OREANDA-NEWS. September 26, 2011. In the construction of phase 2 project, Meishan Steel made careful calculation and strict budgeting to cut down the cost, improve the material supply efficiency and increase the use of direct supply material. Since this year, the direct supply amount of steel for capital construction accounts for 66% of total consumption, saving RMB 1.1 million warehousing cost, reported the press-centre of Baosteel.

Since Meishan Steel's phase 2 project is in the construction status of constructing while designing and supplying material, the schedule is tight, changes are many, requirements are urgent and materials are multifarious, bringing huge pressure for purchase work. In order to guarantee the schedule and quality, Meishan Steel's purchase department strengthens the communication and coordination with each relevant department to improve the purchase efficiency and accuracy.

In respect of purchase cost and steel inventory control, the purchase personnels involve themselves in the project early to keep close attention to the actual demand of the project, market situation and steel inventory to increase the directly supply material while speeding up the inventory turnover. With the method of timely release and digest of the inventory, the steel inventory of A supply is controlled in a good manner.

As for the material deferred due to change of the project, the purchase department made meticulous coordination to timely make them to be consumed by other project, so that the 1200t inventory of continuous casting steel inventory is timely reduced to 366t, effectively reducing the fund occupied by the inventory and overstock. As for the welded pipes and seamless tubes of multifarious varieties and specifications, the management personnel check the model and specification one by one and reduced the inventory by 63.51t.