Study On Procurement Management Modes Based On Supply Chain Management For Nuclear Power Erection Companies

Nuclear power industry started in 80's of the last century. After more than 20 years development since excavation for Qinshan Phase 1 Nuclear Power Plant in 1984, 11 units have been built with a total capacity of 8.7 million KW. The total capacity of the 7 more units which are under construction is about 7.3 million KW. According to the national mid-term and long term plan for nuclear power development, additional 24 million KW nuclear power units will be constructed by 2020 to reach the total capacity of 40 million KW. By then, nuclear power will be 4 % of the total power generated in the country.Construction of the new units will be controlled in different ways: Nuclear power plants will be completely invested by companies instead of the state government. With this in visage, nuclear power business opens a door for the five large power groups. The five groups are ready to invest in nuclear power industry. With their presence, new blood will be injected into the nuclear power market. In the same time the nuclear power construction market (particularly erection market) will become a ground of competition .With increasing competition in nuclear power plant erection business, the room to decrease cost of materials is smaller. however, during material storage, procurement and consumption management, there's still rooms to be more cost effective.This article analyzes the procurement management under the environment of supply chain and the actual situation of nuclear power erection companies and studies new procurement management methods to be adopted for such companies: nuclear material categorized procurement strategy combinations and vendor managed inventory (VMI) strategy. With combination of these strategies, enterprises will be able to mitigate procurement & logistics costs, to save internal human resource investment and to improve material quality by integration of internal resources and use of reasonable external resources. With application of such strategies, material management in such enterprises will be also be improved to enhance their competitiveness. Hopefully enterprises that will take part in the new round of nuclear power plant construction will find this article useful.