Development of procurement management system at re-roll maker

The global increase in demand for steel has caused the depletion of resources, and the demand for material procurement is growing among steel manufacturers. Furthermore, measures to improve the transparency of processes related to material procurement are required in terms of compliance and internal control. Under such circumstances, Toyo Kohan Co., Ltd. has introduced a procurement management system to ensure stable and inexpensive material procurement and to improve efficiency and transparency by systemization of the procurement processes. This system comprises: (1) a procurement system with functions including procurement arrangement, receiving inspection, inventory control, and material requirements planning (MRP) calculations based on production volume, (2) a work flow system from the initial request from a division to the receiving verification, and (3) an EDI trade system with suppliers. This paper reports on the outline, developments and effects of introducing this system.