Overview
Largest steel producer in the world and one of the largest producers in the mining segment, the ArcelorMittal Group is present in over 60 countries, in 19 of them with industrial operations, and over 210,000 employees. Leader in research & development, it invests in new technologies to transform tomorrow and make steel one of the most sustainable materials on the planet. At its 12 research centers, some 1,300 researchers develop more efficient products and processes that drive value for customers and ensure future growth.
ArcelorMittal Brazil is the largest steel producer in the country, with an installed capacity of over 12.5 million tonnes/year. With industrial plants in six states, the company employs about 17,000 people and produces high-quality long and flat carbon steels for the automotive, household appliances, packaging, construction and shipbuilding industries. It is also a player in mining, power generation, renewable bioreducer production and information technology sectors. Its extensive distribution and service network meets the demands for the domestic and international markets.
Challenge
| Supply | Operations | Demand |
|---|---|---|
| Each site/channel replenishment was constrained to its forecast (no pooling) | Time-consuming process | Lost or delayed sales |
| Excess stock as well as stock outs | Low forecasting accuracy, resulting in out of stock, excess stock and restricted replenishment | Low visibility and responsiveness |
| Time-consuming process, subject to spreadsheet errors and limitations | Min-max parameters calculated in spreadsheets, updated every 1 to 3 months | Monthly forecast with low accuracy at SKU-Site level |
| Lack of basic planning and execution tools |
Results
- Market conditions favoured sales increase, coincident with DDMRP GO-Live which allows a decrease of stock coverage in days and a reduction in lost sales simultaneously
- Favourable evolution of On-Hand status, as combinations of SKUxSite
- 50% reduction on excess (blue)
- 25% increase on on-hand Ok’s (yellow + green)
- 30% reduction on dangerously low (black + red)
- Customization of company particularities
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