Partners:
Resource integration and interaction delivering results
DeAcero offers a wide variety of products, serving different business sectors, besides counting with the DeAcero Logistics business unit. The company is a major reference for the industry in Mexico and abroad
Produced by Jassen Pintado Interviewee: Raúl Gutiérrez Durán, Global Supply Chain Director for Grupo DeAcero and CEO for DeAcero Logistics
Grupo DeAcero
G
Manufacturing
rupo DeAcero
reinforcement, wire rod, steel rod, profiles,
opened for business
angles, beams, canals, wire mesh, trusses,
more than 70
panels, nails, chains, cables, guy wire and
years ago as a
a wide variety of fences, bars and wire
family business
products for the automotive, infrastructure,
started by César M.
energy, hardware, manufacturing, mining,
Gutiérrez Lozano
and oil & gas sectors.
in his workshop in Monterrey, Nuevo Leon (Mexico). Mr. Gutiérrez expanded his product portfolio, grew his staff and, as decades went by, DeAcero increased its presence nationwide and abroad, becoming a leading company in manufacturing and exports of long steel, wire and reinforcement steel products. DeAcero has 18 production plants, 21 recycling facilities and delivers 4.5
EXPERIENCED LEADERSHIP IN KEY POSITIONS DeAcero’s success results from a series of efforts, optimizations and generations’ work in different areas, and to a large extent from the evolution in its logistics area, which depends on Raúl M. Gutiérrez Durán, a professional with wide experience in the company’s processes. Gutiérrez Durán is the Global Supply
million tons of steel per year. Since the
Chain Director for the DeAcero group, CEO
seventies, DeAcero’s products are sold in
for DeAcero Logistics and a member of
Latin America, and during the nineties the
the Grupo DeAcero’s board of directors.
company expanded into the USA, supported Gutiérrez Durán graduated in industrial by its own plants in Houston, Texas and engineering from ITESM (Monterrey Institute Missouri, as well as its warehouse in Laredo, of Technology and Higher Education), where Texas and 29 distribution centers throughout he graduated with honors. In 2014, he North America. DeAcero currently offers the widest range of products for construction and steel
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January 2021
earned an MBA from the Stanford Graduate School of Business (California). Gutiérrez Durán first joined DeAcero in
Grupo DeAcero
Manufacturing
- Raúl Gutiérrez Durán, Global Supply Chain Director for Grupo DeAcero and CEO for DeAcero Logistics
“We are looking to cover every link in the supply chain in its entirety. We are convinced that focusing beyond costs, an internal collaboration and alignment among our operational areas, and an external alignment and proximity to our clients through an ‘outside in’ philosophy is the right strategy”
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TRANSFORMING OPPORTUNITIES TO TANGIBLE BENEFITS
For more information, information click here
A professional firm focused on transforming opportunities to tangible benefits, KFW Consultants has more than 30 years of experience consulting across 4 continents. Specializing in the development of profitability models and operational designs, the firms’ solutions consider industry best practices and leading information systems.
www.kfwconsultants.com
Supplier Profile
Ye a r E s t a b l i s h e d : Oct/2010 Industr y: Consulting Main Ser vices: Consulting on the Improvement of Operations and Profitability Growth.
Development of t hree Dist ribut ion Centers (DC) covering ser vices in t he Nor t h, Ba jío and L a r e d o , Tx r e g i o n s . Ser vices Included: Business Case Development supporting DC approval, including: the building site, construction specifications, and operating equipment requirements. Site Planning Laredo covering the site size and design, positioning of the future building, parking lots, offices and optimal flow of truck traffic. Layout design including building specifications for height under joists, distance between columns, dock doors, ramps, work areas, positioning of the fixed equipment and inventory. New Operating Model focused on the management and execution of work processes, cycle times (from receipt to storage, picking to shipping), inventory management and KPIs. Alignment with WMS Information Systems following the new operating model, support in the preparation of a WMS (Oracle Warehouse Management System). Implementation and On-Site Training (i.) coordination and validation of the fixed equipment installations, and (ii.) conference room and onsite training at the management and operating level, prior to and following go-live. Design and Implementation of a Profitability to Serve Model (RDS), Based on a common platform of information throughout the organization, developed with Deacero´s IT a profitability model covering costs and revenues from production, distribution and sales. With profitability dashboards management has gained visibility on what contributes or erodes the contributions to profit at a SKU, order and/or customer level, as well as by DC, sales channel, region, etc… M a n a g i n g P a r t n e r : Ken F. Wallett We b p a g e : www.kfwconsultants.com
2008 as head of production in one of the company’s wire production plants. “From
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chain,” Gutiérrez Durán commented. Among other activities, Gutiérrez Durán’s
there, it was all growth and learning at
position as vice-president of CAINTRA
different operative positions until becoming
(Chamber of the Transformation Industry
a director in one of our wire production
of Nuevo Leon) stands out as well as his
plants. Afterwards, I took my master’s
membership and active partaking in other
degree, I worked in the Supply Chain area
important associations and groups such
for Apple and returned to DeAcero to
as the Horno 3 museum’s Foundation for
become the director of our global supply
Education, Science and Technology.
January 2021
Manufacturing
Grupo DeAcero
UNDERSTANDING THE MARKET TO OBTAIN THE CLIENT’S SATISFACTION One key attribute for DeAcero has been the company’s ability to evaluate the different factors involved in order to modify and optimize processes and functions. “We have divided our understanding of the market to adapt our whole organizational structure and strategies,
We’ve engaged in an important mindset transformation, taking us from thinking processes from the inside-out to go from the outside-in. This frame of thought starts from analyzing the environment to develop transformation toward the company’s core,” Gutiérrez Durán said. “This drives us to reassess the way we
offering a better service, finding
perceive ourselves, the way we perceive
ourselves aligned to our clients’ needs.
our clients, our markets, the way we
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Our vision of innovation. Total MĂŠxico, with its Lubricants division, becomes a strategic partner for the DEACERO company nationwide, supplying the 35 locations it has for 5 years.
www.total.com.mx
Manufacturing
Supplier Profile N u m b e r o f E m p l o ye e s : 9 6 ,0 0 0 + Ye a r E s t a b l i s h e d : F o u n d e d i n 19 2 4 u n d e r t h e n a m e o f Compagnie française des pétroles CFP w i t h m i xe d p r i v a t e a n d Fr e n c h S t a t e p a r t i c i p a t i o n , i n 19 8 5 i t a d o p t e d t h e n a m e To t a l - C F P a n d o n l y To t a l S . A . i n 19 9 1. Following the merger with the Belgian company P e t r o f i n a i n 19 9 9 , t h e c o m p a n y a d o p t e d t h e n a m e To t a l F i n a . L a t e r i t a b s o r b e d E l f Aquitaine and from March 22, 2000 it was c a l l e d To t a l F i n a E l f u n t i l o n M a y 6 , 2 0 0 3 i t w a s d e c i d e d t o r e c o ve r t h e u n i q u e n a m e o f To t a l .
Industr y: TOTA L i s o n e o f t h e l a r g e s t o i l a n d f u e l c o m p a n i e s i n t h e w o r l d , a c t i ve i n m o r e t h a n 15 0 c o u n t r i e s .
Main Ser vices:
conceptualize investments, processes and our own organizational structure,” the executive added. Operations in the production, logistics, distribution, transportation and commercial areas have been restructured from an operational territorial organization previously set as a silo, into a channel, segment and attention model arrangement, leaving behind the “one size fits all” model by adapting and customizing work processes to the client’s satisfaction. Changing these paradigms also
Impor tant actor in the exploration and production of oils and natural gases, r e f i n i n g , m a r ke t i n g , g a s e s a n d n e w energies, commerce and chemicals.
brings an intelligent balance between
Recent Projects:
systems and allowing a better
B u s e s c u e l a (a n i n n o v a t i ve t r u c k t h a t w e t a ke d i r e c t l y t o t h e f a c i l i t i e s o f o u r c l i e n t s and prospects to carr y technical training on dif ferent topics for industries, lubricants for Diesel engines, lubricants for gasoline e n g i n e s , m i n i n g i n d u s t r y, m e t a l l u r g y, e t c . , using educational tools and technological ones such as vir tual reality and lubricant demonstrations within a didactic engine.
M a r i e D j o r d j i a n , C EO We b p a g e : w w w.to t a l .c o m . m x
cost and service, optimizing work understanding of the market resulting in delivering optimized services. One of the key strategies has been the deployment of the spoke-hub model in distribution centers with reliable solutions as satellite distribution transfer centers and last mile locations support the strategy and commercial programs, thus increasing our value offer.
Fo r m o r e i n f o r m a t i o n , c l i c k a q u í
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Grupo DeAcero
Manufacturing
COVID19: TAKING CARE OF THE STAFF AND BUSINESS CONTINUITY The pandemic’s consequences drove Grupo DeAcero into taking timely action,
support and coverage to comply with health and hygiene regulations. “We also
allowing for operational continuity in
share resources and contents about best
safe conditions, without compromising
practices among our clients, suppliers and
its personnel’s health. Outwards, the
the company, benefiting each other’s staff.”
company and its strategic partners became
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closer, developing strategies for mutual
January 2021
“We operate with more intelligence and
Grupo DeAcero
Manufacturing
“We’ve engaged in a mindset transformation, taking us from thinking processes from the inside-out to go from the outside-in, to develop transformation toward the company’s core” - Raúl Gutiérrez Durán, Global Supply Chain Director for Grupo DeAcero and CEO for DeAcero Logistics
attention to detail regarding inventory and
the tactics, strategies and operations
supply planning. This situation pushed us
and creating a Procurement Intelligence,
into creating new processes focused toward
supported by a centralized negotiation and
the development of new consumables and
specialized regional clusters.”
replacement parts in an effort to avoid
“We are becoming a shared services
any stoppage. Roles and liabilities were
area in order to disseminate and ensure
restructured in procurement, setting apart
the fulfillment of the best practices in
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www.sintec.com informes@sintec.com Sintec
Sintec_
procurement and securement in every
partnerships have resulted in win-win
function of the company’s purchasing area,
strategies, enabling the creation of the
looking to create win-win conditions with
alternatives that bring more value for
our vendors,” Gutiérrez Durán declared.
DeAcero. “We’ve searched for an efficient integration of every factor’s management,
SUPPLIERS AND STRATEGIC PARTNERSHIPS Strategic suppliers sought-after by DeAcero stand out due to timely deliveries, a flexible portfolio, and adaptation capabilities toward the company’s requirements for short lead times. These
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January 2021
changing this concept from a supply chain to a value chain,” Gutiérrez Durán explained. “Our supplier evaluation and our Quarterly Business Reviews are focused on improving our productive chain, and becoming more resilient and competitive.”
Manufacturing
Supplier Profile
NEW STRATEGY IN TRANSPORT As with other parts of the business, transport was also affected by the pandemic, taking Grupo DeAcero into
N u m b e r o f E m p l o ye e s : 200+ Ye a r E s t a b l i s h e d : 0 8 / 12 / 19 87 Industr y: C o n s u l t i n g w i t h m o r e t h a n 3 0 ye a r s o f ex p e r i e n c e i n L a t i n A m e r i c a , g e n e r a t i n g va l u e a s a t r u s te d a d v i s o r for the leaders of the region. Main Ser vices: Management & Business Consulting Recent Projects: We h ave h a d m u l t i p l e a n d va r i e d projects with companies from all i n d u s t r i e s i n t h e l a s t ye a r, s o l v i n g eve r y t h i n g f r o m i nve n to r y s t r a te g i e s , supply chain transformation, supply catalog management, SAP solution implementations, omnichannel s t r a te g i e s , c u s to m e r ex p e r i e n c e , to o r g a n i z a t i o n a l d e s i g n , c h a n g e management and more. O s c a r L oz a n o, Pa r t n e r D i r e c to r We b p a g e : w w w. s i n te c .c o m
rethinking its strategies to continue providing timely solutions to clients: • New intelligent, dedicated and rented schemes were created by establishing strategic agreements with vendors, allowing the company to ensure product conveyance by making the most out of every trip. • Truck contents and routes were optimized, aligning each trip with a product mix able to satisfy the clientele’s specific needs, according to our salesforce and clients’ agenda. • Conveyance was reorganized by centralizing operations into central and regional clusters, arranging this area in clear planning, negotiation and management dimensions. “This allowed us to get to know the conveyance market much better and expand our vendor portfolio,” the executive explained.
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Grupo DeAcero
Manufacturing
State - of-the - a r t data ana lysi s del ive r s usefu l info r mation to the Logistics d e p a r t m e nt, i m p rov i n g decision-making
TECH DEPLOYMENT TO OPTIMIZE PROCESSES AND PRODUCTS The adoption, digitization and automation of processes have allowed the group to face the conditions of a volatile, hard-fought market in which deployment, training and
and automated analysis of its distribution network, which allow for better strategic decision-making. This resulted in obtaining such advantages as a constant redesign
better use of tech resources result in a great
process of the operating logistics network
competitive advantage.
able to bring more agility in attention to
The tech and digitization projects
the market, which increases predictability
DeAcero developed include new resources
when supported by optimized inventory
such as the control tower -providing data
management.
visibility and management-, end-to-end, purchase-to-pay (P2P) and order-to-cash
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(O2C) processes, along with recurrent
N ao nv ui ea m J r yb r2e0 22 10 2 0
In its behalf, quality in production lines has also included digitized processes, as
Grupo DeAcero
well as the warehousing and conveyance processes. “This allows us to maintain our competitiveness!”, the executive pointed out. DEACERO LOGISTICS Strongholds in Grupo DeAcero’s logistics and infrastructure have thrived after DeAcero Logistics (DAL) was created in 2016. DeAcero Logistics offers train freight,
Manufacturing
“This drives us to reassess the way we perceive ourselves, our clients, our markets, the way we conceptualize investments, processes and our own organizational structure” - Raúl Gutiérrez Durán, Global Supply Chain Director for Grupo DeAcero and CEO for DeAcero Logistics
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Grupo DeAcero
Manufacturing
roadways, cross-border transportation,
DeAcero Logistics, the company achieves
VAS (value added services) storage,
a 110% YOY (year over year) growth
consulting, rentals, international trade,
supported by its philosophy: placing clients
maritime cargo and distribution network
and suppliers first, prioritize service, add
analysis. DAL works for different industries
value to its entire chain and create synergies
and segments, including paper, oil, metal-
able to optimize the use of available
mechanics, containers, specialty and retail,
resources within and beyond the company.
among others. DAL covers the Americas, Asia and Europe. Since GutiĂŠrrez DurĂĄn created
Steel rei nfo rcement p rod uct s, wi re rod, steel rod, prof iles, wi re mesh, fences, chains and nai ls a re some of the items manufactu red and sold by DeAcero
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January 2021
“DeAcero Logistics enables us to offer competitive products and solutions, providing our clients with complete services,
Grupo DeAcero
Manufacturing
helping them focus and thrive in their
The company’s intranet constantly shares
business,” Gutiérrez Durán commented.
information capsules covering individual achievements, both in the personal and
MANAGING THE HUMAN ELEMENT Staff management principles at DeAcero
professional spheres. New hires have access to onboarding programs, and all
covers different aspects acknowledging
the staff can take place in mentorships and
the personnel’s work, offering wages
talent development programs. Ongoing
above market average, to begin with. The
inclusion programs highlights female
company offers flexible schedules and open
leadership within the company.
spaces designed with collaboration in mind.
It should be noted that in spite of the
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Grupo DeAcero
Manufacturing
“We are becoming a shared services area looking to create win-win conditions with our vendors” - Raúl Gutiérrez Durán, Global Supply Chain Director for Grupo DeAcero and CEO for DeAcero Logistics
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January 2021
Grupo DeAcero
Manufacturing
pandemic, DeAcero maintained all of
first steel supplier whose products are
its staff, no adjustments were made,
LEED-certified (Leadership in Energy and
whatsoever.
Environmental Design). Also, total water
Social activities such as taking part in
consumed by DeAcero in every process
local sports tournaments are supported by
is destined for reuse, while 98% of waste
the company as are benefits and discounts
derived from these processes is recycled for
in determined purchases and services,
use in other industries.
besides rewarding employees’ children with
On its behalf, the DeAcero Foundation
scholarships. The whole family has a place
has established links with the community
in DeAcero through workshops and learning
through different programs focused on
activities covering subjects from handcrafts
social, health and education matters. On
to finances.
its own and along with other organizations,
“The importance we give to our workplace
the DeAcero Foundation has contributed
culture, large family environment and
to goals set in the 2030 Sustainable
employee satisfaction are key subjects in
Development Agenda, adopted by the
our staff surveys, the feedback we obtain helps us improve in these areas,” the executive said. SUSTAINABILITY WITHIN THE COMPANY AND BEYOND Efforts by DeAcero in contributing to
United Nations Organization, through 10 projects aimed at eradicating poverty, 12 to bring hunger down to zero, 39 aimed to good health and well-being, 25 for access to quality education, 3 for gender equality, 7 for decent work and 18 to reduce inequality.
society are well beyond business and
The foundation also supports 2 other
commercial purposes. DeAcero is the
projects for responsible consumption and
largest recycler in Mexico. All of the raw
production, 1 climate action project, 4 for
material used by the company is derived
peace and justice-strong institutions and
from recycled steel, processing more than
101 partnerships to achieve these goals.
3M tons a year. DeAcero is also Mexico’s
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Manufacturing
Grupo DeAcero
Since Gutiérrez Durán created DeAcero Logistics, the company achieves a 110% YOY growth supported by its philosophy: placing clients and suppliers first, prioritize service, add value to its entire chain and create synergies able to optimize the use of available resources within and beyond the company
CHALLENGES: A NETWORK
network becoming an important
ABLE TO INCREASE THE VALUE
differentiating factor.
OFFER FOR CLIENTS The current conditions in
• Relying on collaboration
every market bring along
and management dynamics
different challenges, such as
focused on delivering business
volatility, possible trade blocs
results through policies aligned
and setbacks. DeAcero sets
with commercial and service
the following goals facing these
expectations, making the most
factors:
from logistic locations to offer a wide portfolio of customizable
• Integrating and aligning the value chain with a focus
January 2021
industry.
on the client. This implies
speeding up the supply chain
• Increasing digitization
with technology to align and
in key processes -such as
control it by assembling each
e-business-, through platforms
of its parts, creating a flexible
bringing the company closer to
omnichannel network. This
its clients.
results in an integral logistics
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packages and solutions for each
Grupo DeAcero
Manufacturing
• Developing the business’ knowledge, technical and personal abilities of every individual involved, guaranteeing the proper development of roles with a focus on adding value for clients, for our integral value chain and our company. “We are looking to cover every link in the
FOUNDED:
1952 (DeAcero Logistics, 2016)
supply chain in its entirety, from purveyors, production facilities, storage, distribution and most importantly, our clients. We are
INDUSTRY:
convinced that focusing beyond costs, an
Steel products manufacturing and commercialization
internal collaboration and alignment among our operational areas, and an external alignment and proximity to our clients through an ‘outside in’ philosophy is the right strategy,” Raúl Gutiérrez Durán, Global Supply Chain Director for the DeAcero group and CEO for DeAcero
WEBPAGE: www.deacero.com www.dalogistics.com
Logistics finalized.
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