Partners:
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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