A Study On The Supplier Management Of A Hydraulic Power Plant

With the implement of "factory nets treated, bidding for access", electricity enterprises are faced with increasingly fierce competition environment. Due to the particularity of electric power industry, the production, supply and sales of electricity must remain balanced, enterprises have to keep with the stability, security and sustained of power plant operation, as the meanwhile, reduce cost to resist competition. Effective supplier management is the source of excellent goods, timely supply and reduced cost; enterprises resist competition through the integration of operation flow of upstream and downstream.After the detailed investigation of A hydro-plant supplier management, we conclude the main problems as follows: shortage of special staffs in suppliers management, the contradiction between leaders and purchasing directors on supplier amount, ambiguous classification of supplier relationship, underestimated attention to the value of strategic cooperative partnership, too many small orders and successful bid with the lowest price. We put forward a series of strategies about consummating supplier management to some questions that A hydro-plant exists. First, we must establish a supplier management team to better handle all kinds of jobs about supplier management. Secondly, we should optimize supplier amount to help enterprises decide the right quantity based on material classification according to 20% - 80% principle. Thirdly, we should improve the supplier relationship management, and point out the importance of the strategic cooperative partnership. Finally, we should design a proper supplier selection and order quantity distribution plan. The best quantity distribution mode is proposed by minimizing relevant costs while meet the required materials quality and timely delivery. Moreover, we incline to assign more order quantity to excellent suppliers.