Research On CSCEC's Central Purchasing Of Steel Bar In East China

Given that China's economic development enters into a "new normal" stage,the competition of construction industry is becoming increasingly fierce.The continuous rise of the costs of raw materials,labor and transportation leads to a higher cost of enterprise procurement.In the overall construction engineering,materials procurement accounts for 60%to 70%of the total output value,so the management level of material procurement directly affects the operating income of enterprises and even becomes the lifeline of enterprise survival.The old decentralized procurement approach of construction enterprises has been not suitable for the development of enterprises.The implementation of centralized procurement is the general trend.Compared with decentralized procurement,centralized procurement model can effectively reduce the cost of procurement,lighten the workload,standardize the procurement process,enrich the procurement resources and realize sunshine procurement.This paper focuses on the centralized procurement mode of China State Construction Engineering Corporation,which is a large state-owned construction enterprise.China State Construction Engineering Corporation has the longest history of professional development and market-featured management,the highest level of integration,and is the world's largest investment and development corporation in China.From 2013,CSCEC set up the 7+N regional centers nationwide,which are specially responsible for the development of the regional centralized procurement work.This paper will mainly focus on the following three aspects:the first one is the behavior prediction and measures of bidding supplier with centralized procurement mode,the second one is what is the centralized procurement bidding organization,the third one is the study and adjustment of the performance of the centralized procurement mode.This paper will take the steel centralized procurement of the East China region of CSCEC in the year of 2015 as a specific case to carry out a full range of research and give the corresponding conclusions and recommendations.Specific contents are summarized as follows:Firstly,based on related theories on the procurement of materials at home and abroad,the paper will draw lessons from the related literature about bidding and game theory at home and abroad,then combine them with the specific work of steel procurement and predict the behavior of bidder's from the bidder's perspective.Secondly,the paper will combine the prediction towards bidders to make corresponding countermeasures,and take the centralized procurement of the East China region of CSCEC in the year of 2015 as a specific case to conduct the research from two aspects of bidding planning and implementation and performance investigation and feedback.The paper will also introduce a normalized operation mechanism which applies "continuous improvement" principle.Finally,the paper will give the conclusion of the research,and put forward the corresponding suggestions for the construction enterprises to centralize the procurement of steel.