Steel Supply Chain Management Solutions

The international financial crisis and the continuous increase in prices of raw materials and fuels have further increased the cost pressures of the iron and steel enterprises, lowered the logistics costs of enterprises, and demanded benefits from the “third profit source”, which has become the main way for enterprises to increase their competitiveness.

In order to ease the rising cost pressures and improve the profitability of enterprises, in the supply chain management of iron and steel companies, strict, detailed and practical management should be strengthened, comprehensive budget management should be promoted, and the circular economy should be promoted in order to provide powerful resources for improving the efficiency of resource utilization. The support will further determine the status of the "third profit source" of logistics system enterprises.

The guiding ideology and strategic objectives of iron and steel enterprises' logistics management The steel industry, as a resource-intensive industry, has a different logistics management system than other industries, and its operation mode and management philosophy are more in line with the logistics management under the supply chain management environment. We must establish the notion of logistics management not only as a service industry, but also as a profit-making job. Establishing a company logistics system is not only a service supporting system, but also a sunrise industry with unlimited potential, and it is operating as an industrial company, as a third profit of the company. source".

Under the current conditions of raw material supply and product market competition, reducing logistics costs will inevitably become a new bright spot in reducing the total cost of products and improving product competitiveness in the course of business development.

Therefore, iron and steel enterprises must strengthen logistics management, clear the "blood" of the company, and realize the five strategic objectives of iron and steel enterprise logistics management: first, reduce logistics costs and improve the market competitiveness of products; second, ensure normal production supply and product sales. Thirdly, by standardizing incoming logistics, in-plant logistics, and out-of-factory logistics, comprehensively increase the overall operating efficiency of the company's input and output, reduce inventory, and revitalize funds; Fourth, improve the company’s market through supply chain logistics management. The speed of response will enhance the market competitiveness of enterprises. Fifth, establish a good internal and external logistics image of the company.

The concept of supply chain of the solution of modern logistics supply chain management system is different from the traditional sales chain, it has already crossed the enterprise boundary.

From the perspective of establishing a new thinking of cooperative manufacturing or strategic partnership, from the beginning of the product lifeline to the product consumption market, consider the competitiveness of the product from the overall and overall perspective, so that the supply chain will rise from a competitive competitive tool to a This kind of management method system is the actual background put forward by supply chain management.

The goal of the steel industry's supply chain management system is to exchange and collaborate with the top steel mills, steel companies, logistics distribution systems, and lower-end customers and suppliers to realize the steel industry's entire system from steel mills to end-users. Unified process management to reduce operating costs, enhance work efficiency, and maximize profits.

Economic globalization has brought logistics supply chain management to an unprecedented height. The advantages of resources in various regions, decentralized production and sales. The socialization of logistics can increase the number of logistics resources that can be used by enterprises, which means that the allocation of resources is optimized and the logistics costs are saved.

Therefore, iron and steel enterprises should step out of the misunderstanding of heavy production and light logistics, attach importance to logistics supply chain management, update the concept of transport management ideas, and constantly improve the function of steel logistics so that logistics will truly become the third source of profit for iron and steel enterprises and create for steel companies. More economic benefits.