Philippine E-Journals

MM Steel Service Center Corporation Procurement Practices: A Benchmark for a Competitive and Upcoming World Class Entity

Jan Celsius B. Plete | Angelica P. Velasco | Rose Anne Joy S. Ventura

Discipline: Accountancy

 

Abstract:

This study aimed to assess and enhance the procurement practices of MM Steel Service Center Corporation by evaluating the existing procurement practices implemented by the company as well as its internal control. The benchmarking of procurement practices with other steel companies together with the internal control was used to gauge the competiveness of the client-company to qualify as a world class entity. The consideration of the quality control practices, participation of customers and suppliers, and utilization of the secondary data took part in the study.

 

The study used descriptive and comparative analysis. It also included the evaluation of benchmarking of the procurement practices. The application of data was also used based on the existing practices of the companies who were also in the same field, the steel industry. Self-administered questionnaires, internal control questionnaires (ICQs), personal interviews, and observations were used to achieve the objectives of the study.

 

The company garnered an average of 92.5 % affirmative response on the overall assessment internal control regarding procurement which was concluded to be strong. This conclusion was also based on comparative analysis of the client-company with that of fifteen other steel companies and also feedbacks from five customers.

 

On the other hand, there were weaknesses identified in the study that lead to the following recommendations: implementation of modular sourcing; application of hedging technique; continuous adaptation of prospering labelling of raw materials; compliance to Sarbanes-Oxley Act (Sec. 404); conduct unannounced audit; proposing walkthrough test; and conduct further study.