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Material supply is the source of vitality of equipment manufacturing industry and the necessary condition of production and manufacturing. Material supply work can effectively guarantee the continuity of enterprise production, so that the manufacturing cost is greatly reduced. NHI regards material supply as an important part of its development strategy and builds its core competitiveness by continuously strengthening material supply management.

Mixed Reform Brings Confidence in Development

Known as the cradle of heavy machinery industry in China, NHI enjoyed a high position in the field of heavy machinery manufacturing both at domestics and overseas. However, in recent years, due to numerous obstacles, such as the outdated ideology of traditional state-owned enterprises, the closed and rigid system and mechanism, and the management style that was divorced from the market, as well as the drastic fluctuations of the industry market, the business development of NHI has fallen into a serious loss, the enterprise has been burdened with huge debts, a large number of employees faced the risk of losing their jobs, the payment to upstream suppliers was in arrears, and the business reputation of the enterprise has been seriously damaged.

Since Fangda Group actively participated in the judicial restructuring and mixed ownership reform of NHI and became the largest shareholder of the enterprise in accordance with the laws, NHI quickly got rid of the operation dilemma and entered a new stage of development by virtue of the strong capital advantage and advanced management concept of Fangda Group. In order to quickly restore enterprise supplies work, reshape the corporate image, establish confidence of cooperation, make the supplier better understand Fangda Group and the new NHI, achieve mutual benefit and win-win result, NHI actively organized the supplier to carry out the forum, introduced to the new and old friends the changes brought by the mixed system reform to NHI. Through patient and meticulous communication, many suppliers have re-established business contacts with NHI.

Precise Localization Boosts Benign Development

Material procurement played a crucial role in the business performance of enterprises, and the contribution of enterprise procurement value in profit was becoming more and more prominent. Therefore, promoting the continuous reform and innovation of enterprise procurement management has become an important subject for the survival and development of enterprises. For a long time, NHI paid more attention to material price and spent most of the work on the price containment with suppliers, the problems such as material quality, delivery time and performance risk were usually controlled after the events. Once a problem occurred in a certain link, it will have an irreparable and serious impact on the production plan of the enterprise. Meantime, for those issues such as there were loopholes in the quality control of materials and the lack of active participation in the quality control of suppliers' goods, it was impossible to deal with the hidden problems simply through the acceptance inspection of finished products, which has led to a lack of strategic suppliers. Many suppliers' cooperation was a "one-shot deal", which seriously affected the production schedule and product image of enterprises.

Since the implementation of the mixed reform, NHI has always emphasized the important position of material supply in the enterprise. By constantly exploring the characteristics of material procurement under the new situation, and constantly improving the structure and working methods of the supply chain, a set of effective material procurement process has been established based on the characteristics of core products. The first is to change the old procurement method based on experience through delicacy management. The behavior and operation of various procurement management works were guided and evaluated by introducing specific measurement indicators. The on-time procurement, supply and production were realized through the data of the completion rate of procurement plan and the qualified rate of product quality. Secondly, the post-change inspection was changed as the pre-change control, paying more attention to the audit of supplier development and introduction, putting supplier selection in the front end of the supply chain, forming the work standard of prevention in advance and supervision in the process, excluding unqualified suppliers from the supply system in the early time, and minimizing the risk and harm that may bring to the enterprise.

Unify Thoughts and Gathering Strength of Struggles

The development of enterprises was ultimately the development of people. NHI always adhered to the development concept of people-oriented, and concentrated the struggle strength for the development of enterprise by unifying the thoughts. On December 21th 2020, Mr Wang Xuemin, the Chairman of NHI, and Mr Guo Jianmin, the CEO of NHI, held a meeting in the procurement system to listen to problems and difficulties in the work. The staff put forward a lot of situations encountered in the actual work, and put forward many good suggestions and opinions. At the meeting, Mr Guo Jianmin said that the procurement work should well deal with the relationship between quality, quantity and price and the interconnection between departments, so as to form a good development with the old to bring the new. Mr Wang Xuemin stressed to emancipate the minds, the procurement work was mainly to ensure supply, and the completion rate of the plan should strive to reach 100%. The forums like this were held frequently in NHI, where employees got to know the general direction of the company's development and the importance of their work, and the managers of the company could understand the thoughts and feelings of the employees through the discussion, learned the practical problems and difficulties existing at the grass-roots level, so as to adjust various systems and processes in time. It was this working style of unity that made the all the works of NHI full of vitality.