Recently, the centralized management work of New Aeolus for purchase has passed the annual audit of ChemChina and won high praise. New Aeolus kept itself fully aligned Pirelli, took strong steps in terms of purchase strategy, process and mechanism, actively pushed forward deep reform, drew on and utilized advanced management experience, integrated global resource advantages and local business practices, and kept enhancing the level of purchase management. So far, it has saved over RMB50 millions through implementation of its collaborative purchase natural rubber and butyl bromide.
Since its integration with Pirelli’s industrial tyre business in the second half of the last year, New Aeolus has always taken purchase management as one of its core competences, set up its procurement system from the global perspective, actively promoted the full integration between global resource advantages of Pirelli and its rich experience in purchase in the domestic market of China, and achieved rapid alignment with global best practices in terms of methodology and management tool. Meanwhile, by establishing its Asia Pacific Procurement Head Office in Beijing, New Aeolus keeps improving its purchase process and management mechanism, and has significantly improved its level of purchase management.
Meanwhile, New Aeolus has seized the opportunity of purchase management reform, and led and driven the reforms across the board. On the one hand, it pressed ahead with management architecture improvement and management integration, established a dominant mechanism for purchase management, and kept strengthening its operation efficiency; it has established the regular meeting system for the purchase management strategy steering committee, which is convened and chaired by the head office to predict precisely the price trend of main raw materials on the upstream of the tire industry, work out the range of product cost fluctuations, and form a corporate-level procurement strategy. On the other hand, it has gradually worked out management strategies related to sales policy, product pricing, funds management and supply chain management in accordance with the purchase strategy, formed a synchronous and rapid response coordination mechanism led by the purchase department, and achieved rapid decision making and high-efficiency operation of the company.
By drawing on experience in centralized management and taking various measures such as unified purchase strategy and frequency, New Aeolus purchased over 100 thousand of raw materials via an E-commerce platform between January and October 2017, and the purchase price was lower than the SICOM market price by more than 4%.