Logistics System Optimistic Solutions Research Of Wuxi China Resource Steel-making Company

With the integration of the world economy, the movement of the world manufacturing center of China , iron and steel enterprises are facing greater opportunities and challenges, both domestic and foreign steel demand soared. Especially in mainland China, many foreign investments in the mainland have established production bases in domestic steel market. With this, capacity in domestic steel market has hugely increased. Large iron and steel enterprises pre-empt domestic production equipment and processes updated upgrading to expand their market share. Therefore, the small and medium iron and steel enterprises are facing greater challenges under the condition of limited input. Reducing production costs and enhancing competitiveness is becoming more and more urgent. Furthermore, the most effective ways to reduce the cost of production is optimizing logistics system and reducing logistics costs to lower the cost of production.China exist the following main problems in the logistics of iron and steel enterprises: widespread tendency to emphasize production but neglect logistics. Many logistics problems are mainly embodied in the poor logistics system. The logistics system input-output conversion efficiencies are low, including the following specific areas : First, large stock, slow revolving and high logistics costs. The raw material, products and finished stock of many steel enterprises are super-backlog, and the proportion of insurance reserve is too heavy in reserve quantity. This results in large enterprise inventory and lowers working capital of enterprises. As China's iron and steel enterprises have not fully accurate costing data on the cost of...