Deacero - BBR_Brochure

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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



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


January 2021

earned an MBA from the Stanford Graduate School of Business (California). Gutiérrez Durán first joined DeAcero in

Grupo DeAcero


- 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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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.

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 :

2008 as head of production in one of the company’s wire production plants. “From


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


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.


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 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


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


closer, developing strategies for mutual

January 2021

“We operate with more intelligence and

Grupo DeAcero


“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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13 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


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.”


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


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


visibility and management-, end-to-end, purchase-to-pay (P2P) and order-to-cash


(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,


“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


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


January 2021

“DeAcero Logistics enables us to offer competitive products and solutions, providing our clients with complete services,

Grupo DeAcero


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


“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


January 2021

Grupo DeAcero


pandemic, DeAcero maintained all of

first steel supplier whose products are

its staff, no adjustments were made,

LEED-certified (Leadership in Energy and


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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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


network becoming an important


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


from logistic locations to offer a wide portfolio of customizable

• Integrating and aligning the value chain with a focus

January 2021


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


packages and solutions for each

Grupo DeAcero


• 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


1952 (DeAcero Logistics, 2016)

supply chain in its entirety, from purveyors, production facilities, storage, distribution and most importantly, our clients. We are


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


Logistics finalized.

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