The company’s deputy general manager, Ren Jianming, presided over a conference, on Aug 4, to mark the beginning of the ChemChina Centralized Coal Procurement Project. In August, 39 of ChemChina’s coal subsidiaries will begin using this new process to purchase coal.
Ren explained that this is a strategic project to cut procurement costs and that the heads of all the companies need to support it. He also explained what was needed in the procurement process for first seven companies involved.
ChemChina started the project back in May and drew up organization and business plans and set up a centralized procurement system. It collected data from39 enterprises, did a study of 18, analyzed the results, and drew up improved procurement plans for the first seven companies involved. It also negotiated contracts with the Shenhua Group and other large coal companies to be sure the procurement process goes smoothly.