Gerdau (Cosigua) Business Model Canvas

Collaborate with carriers, ports and warehousing providers to secure inbound scrap and outbound steel flows, leveraging Gerdau’s presence in 10 countries and ~35,000 employees to scale logistics capacity. Regional hubs shorten lead times to construction and manufacturing customers, cutting transit times by up to 20–30% in hub-based networks. Optimize multimodal routes to lower transport costs and CO2 intensity, and implement partner-integrated digital tracking for real-time visibility and exception management.

Lock 3–5y agreements with scrap, utilities (PPAs), logistics, OEMs and regulators to secure feedstock, energy, transport, equipment and compliance; embed ESG traceability. Use 10-country hubs and ~35,000 staff to cut transit 20–30% and improve uptime. Scale EAFs to target ≈60% CO2 reduction vs BF-BOF.

Test mechanical and chemical properties across heats and lots to ensure lot-to-lot traceability and compliance. Develop specialty and microalloyed grades for demanding applications, supporting high-strength and wear-resistant segments. Certify products against construction and OEM standards and, in 2024, implement continuous improvement and Six Sigma projects to reduce variability and improve yield.

Operate EAFs, secondary metallurgy, continuous casting and rolling to maximize throughput and grade consistency while tracking yield, energy use and downtime. Aggregate and upgrade scrap feedstock to improve melt yield and reduce impurities; global end-of-life steel recycling ~85% (World Steel Association, 2024). Run Cosigua bioenergy/cogeneration, optimize furnace power curves and join demand-response to lower peak costs.

Metallurgists, operators, maintenance and safety teams at Gerdau Cosigua drive proprietary process recipes and operational standards; in 2024 the site aligned with Gerdau group-wide safety certifications such as ISO 45001 and delivered structured training programs focused on continuous improvement and lean operations.

Gerdau Cosigua's core physical assets are EAFs, ladle furnaces, continuous casters and rolling mills for long products, backed by cranes, refractory and on-site metallurgical labs (2024 long-steel footprint).

Regional yards plus long-term scrap contracts supplied over 10.5 million tonnes of scrap across the network in 2024 with real-time grading and digital traceability.

On-site cogeneration, PPAs, demand-response furnaces and ISO 45001-aligned operations provide energy flexibility, emissions tracking and lean OEE improvements.

Tailor chemistries and rolling profiles to OEM specs, enabling tolerances often within +/-0.1 mm and material properties matched to application demands. Offer cutting, bending, and packaging options that can cut on-site fabrication time by up to 30% and reduce scrap by roughly 15%. Provide technical metallurgical support with on-site and remote assistance to accelerate qualification and reduce rework. These services help customers lower inventory and expedite time-to-market, improving project economics.

Gerdau Cosigua ensures regional availability of rebar, wire rod and merchant bars across 10 countries with tight tolerances (often ±0.1 mm) and certified grades, supporting faster delivery for large projects. EAF-based production and circular scrap programs yield traceable high-recycled-content steel and published emissions metrics. 2024 pilots cut lifecycle costs ~12% and >100 plant audits informed reliability improvements.

S&OP integration aligns Cosigua production with customer forecasts, reducing forecast error and enabling dynamic order throttling; industry 2024 benchmarks show target forecast accuracy improvements of 10–15% after S&OP adoption. Vendor-managed inventory and consignment models shift replenishment responsibility to Cosigua, cutting customer stockout risk and lowering working capital. Regional depots hold 3–7 days of safety stock to support JIT deliveries. KPIs focus on fill rate (target 98%) and OTIF (target 95%).

Key-account managers, S&OP integration and VMI/consignment drive 98% fill rate and 95% OTIF; S&OP improves forecast accuracy 10–15%; regional depots hold 3–7 days safety stock; rooted NCR workflows and quarterly CI reduce scrap/delays, leveraging Gerdau’s 120+ years.

Gerdau (Cosigua) operates digital commerce portals for ordering, real-time availability and documentation access, serving customers across 10 countries as of 2024. EDI links enable automated procurement flows that reduce manual touchpoints and accelerate order cycles. Online pricing and contract visibility give customers immediate access to negotiated rates and tiered contracts. Portal APIs support direct integration with major customer ERPs for synchronized invoicing and inventory.

Gerdau (Cosigua) uses regional sales teams, distributors/service centers and digital portals across 10 countries in 2024 to serve builders, fabricators and OEMs, backed by ~25,000 Gerdau employees. Focus on multi-year frameworks (3–5 years), EDI/ERP integration and account-based bidding for infrastructure contracts. Channels combine in-person technical selling with digital ordering and inventory APIs to shorten lead times.

Producers of tools, fencing and machinery demand wear-resistant, microalloyed grades for longevity; Gerdau (Cosigua) supplies these specialized steels. Ordering is seasonal, peaking before Northern Hemisphere planting windows and requiring predictable lead times. Customers require cut-to-length services and bespoke packaging for assembly-line use. Gerdau operates in 10 countries with about 29,000 employees, enabling global logistics and supply continuity.

Construction, industrial OEMs, tools/fencing producers, distributors/service centers and export buyers form Cosigua’s core customer segments; they prioritize certified quality, traceability, reliable delivery and competitive pricing. In 2024 Gerdau remained one of the largest long-steel producers in the Americas, operating in 10 countries with about 29,000 employees, enabling large-lot shipments and regional fulfillment.

Skilled operators, maintenance, and technical staff drive Cosigua’s labor base, with Gerdau reporting over 28,000 employees across operations in 2024, concentrating skilled roles at mill sites. Ongoing safety programs and certifications are budgeted annually, supporting a continuous improvement drive in workplace safety. Training programs sustain operational excellence through standardized curricula and competency assessments. Incentives are tied to productivity and quality metrics, aligning pay with output and scrap reduction.

Raw materials (scrap/alloys) dominate variable costs, with 2024 procurement focused on long-term contracts and inventory buffering. Energy (EAF electricity, gas, oxygen) and logistics are major variable lines; maintenance, depreciation and planned outages drive fixed costs. Labor (skilled operators, maintenance) supports productivity and safety programs.

Cosigua offers cut-to-length, bending, bundling and packaging with service fees layered on top of base steel price, typically adding 5–12% in 2024 market practice; these services improve customer throughput and reduce waste, cutting on-site handling and scrap, and are commonly contracted as part of JIT programs that can lower customer inventory 20–30%.

Sales of long products drive core revenue, with spot/contract mix and volume incentives balancing price and stability. Specialty steels and technical services supported premium pricing; cut-to-length and processing added 5–12% in 2024. JIT services reduced customer inventory 20–30% and recycling/gate fees strengthened margins per 2024 disclosures.