Study On Optimization Of Iron Ore Purchasing Management Of YT Company

As the rapid development of China’s economy, China needs more and more Iron and Steel Product (ISP). At present, China has become the largest country in ISP in the world. The output of ISP is almost one-half of the output of the world. So the demand for iron ore has become enormous. The distribution of the iron ore scattered in China and China’s iron ore is low in Fe, high in harmful impurities. Therefore, the production of iron ore in China can not meet the needs of the Iron and Steel Industry (ISI). The gap between demand and supply of iron ore in China can only relay on import. However, as the buyer in international market of iron ore trade, China is always on the weak side. In the face of such severely external business environment, it is important and imminent that finding a way from purchasing management to enhance competitiveness of company which survives in a fissure.YT company is a large-sized modern trade and business enterprise, mineral resource section is one of the company’s core business. The business scope mainly bases on metallurgical raw materials import, export and re-exports business such as iron ore. YT company is a professional agent of do iron ore business. In the process of iron ore purchasing, the issues, such as how to deal with the relationalship between YT company and its suppliers, how to widen its purchasing channel, how to control the cost of procurement and logistics and so forth, are the important contents of purchasing management, which have special meanings for YT company to enhance core competency. Firstly, the thesis starts from the theory of purchasing management.Secondly,takes the strengths,weaknesses,opportunities and threats of YT company on iron ore purchasing market as breakthrough points, analyses the current operation status of YT company, domestic and foreign companies which do iron ore business, and finds out and YT company’s mangament problems.Thirdly, puts forward some optimization plans through the above analysis, based on purchasing environment forecast, supplier selection and management, purchasing and logistics cost control, department coordination and employee motivation. Finally, gives some suggesions on procurement performance evaluation after using the optimization plans. The study on YT company would guide other companies which have the right to import iron ore to optimize purchasing management. The discussion of YT company’s purchasing management under such circumstances of iron ore market would give references to YT company’s executives and other domestic counterparts.