Procurement Optimization In Oversea Power Plant Construction Of Z Company

Getting the rapid progress of the extent of marketization in Chinese economic and "go global" strategy in China, more and more Chinese company is contracting to the project in oversea market. Southeast Asia, West Asia and Africa are in rapid developing stage, the investment in infrastructure construction area is hot. Chinese company take project in traffic, house building, airport construction and energy construction area. Chinese contractor win the market with the low price, low profit even running in the red. To improve the core competence, reduce the procurement cost and increase the project profit is a matter of great urgency.This thesis refer to the procurement flow optimize based on the Z-company existing procurement flow. Z-company is a "state owned" professional international engineering company. Z-company was into leaping development from 2007, taking plenty of international project and the EPC price is over the 200 million USD. The existing procurement flow is the bottle-neck of business development.First of all, the thesis analyze the exist procurement flow and all the EPC sub-contracts (about 22,000) of Z-company in 5 years with "Pareto principle" related to Thermal power plant construction, Transmission line construction and Rehabilitation Power Plant area. Classify according to price and equipment type, Simplify the flow for the low price and high general use equipment; complete the flow for the high price and professional equipment to ensure the fair and reasonable flow.Secondly, for the oversea project, it is not only the equipment cost in the procurement cost, but also include the cost related to customs declaration, verification, tax rebate, import tariff, the procurement flow optimized should be follow the total cost lowest rule.This thesis provide a practical solution to improve the efficiency of the procurement and company competitiveness by optimized the Z-company procurement flow. The thesis combined the procurement principal and total cost; ensure the company strategy via procurement flow, make the procurement management as a solution to get profit in company.