Success Story
ArcelorMittal Dudelange
Successful supply chain reengineering
MISSION
The main mission was to increase delivery service to the market as well as the efficiency of the organisation. A higher turnover, higher productivity and reduced stocks will enable a higher free cash flow. A further target was to increase the market share in the automotive business. And the acquired company Ewald Giebel (ELO) had to be integrated and converted to one management and production system.
SOLUTION AND WORK PROCESS
Reengineering of the supply chain control from Push to Pull and build up a standard production system end-to-end
Realisation of an integrated planning system from order entry to dispatch of customer orders
Specification of the new ERP functionalities for management and control of production processes
Definition and realization of an integrated management information system with KPIs
Introduction of an integrated material management concept for the both plants
Design, development and introduction of an MES and campaign planning tool
Introduction of a new control system for the delivery and dispatch area
RESULTS
Integration of Ewald Giebel production and set up of a new production system for AM Dudelange
Increasing delivery reliability: HDG production unit to > 92%, ELO production unit to > 90%
Reduction in stocks: HDG production unit > 45%, ELO production unit > 75%
Cost reduction: 30% in the areas of personnel and resources in general
Romain Keiser
General Manager
“The management team realized the conception and implementation of the supply chain management project together with STREMLER. The switch from Push to Pull has significantly improved our responsiveness to the market. We were able to significantly increase both the level of delivery service and productivity in logistics. The capital commitment was reduced not only at ArcelorMittal Dudelange but also among our most important customers. The safety stocks for primary material could also be reduced while increasing availability. With the support of STREMLER AG, we were able to further improve the key management figures by introducing KPIs on two levels, thereby better assigning responsibility in the management organization. The collaboration with STREMLER has contributed significantly to the success of the supply chain optimization project."
