Supply Chain Management

A considerable part of the world’s most modern metallurgical plants now operate in P. R. China. Under the strict control of SMS group, a steadily growing volume of mechanical parts and equipment used in SMS group plants has been manufactured in Chinese workshops, which led to improvement of product quality and technological upgrade. As SMS group has accumulated decades of experience in construction of major metallurgical plants in China, the company has absorbed the best and most qualified Chinese workshops and suppliers into its global procurement network. 

In order to better manage procurement, manufacturing, supply, logistics and other business in China, SMS group has set up the Supply Chain Management Division in China, which is responsible for the procurement activities in China for SMS group. The Division consists of Strategic Procurement Department, Operating Purchasing Department, Commercial Execution Department and Project Execution Department, and its team has rich experience. All our procurement managers, project managers, engineers and commercial specialists are well trained in our headquarters in Germany. 

The Strategic Procurement Department is responsible for the establishment and improvement of the Global Procurement Vendor Database of Supply Chain Management Division about the information of Chinese suppliers. It optimizes the procurement procedure according to the requirements of the Total Quality Management (TQM) and Procurement Manual (PM) and by using tools such as the Supplier Management Tool (CSMT), Bundling Tool, and Frame Contract. It provides service, supervision, and strategic guidance for project procurement, and analyzes the procurement costs of various material groups in the projects’ design, sales and manufacturing. It also puts forward cost solutions to rectify, improve and optimize procurement work to realize the core functions of the Group and ensure the minimal total costs in the supply chain management.

The Operating Purchasing Department is responsible for making price inquiries to at least three local suppliers audited and well-screened by SMS group as per drawings/ requirements provided by SMS group and/or end-users. After carefully evaluating of their facilities, techniques and capabilities in a scientific and systematic manner, it designates the supplier most suitable for the job, and awards the contract to the selected supplier. The Operating Purchasing Department is also responsible for the procurement of all the bought-out parts for SMS workshops in China.

The Commercial Execution Department is responsible for the orders’ commercial management and logistic management, including payments of orders; application for FII (free issue items); packing, shipment and customs formalities for imports & exports; FEC settlement and tax-refund. Its duties also cover the management of equipment packing, including label, packing list, delivery notice, and suggestion and inspection for packing solutions.

The Project Execution Department is responsible for following and controlling the entire manufacturing process after the order was awarded to Chinese suppliers, including technical clarification and liaison, coordinating and solving issues occurred in manufacturing process and keeping the time-schedule to ensure punctual delivery.

Supply Chain Management Division Organization Chart