SUSTAINABILITY A CARRIER OF THE PEOPLE'S BETTER LIFE 57 58
REPORT
Deepening Diversified Cooperation
The procurement department is the first to receive new technologies, materials, processes, and products. They would pay field visits to
suppliers’ production base promptly to check whether all the new materials and the way they are made comply with our requirements
Our high-quality development is underpinned by transparent and efficient supply chains and seamless collaboration with business partners. We
for green production and our rules and policies on energy conservation and environmental protection. Anonymous and unnoticed visits
actively promote suppliers to fulfill their responsibilities and cooperate with first-class specialized institutions, industry alliances, and government
are often used to find out the real situation.
agencies to build an open and win-win platform that drives the development of the industry.
——An employee of CMSK Nanjing Company
Supply Chains Management
174
We have established a sound supplier management mechanism, continue to promote transparent sourcing and clean cooperation with suppliers, 32,335 27.23%
help suppliers improve their capacities through multiple channels, and build a transparent, efficient, sustainable and stable supplier relationship to
suppliers strategic suppliers strategic sourcing
enable mutual development in the long run.
RMB 24.827 billion 100% of suppliers signed the
Improving supply chain management of annual strategic sourcing Commitment to Compliance and Clean Transactions
In line with the supply chain management policy of emphasizing both quality and efficiency, we continue to improve the management policies and
procedures, strictly implement evaluations and certifications, and strengthen oversight over the selection, employment, development and retaining
of suppliers to realize whole life-cycle management.
6,574 new suppliers screened 100% of suppliers conducting quality 300
by quality, environment and safety standards and environmental assessments suppliers punished
for noncompliance
Improving the management system Building clean supply chains
We have tailored 12 warehousing inspections for different types of We have improved the three-in-one mechanism
Helping suppliers grow
suppliers to evaluate supplier performance in an all-around way, and to oversee the sourcing process, supplier
improve the quality of suppliers to create a high-quality supply chain. performance, and sourcing personnel performance.
We promote contract performance evaluation to all suppliers. The supplier The electronic bidding and sourcing platform is Seeking win-win cooperation, we regularly hold supplier conferences and technology exchanges. Lectures and
training are organized for suppliers on management requirements, quality control, anti-corruption, and technology.
evaluation questionnaire has been improved to evaluate suppliers and launched to build the synergy of internal and We also announce supplier rewards and punishments. All these measures aim to improve the quality of suppliers, 100%
their products or services in terms of their internal management, working external supervision, standardize the sourcing strengthen cooperation and mutual understanding, and build a sustainable supply chain. In 2021, we held five of suppliers
covered in training
environment, occupational health and safety, environmental protection, process, and promote clean sourcing.
purpose-specific training sessions for sourcing personnel and suppliers, cooperated with suppliers to improve
and business ethics. In addition, we have stepped up light-based
sourcing quality and efficiency, and helped suppliers improve services and product quality.
We have formulated and improved the Light-Based Supplier Management punishments, and strictly held sourcing personnel
Mechanism. Suppliers’ performance is evaluated in the stages of bidding, who violate rules accountable to raise suppliers’
contract performance, and maintenance with light-based management so anti-corruption awareness and service capacity
as to strengthen the management of supplier selection, employment, with rewards and punishments.
development, and retaining.
Win-win cooperation
We actively build a platform for strategic cooperation and sharing. By
strengthening cooperation with governments at all levels, other outstanding
enterprises, universities, and research institutions, we strive to gather more
Strengthening supplier quality control Improving suppliers’ occupational health resources and forces to complement with each other for mutual benefits
and safety
and common development.
We pay attention to important details in supplier engineering changes, We have established a sound supplier safety
subcontracting, and on-site management. The bid winners are demanded access, review, and assessment mechanism, and
to sign a supply contract to supply materials of designated brands. A third added safety and health clauses in project contracts
party is hired to conduct random inspections during the construction to urge contractors to put in place a sound Strategic cooperation with 7
process to ensure the high and consistent quality of products. occupational health and safety management system.
companies throughout the year
