The Re-Engineering of Iron and Steel Enterprise Procurement Processes Based on the ABC Method

The material input and output dynamic process of iron and steel enterprises is made up of the procurement process, the production process and the sale process, and the procurement process running success or not will directly affect the enterprise final product pricing and the whole profit of the supply chain. This paper is based on the basic principle of ABC method, procedure, standard and analysis process. On the base of a detailed investigation of a certain iron and steel group logistics management process, I explore and find problems that exist in the current iron and steel enterprises procurement process. To solve these problems, the article uses ABC method to reconstruct the purchasing process of iron and steel enterprise, and chooses the performance evaluation method to evaluate the re-engineering of purchasing process, next step analyze the economic benefit of iron and steel enterprise. The results shows that the re-engineering of procurement process based on ABC method can improve the flexibility and robustness of the iron and steel enterprise, and ensure the timeliness and the quality of the supplying raw material, improve the ability of the enterprise internal work together. It also can significantly enhance the core competitiveness of the enterprise.