Supporting customers in hard times
Making sure that customers are delivered the right material at the right time. This is the mission of our customer teams. But sometimes it can be much more than that… and this is where ArcelorMittal makes the difference.
Newly marketed vehicles facing strong demand, considerable fluctuations of the end market, orders with mistakes, quality issues with products and services at other steelmakers’… These are some of the situations that our customers frequently face. During the second half of 2009, ArcelorMittal was able to help PSA Peugeot Citroën to deal with many of them, sometimes by finding solutions to make up for our competitors’ failings.
“We could count on ArcelorMittal to support us when Sochaux (PSA Peugeot Citroën historical site in France) asked us to make the necessary efforts to guarantee the production of the 3008 and 5008 models that were facing an increasing demand,” explains Fadi Jabban, Flat Products Purchasing Manager Body in White at PSA Peugeot Citroën.
“Quite often we would receive urgent requests on a Friday around 4 pm,” said Nicolas Rouet, ArcelorMittal’s Global Account Manager for PSA Peugeot Citroën. “Friday evening emergencies have even become a joke between the PSA Peugeot Citroën purchasing service and our team. We were able to achieve a very high level of reactivity thanks to the strong commitment of all ArcelorMittal services: commercial, production, logistics, support for validating urgent orders in IT systems, Distribution Solutions…”
These efforts were rewarded on March 19, 2010, when ArcelorMittal received the “Logistics award” from PSA Peugeot Citroën (picture).
Author: Vincent Daenen, Automotive and Global Customers, Communications
2 comments
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May 7th, 2010 by Lasea
Hallo,
We are constantly reminded that we must take care of our customers, and that our customers are one of our key focus areas. However, I then wonder how it can be that we as ArcelorMittal South Africa, manages to make a mistake and pass the cost of that mistake onto our customers directly, without blinking an eye.
I am referrring to the situation that the contract with Kumba (Sishen Iron Ore company) where we received iron ore at a cost +3% basis, is now under dispute because WE (ArcelorMittal South AFrica) did not convert our mining license to the new order, clearly a mistake made by my company, not my customers. We have now announced a R600/t levy to be imposed on our customers. And this for a mistake we have made? And this to a background where our South African steel prices have been consistently higher compared to other countries and even other sites within the ArcelorMittal group.
I feel very ashamed at this stage to call myself an employee of ArcelorMittal South Africa and I don’t think we are taking care of our customers. I am also not the only employee that feels this way.
I hope you can give me a suitable explaination of how we as a company can justify this.
Regards,
Lasea
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May 7th, 2010 by Web TV team
Dear Lasea,
Thank you for your message. We’ve shared your concern with our CR colleagues in South Africa and here is what they answer:
“The surcharge is based on the variance that Kumba is now requesting on the iron ore price. Please remember that this is a temporary situation until the arbitration concludes. If we win the arbitration, customers will be compensated. If we lose, the money will of course be for Kumba’s benefit. It is normal, when something out of the ordinary occurs, to implement some form of an additional charge or surcharge.
Think of a train derailment or even a force majeure situation when an agreement can (for some or other reason) not be concluded to the benefit of both parties. This situation, you will agree, is something unexpected that has resulted in the need to cover the additional cost.
The charge over and above the cost plus 3% is extremely onerous for example: We have received the invoice for March iron ore deliveries, and we used approximately 350,000 tons of iron ore for March, and the difference is about $100/ton. These are significant amounts of money, and without the surcharge, does provide a serious risk to our business in South Africa.”
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