In mid-2018, Holcim (New Zealand) Ltd distributed its one millionth tonne of cement since introducing a new cement sourcing and distribution strategy two years ago.

After almost 60 years of operation, Holcim New Zealand’s Westport cement manufacturing operation underwent planned closure in June 2016, necessitating an extensive process to secure a replacement overseas supplier, explains Holcim New Zealand’s country manager Glenda Harvey.

“Quality and surety of supply were high on Holcim New Zealand’s priority list,” says Mrs Harvey.

“A reliable shipping and supply chain network are critical to the New Zealand business and the team in New Zealand work closely with parent company, LafargeHolcim, who have for many years operated similar models around the world.

“Our suppliers provide good service and support to New Zealand including visiting customers to seek their feedback directly. The supply arrangements we now have in place enables Holcim New Zealand and its customers to have certainty in terms of product quality and reliability for an extended period.”

As well as operating three quarries in the country, Holcim New Zealand’s current sourcing and distribution operation commences with bulk cement being shipped from overseas and delivered to state-of-the-art terminals in Auckland and Timaru.

“Cement arrives into Auckland where the ship discharges about half its cargo and then heads down to Timaru to complete the unloading process. Cement is then either trucked to our customers or delivered via our domestic ship, the Buffalo.

“The Buffalo is based in Timaru and transports cement to Holcim New Zealand’s South Island and lower North Island cement depots. It has been servicing these ports since April 2018 and is the replacement for our two older ships which have since been sold.”

Mrs Harvey says her team works closely with both the overseas suppliers of bulk and niche products and international shipping companies to ensure understanding and compliance with Holcim New Zealand’s requirements.

“The focus on product quality is maintained all the way along the supply chain. We have developed strict cement loading processes, as well as limiting the pool of ships used, implemented detailed standard operating procedures and developed training  documentation for the ships’ crews on how to prepare the ships for transporting cement and independent inspections.”

The strict testing regime includes product sampling at major points along the supply chain.

“The analysis is undertaken by our IANZ-accredited laboratory and the Holcim New Zealand technical team in Auckland to ensure our products comply with our standards.”

Another key to the strategy of Holcim New Zealand, which supplies both bulk cement and other specialty containerised cementitious products, has been its investment in the Auckland and Timaru terminals. This includes equipping the terminals with shore-based ship unloading facilities, 30,000 tonne cement storage domes and load out facilities for bulk cement trucks as well as ancillary building facilities.

“The team has made great progress. Our first shipload of cement was unloaded in Timaru in early 2016 and took more than a week to discharge - now on average, we unload within two-to-three days at both Timaru and Auckland ports.”

Describing Holcim New Zealand’s newly-updated operating model as “business as usual”, Mrs Harvey nonetheless acknowledges the evolution “naturally came with some challenges”.

“Building the infrastructure and operational know-how to efficiently operate new facilities, managing an extended supply chain and transitioning customers to a new product has been a massive change.”

“However, we have learned a lot through this process - most notably that we need to know as much about concrete and our supply chain as we do about our product.”

“We have a great team in New Zealand - they have been a big part of ensuring the business transformation was a success.”

At the time of publication, Holcim New Zealand was just a few months away from completing the last of the depot infrastructure required to complete its supply chain, in the form of silos at Wellington and New Plymouth. With the distribution network optimised, Mrs Harvey says Holcim New Zealand will be close to meeting its goal of “transforming the New Zealand business”.

“Our goal never changes - our priority continues to be on providing quality product and service to all of our customers. Recognising a million tonnes of cement moving through our new supply chain is a way of thanking our people, customers and suppliers who have helped make our vision a reality.”

A supplier of products and services to New Zealand’s construction and infrastructure markets since 1888 (when the Milburn Lime & Cement Company was formed), Holcim New Zealand now operates as a division of Holcim Australia New Zealand, which employs a total of 3,200 staff across both countries.

Also a founding member of what is today Concrete NZ, Holcim New Zealand is part of the LafargeHolcim group, which is a leading global construction materials and solutions company with assets in over 80 countries and employing 80,000 staff around the world.

Taken from Concrete magazine.