Research On Supply Chain Management Of Iron And Steel Scraps

During 2014,the price of steel was dropping gradually because the demand of steel decreased as well.Under the background of this phenomenon,the economic benefits of Steel enterprises is still facing a severe situation,although the program of energy-saving and mission reduction has gotten some progress and the economic benefit has been improved a little.In order to improve core-competitive ability,steel firms adopt “Reduction Cost for Profit” program to reduce the cost of production,purchase,inventory,sale respectively.And the cost of purchase and raw materials occupies large proportion of the total cost in steel enterprises.Updating the purchase model in supply chain is one necessary and important measure for firms to reduce purchase cost and increase economic benefits.This paper is based on theory of Supply Chain Management(SCM),working experience of author and collected data in NS firm.By analyzing the purchase model in large steel firm such as NS Company,this paper drawn some meaningful conclusions based on supply chain management theory for peer firms.This article introduces theory of supply chain management and purchase strategy firstly and explains the differences between traditional purchase model and purchase model in supply chain environment.According to the works which have been done first,then this paper sets up theoretical foundation of optimization for the research in NS Company.The related problems and causes have been summarized in this paper.According to these problems,this article uses SCM theory to optimize the current purchase model in NS.This research majors in MIS of purchase,purchase and assortment strategy,supplier management and logistics with inventory management.From these 4 aspects,related suggestions will been put forward.