Research On The Logistics Resources Integration Of CREG Material System

The China Railway Electrification Bureau Group(CREG) Co.,Ltd is a large-sized technology-intensive Integrated business enterprise with railway construction as its main business. The Railway Electrification Bureau affiliates with this Group. With the listing of the parent company, CREG faces heaver and heaver pressure from the scale of business, cost and profit. Although its turnover has been in fast growth, the overall operating margin is low, and the competitive ability is also weak. The reason may include:1) procurement of the materials is conducted with a decentralized way, which results the weak ability to bargain; 2) the large supply network and warehousing facilities are under inefficient operation with the restriction from the internal relationship; and 3) the management level is low and the management styles are outdated.Under the background of the large scale construction of the electrification projects of high speed railway, the importance of the supply of the materials for the railway construction becomes more and more prominent. How to make full use of the internal resources of logistics to do well with the procurement and management of materials and how to make appropriate integration of the procurement process and the logistics resources? This means an important measure for controlling and reducing the cost, improving the income level, ensuring the quality and the reasonable construction period, and improving the core competitiveness of the China Railway Electrification Bureau.This article will, on the basis of the principle of the maximum efficiency in the whole group, make analysis on the basic conditions of the logistics resources of the China Railway Electrification Bureau with the logistics management theories, supply trains theories, supply logistics theories, and resource integration theories etc., and meanwhile with references to the relevant studies on the logistics resource integration of the same internal enterprises and by comparison of the three integration measures such as the integrated department of materials model, independent company model, combination of decentralized model and centralized model, work out the ways for the optimization and integration of the logistics resources of the China Railway Electrification Bureau, which means that the China Railway Electrification Bureau should make optimizations and integrations from such factors as logistics organs, logistics business, management system, procurement process, warehousing and logistics information, and put forward relevant suggestions on the implementation of the strategy of logistics integration from such perspectives as strict assurance of the sourcing quality, continuing implementation of the centralized procurement, research on the innovation of management model, changes of the business concept, improvement of the ability on the option of sourcing models, strengthening communication of the information on logistics integration.