Research On China’s Iron And Steel Enterprises In Supply Chain Logistics Cost Management

Because of the slowdown in the growth rate of entity economy and China’s steel industryovercapacity, the iron and steel enterprises are facing an increasingly competitivemarket.Logistics cost has been the concern of iron and steel enterprises as "the third profitsource". For iron and steel enterprises, supply chain logistics cost management has becomean effective means to pursue profit maximization, improve customer satisfaction, and enhancethe core competitiveness. So how to scientific analysis and evaluation of iron and steelenterprises logistics cost control performance has become more and more important, which isan important part of supply chain logistics cost control.Firstly, research status and methods of supply chain logistics cost at home and abroad areintroduced. Then the connotation of the supply chain cost management theories andperformance evaluation and development are introduced.Based on this, a logistics supplychain cost control system is established，and this can control the cost from two importantfactors which are time and operation. Then a supply chain cost management model and theseven steps of the implementation of supply chain logistics cost management are created.Then, on the basis of the steel supply chain logistics cost management system, indexsystem of four aspects are established which include the establishment of iron and steelenterprises raw materials procurement and logistics, plant logistics, product delivery logisticsand after-sales service logistics. Also evaluation indicators include4level indicators and16secondary indicators. And use catastrophe progression method to establish iron and steelenterprises supply chain logistics cost management performance evaluation system.Finally, take the country’s largest private steel enterprises-Sha Steel as an example,itoptimize its logistics supply chain process, establish a sand steel supply chain logistics costmanagement system.And then make a performance evaluation for Sha Steel to verify the rationality and validity of the index system and the feasibility of catastrophe progressionmethod in the iron and steel enterprises in supply chain logistics cost management.