China Petroleum Reserves Management System Of Ordinary Steel Set

The room for cost reduction in the process of oil exploration, development, and refining becomes increasingly limited, as technology matures. In this context, supplies purchasing, of which costs account for over60%of the revenue, has attracted the management’s attention. Procurement cost reduction means price advantage, supply chain improvement, and profit boost. By means of centralized storage, enterprises can standardize procurement, improve supply efficiency, reduce the size of stockpiles of the group, improve procurement management and bring down full lifecycle operating cost. This thesis starts with introduction of the current condition of material storage both at home and abroad and the condition of centralized storage in industries other than the petroleum industry. Then come the analysis of PetroChina’s supply and demand of plain carbon steel and the current condition of procurement and storage management, the introduction of operating mechanism to tackle the current problems in centralized storage management, and the analysis of centralized storage management and implementation strategy in terms of the determination of the materials for storage, the location of consolidated storage, inventory management model, information system development and risk management, based on supply and inventory management theories. Finally, suggestions are proposed. The analysis of PetroChina’s centralized storage management aims at achieving maximum profit of the procurement supply chain and improving PetroChina’s materials procurement efficiency.