Hot Spots: The Chain Reaction Of Iron Ore Pricing Agreement The Early Quarter – Steel, Iron And

Shanghai Yi Shang precision screw (hereinafter referred to Masuhisa screw) head Shang Jinbo purchasing additional two days of consecutive classes, he will save his responsibility involves Steel Annual price agreement, the cost breakdown of open sourcing components, mainly the upper reaches of suppliers Steel Procurement prices and processing costs separately to the volatility of steel prices at any time to determine the purchase price.

Shangjin Bo said that the price changes in order to do this work, he has been in a few weeks ago, semi-finished products and several screws suppliers have negotiated, designed to require suppliers to the procurement cost analysis forms part of the cost structure of each fill out one by one, from steel mills to buy raw material and how much a ton, the process of manufacturing costs is how much.

“The most critical step is the first segment out of the purchase price of steel, in order to adapt to the market price of steel quarter.” Shang Jinbo on the “Daily Economic News” reporter says he was responsible for supplier zero Baosteel steel parts from, and also from other domestic steel mills, “but Po Steel Ore-quarter benchmark pricing agreement soon affect other domestic steel pricing. ” Determined under the market price

delivery Shangjin Bo told the “Daily Economic News” reporter, screw steel procurement costs account for 70% of the total cost. To avoid fluctuations in steel prices led to duplication of screw machining parts price negotiations and procurement costs affect the delivery, after their negotiations with major customers have reached full agreement, both companies benefit still screw products sold to customers and suppliers pricing model is also sold benefits as the company still screw, manufacturing costs of major raw materials for steel products other than the cost of an established protocol to determine prices, steel prices to determine the purchase price of the market.

With this pricing basis, the benefits of the company’s procurement staff screw still follow the same pricing, and flexible screw semi-finished products suppliers to determine changes in prices, interest still screw the company no longer worry about clients not agreed to bring the cost of procurement prices rise, the profits resulting from reduced state.

“To determine such a pricing model is compelling.” Shangjin Bo said, seemingly a simple mode of operation, behind the need for large amounts of data updates, such as each to make a product needs in accordance with established formulas, will screw into the weight of steel required in re-calculation formula, and then the purchase price of components manually input into the manufacturing resources Management Systems which generate a purchase order to the supplier, “behind every order to be labeled a dozen sheets of information required for the formula, including the purchase price list, authoritative departments of the steel market price quotes, etc., too many manual repeat the operation so that a substantial decline in the efficiency of procurement. “

Shangjin Bo said that this mode of operation for non-volume production of precision screw products more applicable, if the Car Components such as large quantities of product change price, this “mode of operation not work.”

Make up the difference should be by way of

“Daily Economic News” reporter from the other bars a manufacturing automobile chassis parts companies have found that their companies need to purchase the same product every month thousands of pieces of steel components involved in hundreds of thousands per month. “Today, steel prices change several times a month, if each batch of product orders in the SAP system, which should be updated, please do the 10 staff are also difficult to deal with this matter was over.” Of the company’s procurement Project Teacher Su Hua told the “Daily Economic News” reporter, in order to make the price change is more easily operate the work, they take with Baosteel on foreign iron ore suppliers make up the difference the same measures to reduce the number of manual changes to SAP systems operation work.

According to Su Hua Jieshao, his company in response to fluctuations in steel prices too frequent situation, but also to reduce the purchase price of each order of time and effort to repeat the negotiations, they make up the difference to reach a supplier agreement, from manufacturing resource management system, under which purchase orders to suppliers is still the original price, will the price of raw materials corresponding to the purchase price or out of more than base price of raw materials, according to a monthly listing the corresponding post a list of the corresponding procurement zero difference between the compensation components. SABUNG AYAM