Research On Procurement Management Optimization Of High Carbon Ferro-chrome In T Group

Procurement management of enterprises affects cost and thus profitability.In this paper,T group as the object of stainless steel production enterprises to optimize procurement management to improve profitability for enterprise diagnosis analysis.T group is a stainless steel smelting as core business groups of private enterprises,through the way of joint venture in the country set up a subsidiary,the company mainly adopts the model of the current domestic popular four smelting production 304 stainless steel,high carbon ferro-chrome as one of raw materials at present by the subsidiary independent procurement,procurement become the important factors that affect the cost of production.The group’s net profit margin fell to 0.75% in 2019 from 3.67% the previous year.The survey found that there is a large gap between T Group’s procurement costs and benchmark enterprises in the industry.T Group urgently needs to solve the problems of optimizing the procurement management mode,controlling the cost accurately and improving the market competitiveness.This article through semi-structured interviews to the T group headquarters and subsidiary procurement department staff to surveys the current high carbon ferro-chrome purchasing situation and existing problems,using the theory of centralized purchasing,bidding and purchasing,supply chain,and so on,analysis of the product characteristics and market status of high carbon ferro-chrome,referencing other commodities enterprises procurement mode,so that to put forward purchasing management optimization countermeasures and implementation plan for T group.The survey results show that the concentration degree of high-carbon ferro-chrome industry in China is relatively low,and Inner Mongolia has obvious production advantages.At present,the main obstacle of the group’s failure to adopt the centralized procurement model is the lack of a complete security system,which make it difficult to balance the interests of all parties involved in the supply chain;Lack of modern management means and effective methods which can make centralized procurement to produce scale effect.According to the existing problems,this paper puts forward optimization countermeasures from three levels:in strategy,in system and in operation.It is suggested to solve the problem of the lack of a complete system guarantee and balance the vital interests of all stakeholders in the supply chain by selecting and dispatching employees to form a decision-making committee,adopting bidding pricing model and multi-dimensional procurement management performance assessment and supervision.On this basis,by setting up two levels of warehouse,the combination of two procurement modes,the introduction of the fourth party logistics integrated logistics transportation,centralized procurement to produce scale effect;At the same time,the system information platform is established to connect various departments and enterprises involved in procurement,access third-party enterprise database,timely update suppliers and logistics related information through big data,improve the information level of procurement management through modern management means,and reduce costs to the maximum extent through precise control.Production of stainless steel and other commodities group enterprise most to have the same properties,hope this purchase way for other stainless steel group enterprise of high carbon ferro-chrome procurement management mode have the effect of reference,the stainless steel enterprises by controlling the raw material cost,improve the enterprise survival and competition ability,at the same time,also for our country to use stainless steel downstream enterprises with lower cost of raw materials and downstream enterprises in the international competitiveness.