Research On Material Procurement And Inventory Management Of Shouqin Longhui Company

With the deeply spread of Global Financial Crises, in order to survive and evendevelop further, it becomes more and more difficult for iron and steel enterprise to keepobvious advantages in market competition. Reducing costs and increasing benefits and tapthe potentialities are the normal development of the key work of iron and steel enterprise,but the most important work is material procurement and inventory management. In orderto succeed in the fierce market competition, iron and steel enterprise have to understand itsown situation, make conduct management plan and adopt scientific concept with thecompany’s current situation. Using Shouqin Longhui Company as object of research usesStrategic Purchasing and Supply Chain Management strategy to precede the improvementand optimization on material procurement and inventory management, by analyzing theobjective environment for the present of material procurement and inventory managementon the basis of purchasing management theory.Firstly, it introduces the background and research purposes of material procurementand inventory management, elaborates the domestic and foreign research present situationon the basis of reading the literatures home and abroad.Secondly, it introduces the relevant theories of purchasing management and StrategicPurchasing and Supply Chain Management, which provides theoretical methodology forfollowing analysis, and emphasizes on background, definition and characters of VMI.Thirdly, it provides introduction about organization structure of the company andproduction characteristic, analyzes the objective environment for the present of materialprocurement and inventory management.Fourthly, it constructs VMI for Shouqin Longhui Company and proposes anoptimized scheme, with expatiating design principle and procedure of VMI.Finally, it comprehensively elaborates on how to implementing of VMI, Includingestablishment related mechanism and risk prevention mechanism.