The Research Of Raw Materials Purchasing Management Of RF Co., Ltd

In the fiece market competition, reducing costs is the effective way to increase the competitiveness in produce markets. For the iron and steel enterprises, the procurement cost of raw material accounted for 50% of cost of its products. For this reason, it is crucial for enterprises to control the purchasing cost.Procurement has an important position and role in the supply chain, and has a direct and dramatic impact to the enterprise efficiently. Procurement management under supply chain environment has many characteristics such as sharing information bet ween enteprses and suppliers, informationization procurement, and procurement according to the order form etc. It provides the new mentality for the improvement of the traditional enterprise procurement.RuyangrunfengtegangCo.,Ltd(referred to hereafter as RF), as the private enterprise, has many drawbacks in the procurement management of raw materials, such as lack of sufficient attention from the height of strategy for the procurement, the lengthy and inefficient procurement processes, supplier management is not standardized, low degree of informationization, etc.. which is not suites to the serious excesscapacity of current iron and steel industry and the intense competition in the market. The paper reviewes the domestic and international research results of procurement and supply chain management theory, combining with the actual situation of RF, analyzes the market environment of RF's procurement management of raw materials, current situation and problems of procurement management, basing on this,brings up the corresponding improve ways and means, namely to establish the correct procurement strategy, to optimize procurement processes, to improve the internal control system of procurement processes, to re-construct procurement organization, to standalize the supplier management and to improve the information systems. Finally, raises the specific recommendations about how to apply the improved procurement management methods effectively, and provides a reference for the futher improvement of RF's procurement management of raw materials through prospecting of the procurement model in the future.The paper hopes to further enhance the efficiency of RF's procurement management of raw materials through the resesrching on the improvement of RF's procurement mansgement tactics under supply chain environment, gives play to the procurement of ensuring supply, reducing sosts, increasing effectiveness, and develops a cooperative win-win relationship with the supplier from the competitive contractual relationship in the past, enhances the comprehensive competitiveness under supply chain environment.