CEMEX adopts SAP and outsources to IBM

CEMEX has recently made some moves designed to lower costs with the help of information technology. For instance,  the company announced recently its successful global integration of  its new "enterprise platform" based on SAP. The deployment was achieved in what the company says is record time and cost across all its operations in over 50 countries. With the implementation of the new SAP platform, CEMEX concludes the utilization of its previous platform, JD Edwards.

Due to "an increasingly complex operating environment in the building materials industry", CEMEX decided to adopt a new platform to integrate more efficiently all its internal core processes and enhance its ability to operate consistently across all of its operation.

“This new platform provides real-time data from all critical processes and functions, helping us to integrate our core cement, ready-mix and aggregates businesses into a single solution that serves our customers with greater speed, precision, and quality” said Lorenzo H. Zambrano, CEO of CEMEX.

CEMEX can now tailor customer solutions to meet specific business needs, using cutting-edge technology such as mobile interfaces, fluid collaboration schemes and business-oriented social networking models.

According to Fernando González, Executive Vice-president of Finance and Administration, migration project was completed in just 18 months. 

Focus on core business prosesses
In addition, CEMEX announced a 10-year strategic agreement in which IBM will deliver business process and information technology services. Additionally, IBM will provide to CEMEX business consultant services to detect and drive sustainable improvements in profitability, using the entire breadth of IBM's capabilities, including R&D expertise.

This agreement is expected to generate CEMEX savings of close to $1 billion during the life of the contract. Additionally, CEMEX says it will enhance its business agility and scalability; maximize internal efficiencies; and allow the company to better serve its customers.

The 10-year services contract awarded to IBM is worth just over $1 billion, and will include: finance and accounting, and human resource back-office services, as well as IT infrastructure, application development and maintenance services.

“This agreement with IBM will enable CEMEX to focus on its core businesses of cement, ready-mix concrete, and aggregates; improve its financial position; and respond more quickly to changing market needs,” said Lorenzo H. Zambrano, Chairman & CEO of CEMEX.

Together, IBM and CEMEX will implement state-of-the-art business processes, practices, and information systems developed by IBM. CEMEX will also leverage IBM’s worldwide expertise to accelerate and replicate innovative practices in CEMEX business units to achieve better customer service, increase process quality and sustain cost improvements.