Steel Industry

Arcelor Mittal

Overview

A world leader in steel production and one of the largest in mining, the ArcelorMittal Group has customers in 160 countries and employs more than 190,000 people. In its 11 research centers, around 1,300 researchers develop more efficient products and processes aimed at generating value for customers and ensuring future growth. ArcelorMittal Brasil operates in steel production in the country, with an installed capacity of more than 12.5 million tons / year. With industrial plants in six states, it employs around 17,000 people. It produces high-quality flat and long steel for the automotive, appliance, packaging, civil construction and shipbuilding industries. It also operates in mining, power generation, production of renewable bioreductors and information technology. Its extensive distribution and service network meets the demands of the national and international market.

Challenges

Suministro
Demanda
Operaciones
Mercado
Finanzas
Consumidores
Clientes
Each warehouse/channel replenishment was restricted to its forecast (no grouping)
Excess stock, as well as stock outs
Slow process, subject to errors and spreadsheet limitations
Time-consuming process
Low forecast accuracy, resulting in stockouts, excess stock, and restricted replenishment
Minimum-maximum parameters calculated in spreadsheets, updated every 1 to 3 months
Lack of tools to plan execution
Lost or delayed sales
Low visibility and responsiveness
Monthly forecast with low accuracy in the SKU center

Results

  • Market conditions favored an increase in sales, coinciding with the Go-Live phase of DDMRP, which allowed a decrease in inventory coverage in days and a reduction in lost sales simultaneously!
  • Favorable evolution of the Available status, as SKUxCenter combinations
  • 50% reduction in excess (blue)
  • 25% increase in available availability (yellow + green)
  • 30% reduction in dangerously low (black + red)
    Customization of the company's particularities

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