Research On The Procurement Mode Of Coal For Power Generation Of Guangzhou Development Power Group Co., Ltd. In The Context Of Supply Chain Management

Abundance coal resources in China determine the dominant role of coal-firedelectricity in Chinese energy supply, and the stability of power supply is determined bythe stable supply of coal for power generation. Since2013, great reformations occurredin the market of coal for power generation. The government abolished the double trackpricing system of coal supply, and the price of coal become market-oriented. Thatchange result in the intensified conflicts between "market-oriented coal" and "plannedelectricity". Therefore, the issues on how to adjust supply chain and procurement modeof coal under the new environments are of great significance for electric powerenterprises to deal with the complicated coal market, and to ensure the supply of coaland reduce operational cost.This paper selects the coal supply chain and procurement mode ofGuangzhou Development Power Group Co., Ltd. as the research object. Based ontheories of SCM (supply chain management), through literature research, theoreticalanalysis, comparison which combined both qualitative and quantitative methods, thepaper deeply explores and discusses relative problems aroused during the supply chainmanagement and procurement of the company. The analyses reveal several problems inthe supply chain management of the company, including: no strategic cooperation withupstream supplier, low accuracy in prediction of demand and poor planning, poorcoordination between the type of coal needed and the demand of production,management of transportation of coal need to be improved, management of cash flowput back the operation of supply chain, obstacles hamper the flow of information in the supply chain, and weak links in internal management.In response to these problems, based on frontier SCM theories, learning fromdomestic and foreign fraternity’s successful experience, the paper insists thatoptimization and improvements on the procurement mode should be made for thecompany to meet the requirement of coal supply chain management. Measures are thenproposed, which include: introducing supply-chain-based management strategy,restructuring the procurement management framework according to supply chainenvironment, re-engineering the process of coal procurement, strategic cooperation withupstream supplier, optimized short distance transportation and transshipment,cultivation of talents and build a strong talent contingent. Those measures can optimizeprocess of supply chain management and optimized procurement mode are proposed,which match the strategic objectives and managerial requirements, and are helpful inpromote the core competence of the company. Those are new attempts for electricpower enterprises to introduce supply chain management ideas, and are helpful boththeoretically and applicable for the operation of domestic electric power enterprises.