Logistics Integration Of China Petroleum Pipline Bureau's Pipeline Project

ABSTRACT:China Petroleum Pipeline Bureau (referred to CPP) which is a subsidiary of China National Petroleum Corporation, main business is oil and gas pipeline construction. After 30 years of development, CPP built more than 40 long-distance pipelines, nearly 5 million km, at home and abroad. CPP is committed to become more competitive pipeline project general contractor in the international.Procurement is an important business of CPP, as pipeline construction generally taken EPC (ie Engineer, Procure, Construct).But only about 45% of the materials by China Petroleum Pipeline Material and Equipment Corporation responsible for the procurement, the rest of the decentralized procurement by the construction corporation, meanwhile, they responsible for transport and storage. Therefore, there are many problems in project management:In procurement, each purchase only responsible for the project, different projects often purchase the same goods at the same time, and different tenders of the same project often purchase the same goods at the same time, so that this dispersion procurement difficult to obtain scale advantages; In transport, transfer station are usually away from the construction site over one hundred kilometers, every construction corporation responsible for transport by themselves also waste the capacity; In the warehouse, because of the pipeline construction site is constantly moving forward, the construction corporation does not attach to the storage, they only make simple hand-out storage register, and even some projects'storage management are very confusing.So this paper analyzed the CPP's procurement, transportation, warehousing, information systems of the pipeline project, and given specific integration solutions from the organizational structure, business, personnel, information systems and finance, use of centralized procurement, business process reengineering and logistics integration theory, finally, evaluated the integration program both from cost and time. This paper argues that through the logistics integration projects to achieve global centralized purchasing of materials, lower acquisition cost, reduced the remaining supplies, accelerated cash flow.