To improve the centralized procurement of natural rubber and achieve better coordination and stronger synergy with Pirelli in the near future, China National Tire & Rubber Co., Ltd. held its 2015 seminar with natural rubber suppliers on November 22 in Qingdao, under the theme of “Strategic Breakthrough and a Shared Journey towards the Future”. Chairman and General Manager of the Company Bai Xinping and COO Yang Xun attended and addressed the seminar. Also present at the event were more than 150 people from ChemChina Business Department, Pirelli, China Rubber Trade under China National Tire & Rubber Co., Ltd., the Planning and Development Department and nearly 100 natural rubber suppliers around the country.
Bai Xinping said that in a market environment of low growth and fierce competition, a major difficulty is how to solve the problems of large surplus capacity and excessive competition, and achieve healthy and sustained development of the natural rubber industry. Since 2014, strongly supported by ChemChina, China National Tire & Rubber Co., Ltd. has made great breakthroughs in the centralized procurement of natural rubber in close cooperation and through joint efforts with all its suppliers. So far, a pattern of centralized management and e-commerce-based procurement has taken shape. This is a useful attempt for innovations in and improvements of the natural rubber supply chain and win-win development across the industry chain.
Bai emphasized that according to the strategic deployment of ChemChina, China National Tire & Rubber Co., Ltd. has completed its acquisition of Pirelli and are making great efforts to help the new company fit in. As the integration progresses, China National Tire & Rubber Co., Ltd. will draw on the advanced management practices of Pirelli to transform towards operation management and take the lead in the integration of the four parts of work including procurement management. We will seize the opportunity of the integration with Pirelli to deepen our cooperation with suppliers, achieve better cooperation, give full play to our respective advantages, seek shared development and win-win results, make joint efforts to build the value of our supply chain and enhance our competitiveness on the international market, and strive to find best practices for the sustained development of China’s tyre industry.
Yang Xun said that the company will make active endeavor to adapt to the new normal of the rubber industry, coordinate its transformation towards operation management with the global capital integration in the global tire industry, take the two steps as one, find ways to make breakthroughs, and borrow the advantages of Pirelli in management and technology to enhance its overall operation.
Anthony, Pirelli's Director for global natural rubber procurement, exchanged ideas with participants from supply chain management, procurement procedure, and social responsibility, centering on Pirelli’s management on natural rubber procurement.
China Rubber Trade provided in-depth analysis, summary, and plans on the centralized procurement of natural rubber in 2015. Participants from suppliers had heated discussions on topics of common concern in the industry and gave pertinent suggestions.
At the event, awards were granted to outstanding natural rubber suppliers and model workers for centralized natural rubber procurement of 2015.Representatives from Chongqing General Trading Chemical Co., Ltd. and Sinochem International Corporation and other award winners delivered speeches. Prior to the event, officials from the Planning Department of China National Tire & Rubber Co., Ltd. and China Rubber Trade had in-depth exchanges with people from relevant institutions on the unification of natural rubber technical standards.
China National Tire & Rubber Co., Ltd. started centralized natural rubber procurement in August, 2014, and the procurement system was officially launched in October. This made the company the pioneer in e-commerce platform for centralized procurement in the industry. So far, purchases made through centralized procurement has a total value of RMB 1.7 billion and nearly 100% of all material purchases across the system are made through centralized procurement.