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Procurement

Procurement

The Company has established independent procurement Dept., and has worked out the management regulations, such as Procurement Management Provisions, Methods for Supplier Management, Methods on Management of Imported Materials, Methods on Tender Invitation & Bidding Evaluation, Methods on Management of Annual Agreement Procurement Implementation. Based on the predominant idea of opening, equity, justness and competitive bidding, the Company sticks to the principle of price comparison and awarding with the lowest bid evaluation price on premise of conformity to the requirements. The Company has established eligible supplier database, makes regular evaluation and dynamic management.

At the same time, in order to consolidate management on procurement, the Company has developed "the qualification system" into “threshold system” and have established a working committee. The admittance and assessment of sub-suppliers will be performed collectively. The Company has founded the position incompatibility system based on quantification for operators and valuation for managers. In addition, the Company has realized annual agreement procurement, concentration procurement and strategic cooperation, so as to increase the work efficiency, reduce the product cost and avoid fraudulent risks also.

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