| The development of Power Grid Enterprises entered into a new period characterised by group corporation and implementation of lean management, and reached the step of UHV and Smart grid in which different levels of grid require a coordinative construction. Because materials are one of the firm's critical ressouces, improving the effectiveness of the material management system, advancing the material intensive management and realising the transition to supply chain management become a new research project for power grid enterpreises.H Provincial Power Corporation draws lessons from the advanced modern logistics management idea. Through strenthening the infrastructure including the materials intesive management mechanism, human ressouces, informatisation and standardisation, the entire management of ten key tasks which are planning, purchasing, contracting, supplier management, warehousing, distribution, quality control, recycling, operation materials and emergency materials, this company integrated the organisational system, changed the management mode, optimized the operation process, began to realise the intensive allocation of firm resources and turned to a new page of materials intensive management.Through systematic and scientific planning and efficient management, the large grid corporations can improve the efficiency significantly, to satisfy the requirement of construction, grid operation, accident repairs and emergency rescue and improve efficiency and integration of materials, information and fund, reduce the operation cost of materials and improve the competitiveness of power grid corporations.Based on materials management practice and advanced supply chain management theories, this essay tried to extend the supply chain management process to the demand department and supplier management, integrate demand department's resources and suppliers'resources and establish integrated planning mode, in order to realise the coordiation between demand department and materials management department. Besides, this essay aims to establish cost analyse mechnism, supplier incentive mechanism and strategical cooperation mechanism, for the purpose of coordiation bewteen the company and its suppliers and establishment of supply chain management model. |