Improvement Design On Supply Chain In Wind Turbine Manufacturer A Under The Circumstance Of Industry Crisis

In China, the global economic growth turned to slowdown in2012, also as aconsequence of depression of coal, iron and steel, photovoltaic industries, the windenergy industry also started suffering the slowdown and the situation became evenworse from the2nd half year of2011. The government report of the five session ofthe eleven National People’s Congress on March6th,2012mentioned thatgovernment should restrain the over capacity of solar and wind energy. Then solar andwind energy kept going down as a consequence of that report. The project approvalfor solar and wind energy had been moved from local government to State ownedassets supervision and Administration Commission, so many companies had gonebankruptcy or transferred to other field because they could not get enough projects tomake the companies survive. In general, the total orders they got in2012were only25%of2011. The whole industry met this big challenge and had the risk to shut downor layoff. Out of China, the main market for wind energy is US and Europe. Theproject from this market was also not as many as before caused by the economydepression in US and European debt crisis. A company in US also had been shut downas a result of that. The situation in Brazil and other South American countries wastotally different, the market there was just like the market in2005of China,developing fast, which would be the big cake for all the wind turbine manufacturers tofocus on. But in general, the trend of world wind energy industry had become slowlygrowth instead of fast development. Even the benefit of wind energy resource anddevelopment potential were still existed, the temporary factors affected hugely towind industry, which forced all the wind turbine manufacturers to try their best tosurvive.The background of this thesis is wind energy industry crisis in2012, to study the windenergy industry supply chain improvement topics based on the management theorylearned and work knowledge and experience. Firstly, to analyze the operation statusand problems of company A, optimize the supply chain management of company A,get the solution to optimize, build up project team, make project plan, start to adjustthis supply chain by improving goods quality, controlling cost, achieving the target ofwin-win with suppliers, build up a new supply chain with high quality, sustainabilityand low cost. Secondly, to explain how important the supply chain to themanufacturing company and the new challenge and solution in the following years ofwind industry. For the solution in details, some good methods and management skillshave been used. After two years of hard work, company A really survived from theindustry crisis as the contribution of supply chain improvement project, and achievedthe original target to sell wind turbine abroad, reinforced the competiveness ofcompany A in cost, quality and delivery. The analysis of this essay for supply chainmanagement improvement is very important for the companies in industry crisissituation.