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

SupplyOperationsDemand
Each site/channel replenishment was
constrained to its forecast (no pooling)
Time-consuming processLost or delayed sales
Excess stock as well as stock outsLow 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