Study On Application Of Fuel Supply Chain Management In Xing-tai Power Company

Supply chain theory has derived and been practiced in manufacturing, and is attracting increasing attention and application in non-manufacturing companies (such as retailing and service). Nevertheless, supply chain management theory has not been widely accepted in power plant, which is significantly insufficient in systematic application. The fuel cost accounts for a very big proportion in the whole cost of power plant, so to lower fuel cost is the pre-requisite of these companies, also the chief competitiveness in electric power market. It is important to strengthen the fuel supply chain management of the power plant company.For the Xing-tai Power Company, which has lower electrovalence, older equipment and multitudinous stuff, there is limited space to improve the energy consumption in power generating process. The only way to survive is to reduce its cost through supply chain management, cutting down coal price in order to lower fuel cost.The obstacles in face of Xing-tai company's fuel supply chain management are high purchasing coal price, instability of the delivery and quality, unreasonable transportation proportion and so on. The amount, price and quality of the coal are far more than stable since the coal market fluctuates violently, thus put the power-generating process, boiler combustion and power cost at risk. This paper demonstrates how to solve these obstacles with supply chain theory to manipulate a practical strategy to strengthen its core competitiveness, gain sustainable development, stabilize fuel supply and make the coal bidding price under control.The paper brings forward the particular project of Xing-tai Company fuel supply chain, taking realism and long-term goals into account, and points out fuel supply chain management implementation stratagem, optimizing the mechanism, pattern and establishment of the supply chain management. All these viewpoint and particular projects have very important meaning for the Power Plant Companies to strengthen their fuel supply chain management.