Crushing Competition: 5 Ways Companies are Leading Through Digital Change

The mining, construction, and aggregate industries are among the least digitized industries, but it won’t be that way for long. These industries are in a full sprint towards digital transformation in order to harness incredible efficiencies and remain competitive, but the benefits can extend far beyond efficiency. Leadership teams are hyper-focused on leveraging technology to prevent problems before they start, to mitigate risk, and improve relationships both externally and internally.

From reducing paper and eliminating error-prone manual data entry to digitizing the measurement of stockpiles of inventory, bulk material companies are uncovering areas of opportunity within the core functions of their businesses. In this article, we are going to discuss 5 ways companies are embracing digital change and are crushing their competition.

1. Leading in Innovation and Forward Thinking Through Digitization

Leaders who embrace technology and are willing to invest in making their teams more efficient often build trust and inspire innovation. Employees who identify areas of opportunity and are heard by leadership will feel empowered to be solutions-oriented.  The benefits of embracing forward thinking and innovation can be felt by the company in more ways than one.

From a culture perspective, employees will help leaders identify and solve problems knowing that their thoughts, opinions, and proposed solutions are valued and executed upon. What better way to uncover potentially troublesome areas of a company than from the employees that see the struggles every day?

From a financial perspective, the company will gain valuable insights about the business from the ground level to the executive level. These insights will allow the company to solve problems before they become catastrophic and irreversible, make better and more strategic business decisions, and reallocate resources to revenue-generating tasks, improving efficiency, profitability, and competitiveness.

2. Eliminating Workplace Risk with Digital Toolsets

Digitizing manual tasks, like the measurement of stockpiled materials, can reduce exposure and risk of workplace injury. Climbing over a stockpile for an inconsistent measurement isn’t worth the financial and safety risk it poses. Investing in tools that allow measurements to be taken from afar reduces the overall exposure and risk to the company.

If an employee is injured on a bulk material site, the impact on the company can be debilitating. In a market where finding qualified workers is challenging, a company who experiences a workplace injury will be forced to operate without a valuable employee for a period of time. Not only is a company required to operate leaner, but they are also exposed to a potential lawsuit that could bring the company to its knees. As a result of the accident, the company could be exposed to inspections that impact production and thus, profitability.

Leaders of companies investing in technology and tools to reduce the risk of a workplace injury will ultimately come out ahead against competition due to less production downtime, inspections, and financially fatal lawsuits.

3. Improve Efficiency With Digital Transformation

Bulk material companies are embracing technology and digitally transforming to improve manual and error-prone processes. As a result, these companies are able to crush their competition with improved and newfound efficiencies.

  • Eliminating paper: When businesses rely on paper, efficiency is compromised and productivity is diminished. It takes time and money to process, manage, store, and track paper. In fact, large organizations lose one document every 12 seconds, so important documents may never end up where they were intended to go.
  • Reducing errors: Paperwork is received 25% slower and has 50% more errors than digital tools. Businesses that utilize paper forms and paper documentation are prone to more errors, inconsistencies, and inaccuracies. By switching to mobile and digital software and systems, companies can expect their error rate to drop and their efficiencies to improve
  • Improved access to data in real-time: In order for businesses to run at their optimal efficiency, they need to know exactly what is happening in the field in real time. Since most employees have a mobile phone or tablet, they are able to gather information faster, more accurately and consistently while in the field.
  • Profitability Skyrockets: As manual, error-prone, time-consuming tasks are eliminated, productivity increases. Companies are able to reallocate time to revenue-generating tasks, which means more production, faster deliveries, and larger profit margins.

4. Creating Positive Digital Transparency Across The Company

Acting as a window into various facets of the business, digitalization can provide complete transparency into core functions of the business. Bulk material companies with sites spread across the U.S. and throughout the world need to know what is happening at sites daily instead of waiting for issues to rear their ugly heads at the end of the year.

The most valuable asset that a bulk materials company has is the products it sells. From aggregates and ready-mixed concrete to landscape materials and pulp and paper products, knowing how much inventory is on hand is critical for operations. By automating inventory ordering and monitoring levels digitally, companies can ensure that they are ordering timely inventory and not ordering in excess or duplicative inventory. Ensuring just the right amount of product is on hand when needed makes companies more profitable.

With digitalization, management and operations teams will have more transparency into what is happening from the ground up. From reducing human-error to creating trust between management and boots on the ground, establishing digital tools that improve transparency can positively impact the culture simply by reducing friction.

5. Create Impactful, Long-Term Relationships with Your Digital Partners

When bulk material companies start seeking partners in their quest for digital advancement, look for partners that are deeply invested in bringing greater value to your company, not just in the signing of a contract. Partners that are invested in a long-term relationship and the outcome of the digital advancement efforts are invaluable to the business.

Think about this scenario for a moment. A company partners with a digital advancement company that offers a tool to improve a core function of the business, but they are only interested in selling the tool and not interested in hearing about the application, the implications, or the areas of struggle for the team. Because the company isn’t invested, the partnership fails, budget is wasted, and trust internally is sacrificed unintentionally.

In contrast, the same company partners with a digital advancement company that is invested in a long-term partnership, so much so that they help educate the team on the best practices and use cases for the tool and how it will improve the overall company. They listen to the areas of struggle and opportunity and implement feedback into future developments, and/or recommend another solution that could positively impact the business. Because the digital advancement company is acting as a stakeholder and a partner versus a vendor, the relationship thrives and the bulk materials company continues to digitally advance, improves efficiency and as a result, builds trust throughout the company.

Which partnership sounds better? (It’s a rhetorical question).

The First Step Toward Digitization Starts With How You Track Your Piles

Stockpile Reports may not be able to automate the delivery of your lunch to your desk or job site, but we can help you automate the measurement, management, and tracking of your bulk material stockpile inventory. We act as a deeply invested, long-term partner and want to improve not only the financial aspect of your business but also the way that your company operates from a cultural perspective.

If you are ready to automate your inventory level tracking and inventory ordering systems, contact us and we’d be happy to show you how we believe our tool can help take your company to the next level.

Why The Ready Mix Concrete Industry Must Modernize for the Future

At Stockpile Reports, we are deeply invested in providing precise, fast, and reliable inventory solutions to the bulk materials industry. We recently announced our newest solution, Stockpile Reports for Logistics, a near real-time auto-replenishment inventory solution. Our Logistics solution uses low-cost fixed cameras and Stockpile Reports’ pile modeling system to provide near real-time inventory levels, dramatically improving the way that ready-mixed concrete (RMC) companies measure and track their inventory, driving efficiencies at all their plants.

Numerous trends in the RMC industry will require digitization of core functions of businesses to remain competitive, reduce write-offs, eliminate risks, and become more profitable than ever before. Digitizing core functions of an RMC company may sound daunting because where do you start? But remaining in the “wait and see” zone isn’t an option any longer.

There is a major, fast-paced move towards digitalization sweeping the market today. At the core of this digital transformation are technological solutions aimed at improving, enriching, and maintaining functions of businesses alike.

Not Digitizing Core Functions is No Longer an Option

Experts suggest that the construction industry is one of the fastest growing industries in the U.S. and is expected to have one of the largest increases in real output, reaching nearly $1.2 trillion dollars by 2020.

RMC manufacturers must become agile and reallocate their workforce to production tasks to meet the demands of the construction industry.

In order to accommodate for growth and make this shift, manufacturers will find themselves digitizing previously manual tasks, such as inventory counts, to free up their workforce. They will find themselves relying on real-time data to improve their internal processes, like order processing, and inventory and production control, to harness even greater efficiencies.

Alternatively, if manufacturers choose to ignore change and continue to do business as usual, they will likely find themselves outbid by competitors. Lagging behind in digitization will create an increased level of frustration and tension between production and management, or even worse, cause the manufacturer to knock on the door of exiting the market altogether.

Failure to digitize and keep up with the fast-paced technological advances that are occurring in the industry could be detrimental, if not fatal. On average, over 30 percent of plants existing in one Economic Census will no longer be operating five years later when the next census is taken. This level of change might strike some readers as high, but it is within the typical range observed across four-digit manufacturing industries.

Digitizing Decreases Write-Offs

No one wants to talk about the end of the year and the impending write-offs that are looming over everyone’s heads. We all know it’s coming, but we are all pretending like maybe it won’t be as bad as last year.

Inventory write-offs, especially large, recurring write-offs, can indicate that an RMC plant has poor inventory management. The plants may be purchasing excessive or duplicative inventory because they are uncertain what they currently have on hand, need to reorder, are using existing inventory inefficiently, or all of the above.

To avoid ordering too much or too little inventory, companies are able to automate the entire process by continuously monitoring stockpile inventory levels. Stockpile Reports for Logistics utilizes affordable fixed cameras to monitor inventory levels in near real-time and reorders inventory when needed. Orders are placed automatically when stockpile levels drop below a customer-defined threshold, eliminating human-error entirely.

Bulk material companies can trust that their inventory levels are being precisely and consistently monitored to increase production, eliminate risk and human-error, avoid stock-outs, and drive efficiencies to record levels.

Digitizing Frees Up Thousands of Man-Hours per Year

RMC companies should also consider digitizing their inventory measurement process completely. What if an RMC company could measure their stockpiles via a drone, airplane, or iPhone, then view the results of the measurements through a user-friendly dashboard, freeing up thousands of man-hours per year? Well, it’s not too good to be true and it’s easier than one might think.

Based on established SOP’s (Standard Operating Procedures), RMC inventory is typically counted at the end of a given time period and costs of goods sold are recorded based on the difference between the available inventories and the ending inventories. RMC plants often do daily inventory checks to confirm replenishment orders and perform monthly inventory counts to reconcile delivery tickets with finance.

Digitizing inventory measurement and management creates transparency between leadership and production, reduces risk, eliminates human-error, provides insight into areas for improvement, and allows for the reallocating of man-hours to revenue generating production tasks.

Digitalization Increases Productivity

According to a Market Research Future raw research report, the RMC industry is expected to grow at a CAGR (compound annual growth rate) of 8.02% from 2017 to 2023. This growth is attributed to many factors including an increase in population and the associated need for residential homes, commercial buildings, retail spaces, and infrastructure such as roads and highways, etc. to support the population growth.

If a plant digitizes its inventory measurement and management processes, including automating the ordering of materials, it can reallocate workers to revenue generating production and delivery tasks. Closely monitoring these KPIs is critical to improving profitability and remaining agile to the demands of the construction industry.

More, More, More!

As RMC producers begin to digitize their operations and material tracking, they begin to reap the benefits of efficiency. They are able to produce materials more efficiently and meet the demands of the marketplace without cutting corners.

RMC producers are not just manufacturers, they are logisticians: they deliver, typically on short notice, a perishable product to time-sensitive buyers in multiple locations and they need to do it efficiently to avoid inventory loss and remain competitive.

Automating previously manual tasks can free up resources to produce more and deliver more and do them both more efficiently than ever before.

Automation and Digitization Are Knocking

With Stockpile Reports for Logistics, you will have the power to easily automate all your material reorders and eliminate tying up all your man-hours with inventory counts. Gone are the days of daily inventory checks, monthly and quarterly inventory counts, and large, recurring write-offs.

Automation and digitization are taking the industry by storm. It’s a huge shift that is taking place in many industries but particularly in the construction and building material industries. Companies are taking on digitizing core functions of their businesses to harness efficiencies, which will prove to be critical in the immediate future and well into the next decade.

It’s time to step into the ring and improve your bottom line. Are you ready?


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