Study On Strategic Procurement With Steel Casting Of Dongfang Turbine Foundry Workshop

Entering 2010, the global manufacturing industry encounters unprecedented challenges. The whole industry develops from supply falling short of demand to overcapacity, from scale advantage to meager profit age, and from flocking investment to industrial transfer, and its development comes to the turning crossroad. As the biggest manufacturing base in the world, China faces with the changes of market. Its slowdown of macro economic development, poor capital market liquidity and weak capital market aggravate the collapse of massive small and medium-sized enterprises. With the development in recent years, the turbine industry, which has the largest association with the main business of Dongfang Turbine Foundry workshop, shows gradually obvious market difficulties: relative saturation of thermal power market, difference of user needs, tightening cycle of production purchasing, high demands of technical level, declining profit margin of orders and other problems. Under the current market environment, reducing production and procurement costs, increasing the speed of customers’ response and improving management efficiency will help the enterprises gain the access to the market.Under the above background, this paper analyzes current procurement situation of Dongfang Turbine Foundry workshop and the supply environment of market procurement that it faces in the round, has a detailed study on the related theory of procurement strategies and strategic procurement through referring to a large number of literature works, defines the connotation of strategic procurement, discusses the importance and management guidelines of strategic procurement and it focuses on studying the application of supplier group structure design, building long-term supplier relationship and purchasing integration, these three procurement strategies.Dongfang Turbine Foundry workshop is the domestic well-known foundry manufacturing enterprise and the subordinate unit of Level 2 of Dongfang Turbine Co., LTD. It operates independently as simulated juridical person from 2013 until now. This paper takes the workshop’s procurement of steel casting as the object of study, centers on the development strategy of the workshop. Firstly, it analyzes the workshop’s internal and external environment and current procurement situation, and then analyzes the foundry’s material properties by applying procurement positioning model. Based on it, the paper proposes the workshop’s strategic procurement strategies from the aspects of supplier group structure design, building long-term supplier relationship and purchasing integration, and at last, it draws up the workshop’s strategic procurement strategies and puts forward organization adjustment scheme.This paper has certain reference on the procurement management and choosing procurement strategies for the foundry workshop and other enterprises having similar characteristics.