Integrated steel mills still will have a lead-time problem. A Ford stamping plant currently cannot trigger timely production from integrated steelmakers because steel- production cycles run more than one month long. The stamping plant must pull from existing inventory. Meanwhile, flat-rolled minimills can have shorter lead times. Nucor's mill at Hickman, Ark., offers to ship its product two to three weeks after the order is placed, says Jerry Starnes, the plant's sales manager.
Customers can place an order months in advance, but two weeks is the minimum lead time.
A customer can also change an order's specifications up to one week before actual production. Faster data processing at GM General Motors still relies on market forecasts to order its steel. But the company wants to provide more timely forecasts to its stamping operations and steel suppliers. The steel mills will be able to see daily production levels rather than waiting one week. GM is struggling with the system right now, Burden says.