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 tons./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) | Planning process is Time-consuming | Lost or delayed sales |
| Excess stock as well as stock outs | Simultaneous occurrences of Stock-outs, Excess stock, and Restricted replenishment | Low forecasting accuracy; 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 resulted in a sales increase, at the same time as the DDMRP Go-Live, which simultaneously allowed a decrease in stock coverage in days and a reduction in lost sales.
- Favorable evolution of On-Hand status, as combinations of SKUxSite
- 50% reduction of excess (vs on-hand)
- 25% increase of on-hand OK’s (vs on on-hand)
- 30% reduction of stock-outs
- Customization of company’s specific rules
Related Cases
MRO
