| At present, the steel industry is regarded as the "sunset industry" in foreign countries and co nfronted with the tough situation in China with a number of problems such as production surplus, low-level and repetitive construction and disorder price competitions. Particularly, from the per spective of industry chain(steel manufacturing enterprises—circulation/deep processing enterpri ses—enduser), those enterprises of the circulation part are not only facing fierce competitions in the market but the rigorous condition of being oppressed by both ends of the industry chain. In th e steel industry, costs of raw materials are remarkably higher than those of other industries. Henc e, only the enterprises with reasonable inventory management and control and low purchasing co sts may dominate the market. With the homogenization of industry competitions, it is better to cu t the nontaxable purchasing costs than raising the sales prices. By taking the DW Company for example, this article explored relevant principles of purchasing and inventory control and put forward a control method according to the present industrial situati on and the corporate conditions through analysis on the development and changes of inventory m anagement of the steel industry.Looking into the cases which reflected major problems of the industry and giving a brief int roduction to the DW Company and the industry background, the author of this article analyzed th e corporate conditions and the corresponding causes. In combination with the purchasing and sub scribing method and the scientific demand forecasting, the author put forward an idea of active i nventory control in replacement of the negative inventory management so as to reduce inventory of raw materials and costs of operation, which, on the other hand, can raise the rate of fund opera tion and customers’ satisfaction level.It is expected that this article may provide some insights for similar enterprises in the circul ation part of the industry chain. |
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