Benzene Material Procurement Strategy Research For SECCO

The petrochemical industry is one of the most important economic pillar industries in China, occupying an important position in the national economy. With China’s accession to the WTO as well as the rapid development of the market economy, petrochemical companies are faced with the situation of monopoly industries to competition in the market.SECCO is one of the largest joint venture petrochemical projects in China. The production capacity of styrene unit is65million tons/year, which is one of the core parts of the corporate profits. In recent years, domestic styrene plant production capacities are developing rapidly, product market competition is becoming fierce, and the styrene stock procurement costs become the key to profits of a corporate. After the turmoil in the international oil plummeted in2008and chemical market material prices in recently years, SECCO hopes to bring more profit margins through continuous optimization of raw material procurement strategy for the enterprise.By studying the theory of supply chain, procurement management, and procurement strategy theory, and also analysis the characteristics of petrochemical industry procurement management, the thesis combined with theoretical basis for analyzing the market of benzene material and SECCO company’s raw material procurement status, proposing a series of procurement strategy from procurement quantity, costs, and supplier management, and get conclusions through implementation and evaluation. Hope to help enterprises to reduce procurement costs and improve competitiveness in the market, and also hope to bring some of the thinking and experience to other enterprises in the petrochemical industry.