The Study On Iron&Steel Enterprise Iron Ore Supply Chain New Management Model

Currently, under the macro economic background of economic growth facing thenumerous downward pressure including the overcapacity of steel output, high cost ofsteel mills, the dilemma of iron and steel industry into the transformation andupgrading and constriction of the short-term economic needs and long-term potentialgrowth rate reduction in superposition of risky, this thesis discusses the iron oresupply chain management problems, adapts to the new situation of the iron ore supplychain management, to guide our iron and steel enterprises to reduce operating costs, toenhance it’s core competitiveness, to go through the crisis, to realize the successfultransformation and upgrading which is very urgent and very significant; Meanwhile,viewing of the new situation of the raw material supply chain management, it helps todeepen the theory of supply chain and to promote further study of supply chain.On the basis of countermeasure research, the latest supply chain managementtheory, strategic alliance theory, management and related theory, from general tospecific research, combining normative analysis and countermeasure research, itachieves conclusion according to the logic order of the progressive step by step. Itpoints out that the main problems of China’s iron and steel industry iron ore supply isshort of domestic supply, large external dependence, the fast fluctuation of import ironore prices and the bigger market risk. Because of the features of the iron ore supplychain–supply efficiency type and unbalance of resource, supply chain managementof iron&steel enterprise is necessary to determine the following goals: to reduce cost;to ensure that the balance of the supply and to reduce the volatility of each link ofsupply chain. Main problems of China’s steel enterprises on supply chain managementinclude: external supply network needs to be modified, transportation condition isserious, internal supply network badly in need of optimization, the inventorymanagement strategy to be improved and refined and warehouse urgently needs toimprove the management standard.On the analysis, it points out that China’s iron&steel is necessary to adoptinnovative integrated iron ore supply chain management model as follows:The first is the integration of core-supply network design by forming the iron&steel enterprises as the core structure of the “solar system”, and the external suppliersresponsible for iron ore procurement, transportation, storage, loading and unloading,processing, distribution and other specific business. The iron&steel enterprise itselffocuses on integration of resources, coordination, management and optimization ofinventory, makes the whole supply chain form an organic whole.The second is the integration of support-electronic information system whichshould implement two functions: information sharing platform and online orders. The last is integration mode of specific implementation strategy includingsuppliers, inventory, transportation, warehousing and so on. Regarding the inventorystrategy, it is a kind of integrated supply chain operation decision proxy mode by thesupplier for the end-users to make the main inventory decisions; Its particular waysincluding but not limited to dynamic tracking inventory and production situation ofthe end-user, supplier conduct full consideration to all factors such as the quantity,time of transport to make decisions. Based on the main innovation ideas, in order toimprove the competitiveness of green steel industry, the integration of internal andexternal resources and network, and to optimize the supply chain management as wellas to realize low cost operation, it is necessary for Qingdao Steel to Strengthenmanagement and innovation to apply to the current market environment of the newiron&steel enterprise iron ore raw material supply chain management mode.