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7. Supply chains that our customers trust

As a leading producer of steel, our operations depend upon a vast supply chain. Our supply chain reflects who we are and is integral to the creation of our products. Furthermore, as a supplier to many industries ourselves, we recognize the importance of upholding strong supplier relationships and standards. As a vertically integrated business, our customers are dependent on the reliability of our internal supply chain to ensure they can meet their sustainability goals. 

Why is this important to us?

We take responsibility for actively managing our supply chain. By incorporating social, ethical and environmental considerations into our sourcing decisions, we are positively contributing to a responsible supply chain that benefits the sustainability of our company and the planet. 

The commercial imperative

What kind of challenges do we face?

We expect our suppliers to adhere to the same high standards of social, ethical and environmental performance that we require of ourselves. This includes meeting governmental supply chain regulations. Not only do we require this level of transparency ourselves, but our customers are also requesting higher levels of supply chain reporting and transparency. Due to the nature of our industry, we face the added challenge of drawing from a traditionally homogenous supplier base.   

What do we need to do?

We created a code for responsible sourcing in 2010 and continue to implement its principles into the standard purchasing form used with our suppliers. The USA procurement and supply chain team adheres to all global sourcing rules and regulations required by ArcelorMittal Group supply chain practices. We will continue to thoroughly vet new suppliers and strengthen our current supplier relationships. We also have the opportunity to further grow our supplier diversity program to incorporate more qualified and certified Minority and Women Business Enterprises (M&WBEs) into our procurement process. 

What is the potential to create value?

A responsible supply chain is more efficient, competitive and resilient. Our policies help us to reduce risk and ensure that we are following internal and external policies and regulations. By developing and expanding business relationships with M&WBEs, we are supporting the diversification of the industry through both financial support and expertise. This approach also creates a more diverse supplier base, which fosters increased competition and heightens performance.

2015 Highlights


OUR COMMITMENTS OUR PROGRESS NEXT STEPS

Supplier diversity

Continue to accelerate our efforts in identifying opportunities in our supply chain where it is possible to enable qualified and certified Minority and Women Business Enterprises to participate in our procurement process

Spent $201 million on procurement with Minority and Women Business Enterprises

Continue to expand upon our efforts to identify opportunities in our supply chain where it is possible to enable qualified and certified Minority and Women Business Enterprises to participate in our procurement process

Case study: Diverse suppliers

Diversity in supply chain fuels innovation, creates value
To operate efficiently, effectively and responsibly, ArcelorMittal relies on many other companies throughout the supply chain. Our success is directly linked to our suppliers’ ability to provide the goods and services we need to run our mills and produce a quality product for our customers.

Close the case study

To operate efficiently, effectively and responsibly, ArcelorMittal relies on many other companies throughout the supply chain. Our success is directly linked to our suppliers' ability to provide the goods and services we need to run our mills and produce a quality product for our customers.

Promoting diversity in our base of suppliers not only generates economic opportunities in the communities where we operate, but it also creates real value for our business.

Women-owned enterprise Bulk Equipment Corp. is one example of how diverse supplier partnerships are helping ArcelorMittal be more sustainable. The company manages a large fleet of heavy industrial equipment – everything from the wheel loaders and haul trucks that transport raw materials to our furnaces to the magnetic stackers that safely move slabs and coils of steel.

Half a century ago, Bulk Equipment Corp. had a part in building northwest Indiana's steel industry, doing much of the "dirt work" to establish what is today our Burns Harbor facility.

Led by four female owners since 1994, the Indiana-based and nationally certified women-owned-enterprise has successfully adapted to a changing local steel industry and steadily grown its partnership with ArcelorMittal over the past several years. In 2015, Bulk Equipment Corp. did over $20 million in business with ArcelorMittal, managing more than 400 pieces of equipment working at any time in five of our facilities throughout the U.S.

The equipment we rent from Bulk Equipment Corp. is critical to our mining and steelmaking operations. But the new and innovative business solutions the company has brought to ArcelorMittal are equally important.

For example, in our industry, idling equipment costs money and negatively impacts productivity. Working in partnership with ArcelorMittal and other suppliers, Bulk Equipment Corp. has been a leader in introducing cost-saving tools such as GPS tracking, anti-idling systems and real-time productivity monitoring for all its vehicles.

Specifically, they developed a system to identify when equipment is running but not being productive, and they installed automatic shut-down technology on every vehicle in the fleet. At any moment, ArcelorMittal personnel can access real-time reporting to see a rental’s location and its utilization. With this data at our fingertips, we are optimizing our fleet of rentals, saving money and reducing overall vehicle emissions.

“We grew up in the steel industry, and we are proud to play an important role in ArcelorMittal’s business today,” said Valerie Blumenfeld, president of Bulk Equipment Corp. “We view ourselves as more of a partner than a simple supplier. This approach, combined with being increasingly data-driven and transparent, has allowed us to collaborate with our customers in new ways to meet their goals while strengthening our business.”