From Phone Calls to AI Chat: How Holcim is Simplifying Cement Orders with AI

Holcim, a 112-year-old construction materials company, is proving that even traditional industries can benefit from cutting-edge digital innovation. By integrating generative AI (gen AI) into its ordering system, Holcim is transforming a previously manual process into a streamlined, AI-powered experience. Instead of calling a sales rep to order cement, customers in Holcim’s pilot program in Spain can now use WhatsApp to place orders through a conversational AI assistant. The AI understands natural language, suggests relevant orders based on past purchases, and allows modifications—all before automatically confirming the order for shipment. You can read or watch a video interview that discusses this application.

The results speak for themselves: AI-generated order proposals had a 66% acceptance rate, and customer adoption skyrocketed from 25% to 93% compared to previous digital portals. The key to this success? Meeting customers where they already are—on familiar platforms like WhatsApp—and ensuring the AI interaction feels natural. However, Holcim also faced challenges, including AI-generated mistakes (such as misinterpreting an order request for gazpacho soup) and balancing response speed to match human-like interactions. Now, Holcim is preparing to expand this system across Europe and globally, with plans to integrate AI into phone calls and emails for a truly omnichannel experience.

As AI becomes an increasing part of more efficient marketing, you may be seeking real world examples you can add to your lectures or class discussions. This example could be shown when you cover Chapter 6 (organizational buying processes and relationship dimensions in particular) or Chapter 14 (personal selling, particularly the order-taking task).

A first draft of this blog post was generated by sharing the article with ChatGPT.

In-Class Activities

1. AI in Sales Role-Play: Have students simulate an AI-assisted B2B sales interaction versus a traditional phone-based order process. Discuss the differences in efficiency, customer experience, and sales outcomes.
2. AI Implementation Case Study: Assign groups to research other industries using AI for customer service automation (e.g., banking, retail, healthcare). Compare their approaches to Holcim’s model.
3. AI Ethics Debate: Discuss the risks and benefits of using AI for customer interactions, including potential issues such as misinformation, job displacement, and over-reliance on automation.

Discussion Questions & Answer Ideas

1. How does Holcim’s AI-enabled ordering system streamline the straight rebuy process? (Chapter 6, Straight Rebuy)
   • A straight rebuy occurs when a business reorders the same product without modifications.
   • Holcim’s AI remembers past orders, automates reorder proposals, and simplifies the process.
   • This reduces time spent on routine purchases, making buying more efficient.
2. What impact does AI have on the buyer-seller relationship between Holcim and its customers? (Chapter 6, Buyer-Seller Relationships)
   • This interview could be interpreted through the lens of the dimensions of buyer-seller relationships in Chapter 6.
   • Consider how it influences, information sharing and operational linkages.
   • You might also ask how this system might evolve, and how if it gets smarter, it could lead to greater cooperation (as a problem solver) and even possible relationship specific adaptations (if the AI was customized by customer).
3. How does generative AI enhance the personal selling process at Holcim?(Chapter 14)
   • AI automates routine orders, allowing sales reps to focus on complex transactions and relationship-building.
   • It increases efficiency and improves response time.
4. What are the key advantages of using WhatsApp as an ordering platform?(Chapter 14)
   • Familiarity and ease of use for customers.
   • No need for additional app downloads or training.
5. What challenges did Holcim face in implementing AI, and how did they overcome them?(Chapter 14)
   • AI-generated errors (e.g., mistaking a cement order for soup).
   • Fine-tuning AI responses to sound more natural.
   • Ensuring response time is human-like but still quick.
6. How does AI adoption impact customer service in B2B industries?(Chapter 14)
   • AI reduces friction in ordering, increasing efficiency.
   • Speed of response.
   • However, some customers may still prefer human interaction.
7. How could Holcim further enhance its AI-enabled ordering system?(Chapter 16)
   • Extend to phone and email interactions using AI-assisted voice recognition.
   • Integrate with CRM systems for personalized recommendations.