Research On Raw Material Procurement Management Mode

Production companies must constantly improve their efficiency to remain competitive and to ensure their survival in the fierce marketplace. In recent years, there have been many logistical improvements to make equipment more efficient. Currently, the steel and iron industry is rapidly developing. The logistics management of the steel and iron industry has been receiving an increasing amount of attention. In particular, there have been many improvements in the supply logistics of raw material procurement management. The traditional method of procuring raw materials is no longer effective. Innovation is needed in the supply chain to improve the procurement management model. Doing so will give the industry many advantages to increase its overall competitiveness. Also, procurement management is related to factory operations such as product structure, production procedure, and location. So it's necessary to research on CIS raw material procurement management mode, which has certain iron and steel production scale, highly requires continuous raw material supply and mainly follows traditional procurement management mode in hinterland.The present work uses a collection of theories about the purchase management of the supply chain to analyze existing problems in the raw material purchasing management model of CIS. This study includes some proposed policies and measures to reduce costs and improve the efficiency of raw material purchasing management for the new CIS, after environmentally conscious relocation.This study shows that the creation of the CIS raw material purchasing management model should strengthen the understanding of procurement management on a strategic level in order to improve control of resources. Adjusting the organizational structure of procurement strategies will result in centralization, specialization, and flat management. Furthermore, appropriate procurement strategies must be established to strengthen procurement decision-making and program management. Also,many professional staff must be trained to work in the area of distribution and purchase management. Appropriate strategies would result in the achievement of JIT procurement. To improve efficiency and reduce cost, it is necessary to strengthen the management of inventory information and vigorously implement "zero inventory". The spirit of the "win-win" attitude in the new situation should apply to establishing strategic partnerships with suppliers and to improve vendor management systems. Evaluating the procurement performance will result in continuous improvement. As a result, the procurement of enterprises can truly become the "third profit source". A part of these research results have been used successfully in the industry.