After conducting extensive research in overseas markets such as Sweden, Germany, and Japan, as well as in China, Tan Xuguang, Party Secretary and Chairman of Shandong Heavy Industry Group, has had more in-depth thoughts on the supply chain: "World-class companies all regard supply chain as their core competitiveness," "Global competition is about supply chain competition," and "In the new technological era, we must 'aggregate and fission' with supply chain partners."

At the supply chain management work conference of Shandong Heavy Industry Group held on June 27, he shared his observations, feelings and gains with cadres and employees. "Purchasing has become the contradiction 'vortex' of the whole group", "supply chain management is disorderly and seriously 'fat'", "product quality is a 'time bomb'"... Behind each problem, there are examples and data to support, which makes the listeners blush and sweat.

"Improve the supply chain and create a win-win chain" has become a consensus in various places. According to the inventory, the number of suppliers of physical enterprises in the province under Shandong Heavy Industry Group is 6,260, China National Heavy Duty Truck (14.320, 0.07, 0.49%) suppliers is more than 2,700, and Weichai and Sinotruk engine suppliers are more than 800, these suppliers are all over the world.

"Purchasing work is the focus of contradictions in the whole group, with frequent quality problems, frequent delivery problems, and frequent integrity problems." Tan Xuguang said that procurement problems not only reflect the extensive management of the procurement system itself, but also the concentrated amplification of problems in various links such as market, R&D, and manufacturing.

Some suppliers have poor quality and small quantity, and even rely on "relationship households" to introduce them; the front-end departments that have the greatest impact on the procurement system are R&D and application systems. Designers have to run around, and the back-end has to run around. How can the technical department have the concept of engineering management? All companies know that centralized procurement is good, but they are "vigorous" verbally and "procrastinate" in action, and they don't want to hand over the "territory" to others...

When the problem "surfaces", how to "scrape the bone to cure the poison"?

In January this year, China National Heavy Duty Truck Group (a subsidiary of Shandong Heavy Industry Group) held the 2024 Global Supply Chain Strategic Partner Conference and launched the "Red and Black List" of suppliers for the first time. Among them, the red list shows the group's 20 strategic suppliers, 10 excellent domestic suppliers, and 10 excellent international suppliers; the black list shows the group's 268 suppliers that will be optimized and eliminated in 2023.

Since Tan Xuguang served as the Party Secretary and Chairman of China National Heavy Duty Truck Group, China National Heavy Duty Truck's corporate reform, especially the reform of the supply chain procurement system, has been a real tough battle. The purpose of the tough battle is to accelerate the construction of an efficient, safe, globalized and sustainable new supply chain system.

"We will play a good role as the 'chain leader' and build the new supply chain into a core competitiveness." Tan Xuguang said that it is imperative to work together to move towards world-class and win the supply chain upgrade.