The Study To Internal Controls Of Raw Materials Logistics Process

With the increasing acceleration of global economic and capital market integration process, enterprises are facing more and more complex market environment. Especially after entering 21st century, economy globalization, rapid technological advances and the increasing extreme competition have brought more business opportunities and risks as well as the booming of financial corruption. Internal control, as the key step of company management and important measure of business management, has become the access and passport for enterprise entering capital market. Thus, it plays a vital role for enterprise to grow stronger. At present, the internal control has become the hotpot of government legislation of various nations, academic research and the practical reform, especially for large manufacturing enterprises because they have complicated business scope with more complex internal control.It is much more meaningful to carry out research in internal control for such enterprises. For the large enterprise, the material cost will account for 60% of the total capital basically, for some others even more than 70% to 80%. Therefore, material cost control has become a key issue of the large manufacturing enterprise.For this paper, the research is based on the internal control of raw material logistics of the large manufacturing enterprise. The relationship between internal control and process management has been discussed on basis of the existing research result. The internal control, with the business process system as the carrier and being implemented in business steps, has become indispensable management base for a healthy enterprise development. Take the raw material logistics of CSR Sifang Locomotive & Rolling Stock Co.,Ltd as an example, the process of material logistics will be explained with combination of the current advanced management theory and logistics management technology, including definition of material demand, material procurement, WMS and payment process.The key control points of each process and the current existing problem control measures will be researched to show the internal control status of China's large manufacturing enterprise in view of the detailed business level.And the internal control of material logistics under the project management mode and business process is also discussed on this basis.The process control is raised and the system of post responsibility under process management is established to enhance internal control of raw material logistics and to guide the practice.