Alcoa 1999 Annual Report Download - page 22

2020 NEWS99
Net Gains
In addition to a highly developed worldwide intranet,
Alcoa’s business units and resource units increasingly use the
Internet for fast, cost-effective customer service, product
information, procurement, and many other functions. A few
current examples:
E-Purchasing. The Alcoa Mall is up and running as a stream-
lined business-to-business e-commerce system for procurement
of many goods and services bought by the company. It employs
the Ariba Operating Resource Management System, which
will provide a company-wide process to handle many low-value,
high-volume transactions. Proof-of-concept operations were
completed in January involving four locations, and a ramp-up of
additional locations and suppliers is scheduled to begin in May.
E-Closures. Alcoa CSI introduced a new e-commerce extranet
service in a successful test at the International Bottled Water
Association trade show in November. The new service will be
rolled out to key bottled water customers throughout the year.
Handling Inquiries. AlumaxBath.com is part of the marketing
program supporting Alcoa Extruded Products’ Bath Enclosure
business. This unit generates more than 50,000 inquiries per
year, which move electronically to local dealers. Customers and
dealers use the site to download instruction sheets and technical
data. Soon, consumers will be able to order small replacement
parts such as towel bar brackets and guides.
ProSpec®is a resource for building and remodeling
professionals, offered through Alcoahomes.com, the Web site
of Alcoa Building Products. Architects can go to the site for
specifications, color guides, and downloadable CAD drawings
for vinyl and metal exterior products.
Online Ordering. Kawneer Europe has launched an industry-
leading interactive Web site and extranet geared to customer
service and visibility in the European specifier market. The site
will provide online ordering using KaluCAD, Kawneer’s com-
puter-aided design and calculation system.
Person of the Year
Alcoa CEO Alain Belda was honored as “Person of the Year
1999” by the Brazilian-American Chamber of Commerce. The
organization recognizes individuals who have made significant
contributions to the promotion of trade, investment, and
business between the U.S. and Brazil. Past recipients include
Dr. Henry Kissinger, Henry Ford II, David Rockefeller and
former Alcoa Chairman Krome George.
High Growth Markets
Alcoa CSI increased market share in the high growth bottled
water and sport/fruit drink segments of the beverage market
in 1999. In the small size bottled water category – growing
by 20% per year – CSI’s popular push-pull Sport-Lok®closure
contributed to Alcoa’s growth. In the sport/fruit drink closure
segment, single-serve bottles are gaining popularity, glass is
converting to plastic, and convenient spout and sport type clo-
sures are in favor. Alcoa’s sales are growing based on product
quality and strong relationships with major customers.
Idled Capacity to Restart
On January 19, 2000 Alcoa announced it would restart some
200,000 mtpy of idled aluminum smelting capacity over the
course of the year. The move leaves approximately 250,000 mtpy
of Alcoa’s aluminum smelting capacity still idle. Potlines to be
restarted are located at smelters that are currently in production
in Australia and the United States. Due to continuing implemen-
tation of the Alcoa Production System, the additional output
will require minimal, if any, increase in staffing. Alumina for
the restarted capacity will be sourced by Alcoa World Alumina’s
supply network. “Alcoa is taking this action due to continued
strong demand in the U.S. and in other parts of the world,”
commented Alcoa President and CEO Alain Belda. He said the
company will continue to review market conditions under which
additional idle capacity can be returned to production. “Alcoa’s
ability to produce primary aluminum profitably, at lower costs,”
he added, “is significantly enhanced by the rapid deployment of
our Alcoa Production System.”
The Long Haul
Outstanding service is part and parcel of an outstanding product.
Two long-term success stories help to illustrate how that works in
the wheel business.
> Gene DiSano, executive vice president of Century Wheel and
Rim, Los Angeles, remembers a time when he sold Alcoa’s forged
aluminum wheels on a trial basis and even gave some away in an
effort to spark customer interest. His company has been distribut-
ing Alcoa truck wheels since they were first produced back in 1955.
Today, Century is AFP’s largest distributor. “Alcoa has been there to
help us at every turn,” says DiSano, whose team sells more than
30,000 Alcoa wheels each year.
> Over the years, Spitz Auto Parts of Irwin, Pa. has grown as
Alcoa’s wheel business has grown. Supplying Alcoa wheels and
other truck parts to small-trailer manufacturers across the country,
Spitz services 20 OEM accounts with 32 different Alcoa wheel
products as well as assembly and logistics support. Average delivery
time: 72 hours.