Research And Countermeasures Of Jiangxi Copper Grouplogistics Resources Integration

Jiangxi Copper Corporation (JXCC) is one of supperintegrated stated-ownenterprises in the China’s nonferrous metals industry which focusing in coppermining, mineral processing, smelting and refining. In2014, JXCC has been ranked asthe383th of the fortune global500, breaking the record of China’s copper industryand Jiangxi world-class enterprise.Although the group has been focusing on developing a possible strategy toreduce the logistics costs and integrating the supply chain, like most of thestated-owned enterprise, the logistics operation is still very challenging. Thedevelopment of logistics management is far behind the development of the wholegroup. As a result, more and more risks and challenges in logistic and supply chainmanagement have been appeared while the group are growing significant in recentyears.The supply chain of the company (this includes logistics activities such as supply,production, and sales) are not integrated because of the geographical issues. This alsoled to a consequences of the advantages of efficient supply chain management cannotbeen shown. Without an integrated supply chain network and integrated logisticsdepartment, none of the department could perform the logistics operation efficiently.An inefficient logistics network has been formed. As a result, the order cycle, transittime of the raw material and product are not optimised. Capital cost of product hasbeen increase due to long transit time.The logistics problem has become critical in current situation of the world. Asthe world has enter the Post Financial Crisis Era, although the economy in mainlandchina was stabled and improved, China’s economy growth is decelerating. ThereforeChina is suffering from huge downward pressure. As a result, the cost of material,utilities, environment, labour and finances etc. has continuously increased. This leadto consequences of the production cost increased rapidly.Even though the global economy are recovering from the finances crisis, the international competition is getting fiercer because the recovering are full ofinstability and uncertainties. Because the current nonferrous metals market is a globalmarket, the circumstances of global economic has given JXCC greatest challenges onfuture development plan. These push the group to change from gaining benefit fromeconomic of scale to gaining advantages from efficient supply chain (Reduce TotalLogistics Costs). In order to reduce the total logistics cost, developing strategies tointegrate and improve current supply chain of JCC has become one of the majorpriority task for JXCC.This article focus on the study of integration of state-own enterprises supplieschain. The report will start with giving some background information and purpose ofJCC logistics integration plan. Then a literature review in regard to contemporaryenterprise logistics, enterprises logistics integration, supply chain management pointof view from mainland and scholars aboard will be included.The study of JXCC Logistics Integration plan will also be supported by a survey.The survey will reflect the current situation of JXCC logistics resources andmanagement and highlight the feature and needs of JXCC internal and externallogistic networks.The suggestion and possible strategy to integrate and re-organise the structure ofJCC or other similar enterprises in nonferrous metal industry logistics network will beprovided by analysis the internal and external environment of JXCC logistics networkthrough SWOT analysis.