General Motors Co. is wising up to the auto company’s logistics challenges and making some more moves to stay competitive with Ford Motor Co.
The Wall Street Journal reported that in an effort to move its supply of metal stamped parts closer to its assembly plant in Arlington, Tex., GM will open a stamping plant right next door, shortening up that portion of the supply chain and saving the OEM some $40 million in shipping costs.
Certainly, the competition factor with its chief US rival Ford, not to mention foreign OEMs, is the primary driver to cut logistics costs, but getting more lean should help companies like GM survive in the global marketplace into the long term.
“We want to be ruthless about waste. Whether it is a part design, packaging or shipping, we don’t want it,” GM purchasing chief Grace Lieblein told the WSJ. “It may be a few thousand save here or few million saved there but it adds up.”
Today’s Steel and Raw Materials Prices
Closing higher on Monday, October 14, Chinese slab rose 0.3 percent to finish as the day’s biggest mover. The price of Chinese HRC saw little movement. The price of Chinese coking coal saw essentially no change for the fifth day in a row. The price of iron ore 58% fines from India hit a high price above $137 per dry metric ton.
Also on the LME, the steel billet cash price held steady around $225.00 per metric ton. On the LME, the 3-month price of steel billet saw little change in its price yesterday at $250.00 per metric ton.
The 3-month price of the US HRC futures contract saw little movement yesterday at $635.00 per short ton. The US HRC futures contract spot price saw little movement yesterday, closing out around $643.00 per short ton.