Today, the China Federation of Logistics and Purchasing launched the “Scientific Procurement, Opposing Internal Procurement and Supply Chain” initiative at the 7th State-owned Enterprise Digital Intelligent Procurement and Supply Chain Conference, advocating the transformation of industry competition from “price comparison” to “value comparison, quality comparison, and innovation”, providing useful guidance for the development of industry standards. According to reports, in the current procurement process, some enterprises simply equate cost reduction and efficiency with lowering procurement prices. It is easy to form a market cycle of competitive price reduction, reduce companies' investment in R&D, and also create hidden risks related to product quality. Focusing on building a value-oriented procurement environment, the initiative proposes six self-discipline directions — adhering to high quality and high prices, honest cooperation, mutual benefit and win-win situation; removing all types of transaction thresholds and maintaining a fair competitive environment; doing a good job in pre-procurement coordination to reserve reasonable profit space for product innovation; optimizing evaluation standards to reduce the practice of simply setting standards at low prices; standardize security deposit and payment settlement processes to reduce financial pressure on suppliers; and strengthen industry coordination and self-discipline to reduce disorderly low prices. At the same time, the initiative proposes to rely on digital intelligence to promote industry quality improvement, and suggests that state-owned enterprises play an exemplary role, implement comprehensive cost procurement throughout the life cycle, abide by contractual agreements, and drive the industry to form a healthy and orderly competitive atmosphere.
Zhitongcaijing · 3d ago
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Today, the China Federation of Logistics and Purchasing launched the “Scientific Procurement, Opposing Internal Procurement and Supply Chain” initiative at the 7th State-owned Enterprise Digital Intelligent Procurement and Supply Chain Conference, advocating the transformation of industry competition from “price comparison” to “value comparison, quality comparison, and innovation”, providing useful guidance for the development of industry standards. According to reports, in the current procurement process, some enterprises simply equate cost reduction and efficiency with lowering procurement prices. It is easy to form a market cycle of competitive price reduction, reduce companies' investment in R&D, and also create hidden risks related to product quality. Focusing on building a value-oriented procurement environment, the initiative proposes six self-discipline directions — adhering to high quality and high prices, honest cooperation, mutual benefit and win-win situation; removing all types of transaction thresholds and maintaining a fair competitive environment; doing a good job in pre-procurement coordination to reserve reasonable profit space for product innovation; optimizing evaluation standards to reduce the practice of simply setting standards at low prices; standardize security deposit and payment settlement processes to reduce financial pressure on suppliers; and strengthen industry coordination and self-discipline to reduce disorderly low prices. At the same time, the initiative proposes to rely on digital intelligence to promote industry quality improvement, and suggests that state-owned enterprises play an exemplary role, implement comprehensive cost procurement throughout the life cycle, abide by contractual agreements, and drive the industry to form a healthy and orderly competitive atmosphere.
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