. Your monthly contributions will help liberate blind people’s lives.
Donation hotline: (852)2595 0263
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