Cemex 1997 Annual Report Download - page 18

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12
In 1997, we also introduced a 25-kilogram
bag of our white cement, which ultimately
accounted for over 15% of CEMEX Mexico’s
white cement sales volume. Because white
cement is primarily used for small repairs and
projects, this new bag entails less burden and
waste to our customers.
In the ready-mix division, we implemented
CEMEX’ Dynamic Synchronization of
Operations (SDO) system in Mexico City. This
system has already improved CEMEX’ trucks’
efficiency by 35% in Mexico City and
Guadalajara, where it was originally launched
in 1996. With the knowledge gained to date, we
expect to expand the benefits of the SDO system
to the remainder of our ready-mix operations.
Our Continuous Improvement Program con-
tributed additional cost savings in 1997. We
performed a thorough due diligence to deter-
mine additional areas of opportunity within
CEMEX Mexico. The resulting initiatives includ-
ed: improved efficiencies in the logistical area,
redesign of marketing/sales practices and infor-
mation systems, increased focus on service to
distributors and end-users, centralization of
purchasing through regional offices, as well as
efficiency improvements across our operations.
Upon completion, the program’s expected
annual savings should amount to US$85 mil-
lion.
Recognizing that our people are our most
important strategic resource, we signed a con-
tract with the Secretary of Education to ensure
that our blue-collar workers are educated on at
least a high-school level. Through a satellite
education system, we are able to give classes
and provide our workers with a high-school
equivalent that is certified by the Mexican gov-
ernment. No other company offers a similar
government-certified program.
New customer solutions
New products laboratory in Mexico
City.
We opened a new state-of-the-art lab-
oratory in Mexico City. This facility is
designed to introduce at least one
new product each year and to act as a
technical support center for our cus-
tomers.
Mexico operating cash flow
millions of dollars
Growing Mexico Cash Flow
CEMEX MexicoÕs rising cash flow was
fueled by a robust economy.