Digital Management Research On B Company’s Raw Materials Procurement Using Process Analysis

In recent years, organizations are paying more and more attention on procurement function and its research, the procurement function has been widely recognized as a value-added activity for companies following sales activity. In Iron and steel manufacturing industry, lean operations on a company’s raw materials procurement was highly interested and researched since bulk procurement of raw materials accounted for a great proportion of a company’s total purchasing amount, and raw materials cost occupied a big proportion on it’s products’ total cost.B company has built a whole process sales digital control system as a first step. It has now achieved a fully digital control process from contract sales orders to production and sales planning and optimization, after sales service. Compared with it, digital management of raw materials has a late start and was developed slowly and need to be optimized in many places although it is a front procedure of an iron and steel company’s production process. After financial crisis in2008, B Company’s decision-makers saw fluctuation in raw materials impacts significantly company’s production operation and benefit. A procurement system improved team was organized to rebuild procurement business procedure. And a series improvement advice was suggested, optimized procurement planning management, realized digital management on procurement planning was among the first portion to be improved.This article used process analysis and5W1H method to analyze procurement process based on current procurement management, planning, contract, supplier assignment analysis, it pointed out problems and proposed digital management idea and specific scheme based on ECRS materials procurement. The article set procurement planning making principle and logical relationship based on different characteristics on iron ore, coal, assistant materials, iron-alloy, scrap, pig iron, international vessel chatering, raw material allocation etc, and make relevant monthly(annually) procurement plan automatically by model and set manual interfere window. By setting relationship between procurement planning and resource assignment, procurement planning and contract prepare to realize an overall business management and oriented procurement planning as a first and an important step.