Corporacion AG | BBR - Brochure

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Corporación AG

A responsible supply chain, with AG’s star of excellence Upon challenges displayed by macroeconomic contexts and the region, Corporación AG has strengthened its supply chain and logistics area by creating strategies in different fronts, optimizing its offer and service

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August 2023


Produced by Jassen Pintado Creative Direction Omar Rodriguez Interviewee Juan Jacobo Alvarado, Chief Supply Chain Officer for Corporación AG

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Corporación AG

Corporación AG has been

companies such as Tubac, Typsa

a loyal ally along Guatemala’s

and Megaproductos, which have

development within the construction

contributed to increase efficiency

sector. Its 70th anniversary is an ideal

and, as a result, deliver a wholesome

time to emphasize the company’s

offer contributing to the company’s

accomplishments resulting from

positioning as a leading supplier

expanding its operations, contributing

for a complete line of solutions for

to growth in all of Central America

construction.

and the Caribbean, supporting the livelihoods of more than 1,800

is certified under international

collaborators.

standards guaranteeing every

Its management’s endeavors and

product’s quality. And, to reaffirm a

vision have, throughout the years,

commitment to transparency all along

kept Corporación AG experiencing

its business model, the company

constant growth and expansion, from

has reinforced its zero tolerance

construction materials distribution

policy toward bribery, by re-certifying

to becoming a full-fledged leading

under the ISO 37001:2016 standard,

producer and marketer of steel

ensuring compliance and maintenance

products in the territory through a

of the Anti-bribe Management System

wide network, with both own and

up until 2026.

outsourced outlets, besides relying

Juan Jacobo Alvarado, Chief Supply

on SIDEGUA, one of Latin America’s

Chain Officer, who has worked for

cutting-edge steel plants.

Corporación for more than 20 years,

In order to sustain this leadership, during recent years AG acquired

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It must be noted that the corporation

August 2023

commented that the fore-mentioned attributes have resulted in boasting


Construction

THROUGH RODRIGO GABRIEL’S -OUR CEOVISION, THE SUPPLY CHAIN DEPARTMENT WAS CREATED WITH THE PURPOSE OF ACCOMPLISHING A COMPETITIVE ADVANTAGE AND FOCUS

- Juan Jacobo Alvarado, CSCO for Corporación AG

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Corporación AG

Estrategia de Sostenibilidad

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August 2023


Construction

one of the broadest, top-quality

nearshoring suppliers

portfolios in the steel industry in

• Increase in Order fulfillment

Central America.

• Growth in distribution network

THE IMPACT OF THE SUPPLY CHAIN

• Increase in production

During seven decades, Corporación

output

AG has evolved its organizational

• Optimization of sales

structure and upgraded its

and operations planning

management systems, thus providing

• Deployment and

support to the enterprise’s growth.

improvement

In 2016, this evolution carried into

of Net Promoter Score

the deployment of a structure from

• Increase in product

which new c-level positions arised

portfolio

to bring prominence to the business

• Centralization of

core, along with other positions

production operations

contributing to its development. From then on, Corporación AG completed

“Through Rodrigo Gabriel’s -our CEO-

the following achievements, resulting

vision, the Supply Chain Department

in a positive impact on its supply

was created with the purpose

chain and reaching stocking and

of accomplishing a competitive

sales records:

advantage and focus,” Alvarado

• Increase in global

added, since this department leads in

suppliers network

a transparent and close way most of

• Accomplishing balance

internal stocking, production, demand

between long and

and logistics, with the purpose of

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Corporación AG

delivering better results in costs,

and Honduras, operating with

working capital and service.

new technologies for inventory

Being an important part of its

management, as well as integrating

endeavors and sustainability plan,

forecasting and other processes.

AG deems its relationships with

New management methodology

suppliers and clientele as very

such as Lean Manufacturing and

important, going beyond a simple

Scaling Up, among others, have

commerce transaction, since

contributed to improve operations and

working hand in hand with them

create management manuals. Also,

results in offering better products

the optimization of processes such

and services. Resources such as

as Sales and Operations Planning,

satisfaction surveys and loyalty

Strategic Procurement, Order to

programs like “Recycling Agents”

Delivery, Lead to Cash, Go to Market

and “Transportation Agents” have

and Route to Market have been

contributed to upgrade different

reviewed along with some of the top

aspects of the stocking cycle.

consulting firms, worldwide.

TRANSFORMATIVE VISION

AN ENTERPRISE READY FOR BIG-TIME CHALLENGES

To balance its value chain and take

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on challenges such as the setbacks

As much as there is potential in

in stocking and logistics as a result

a territory host to a market of

of COVID-19, AG has taken different

approx. 50 million inhabitants, there

measures, such as an increase in its

are also historical challenges in

shipping capability by incorporating

Central American countries: lack of

new distribution centers in Guatemala

infrastructure in land roads, scarce

August 2023


Construction

WHEN EXPERIENCING ACCELERATED GROWTH, ONE OF THE BIGGEST CHALLENGES IS FINDING WORK METHODS WHICH ALLOW THE INCORPORATION OF EFFECTIVE AND EFFICIENT CAPABILITIES - Juan Jacobo Alvarado, CSCO for Corporación AG

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Primetals Technologies Mexico with Workshops located on the Metropolitan area of Nuevo Leon since 1994, nearby the USA border, is a service and product company for the siderurgical industry value of chain, supported by centers of competence worldwide. Our portfolio of solutions and services: ● Workshop inside customer facility dedicated to the off-line maintenance of a 2 Strand Thin Slab Caster that produces more than two million tons per year. ● Alignment and measurement specialized services for Casters and Mills. ● Fabrication and redesign of components and equipment for Steel Furnaces and Casters (EAF – QEAF – LF – RH – VD – CCM) ● Caster Monitoring and Assessment Process Services for operation parameters and better maintenance practices. ● Refurbishment for Mills equipment such as: Pinions, rolls, chocks, mandrils and similars. ● Innovative online platform created by Primetals Technologies to bring together a wide range of E-Services in one place, where steel producers can order spare parts online and centralize document management. primetals.com Bid Project Manager miguel.escamilla@primetals.com

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regulation and enforcement,

Rica ends up being almost 50% more

low-quality custom processes

expensive than sea freight between

and few professional transportation

Guatemala and China, which makes

options. Such factors affect delivery

it a very sensitive matter.

times, besides increasing costs for

Corporación AG has overcome

every order.

such obstacles through innovation

Jacobo mentioned another factor

in conveyance, recurring to close-

recently affecting logistics: drivers

coupled trailers, cross-docking and

migrating to the U.S., which adds

creating flexible fees that do not

up to costs, making them a hefty

increase costs. Such strategies have

expense in Central America, as land

been paired with training, partnerships

freight between Guatemala and Costa

with security companies, real-time

August 2023


surveillance and contributing to the

of effective and efficient capabilities

creation of a compliance and quality

and skills able to maintain excellence

culture that has enabled the company

and quality in processes, products

to keep shipping in an uninterrupted

and individuals.”

manner, maintaining leadership within the business. On a different matter, 2023 has seen

THE LARGEST METAL RECYCLER Highlighting the different areas of

the steel industry, globally, facing

Corporación AG, it’s important to

different challenges which came up in

mention that the company is the

recent years: from production being

largest metal recycling company in

affected by the conflict between

Guatemala and Central America,

Russia and Ukraine to changes in the

basing its production in a circular

global supply chain due to COVID-19

economy model, adding up to care

restrictions, which seems to lead into

for the environment and a responsible

a search for closer, diversified sources. residue management. Major challenges imply that Corporación AG should stabilize regularity in order delivery and service, avoid bureaucratic paperwork, simplify processes and increase agility. The executive finalized by pointing out that, “when experiencing accelerated growth, one of the biggest challenges is finding new work methods which allow the incorporation


Corporación AG

More than 50% of the corporation’s production comes from recycled

an eco-label boasting the Sustainable

steel, and it should be noted that

Commodity seal from the The

the company relies on a complete

Guatemalan Cleaner Production

recyclers and supplies network

Center (CGP+L).

in Central and South America and the U.S. Grade 60 and Grade 80 rebar are

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which allowed the development of

These badges enable clients to possibly obtain certifications such as EDGE, LEED and “Casa

produced from 100 percent recycled

Guatemala”, accruing points due

material, verified by the Guatemala

to the construction material, being

Green Building Council (GGBC),

steel in this case.

August 2023


Construction

FOUNDED: 1953 INDUSTRY: Construction NUMBER OF EMPLOYEES: +1800 CONTACT: jalvarado@corporacionag.com corporacionag.com/node

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