One of the major unknown factors that can impact this business is weather. The weather could be bright and sunny at the terminal, but at the construction site, heavy rain may be halting construction.
This has a major impact on replenishment logistics and while orders may be coming in, material may be at a standstill because of harsh weather. By implemeting Vendor Managed Inventory (VMI) our customer now has a way to increase his role in customer cement shipments (i.e. they can be proactive based on customer demand and inventory in the future). Having the ability to commission level gauges and troubleshoot measurement issues remotely, played a significant role in choosing Endress+Hauser as a supplier. They manage all new VMI sites as a new project and coordinate site installations where required by hiring local electrical and mechanical contractors.