The first-ever conference for ChelPipe Group suppliers was recently held in Chelyabinsk. The event was attended by 130 corporate representatives from 80 different suppliers of logistics, raw materials, equipment, and services.
As its main topic, the conference focused on changes in the organization of procurement processes in ChelPipe Group. The company is investing a lot of effort into increasing the efficiency and transparency of procurement along with the reduction of corruption risks.
ChelPipe Group adheres to the principles of fair competition and equal opportunities and is a major stakeholder when it comes to openness and transparency throughout all procurement procedures. In 2017, the company will commission a conflict committee formed from a collective body of representatives of related services intended to resolve disputes and examine applications from counterparties concerning both the results of specific procedures and comments on the arrangement of procurement processes. Employees and contractors of the company can also discuss any issues concerning corruption, fraud, and other abusive practices by calling the 24/7 Security Hotline.
Another important role in the transformation of the procurement system is played by the development of category management. In 2017, specialists from the company's commercial, industrial, and technical departments will join forces to develop the company's procurement strategy in more than ten major categories. Other goals include the establishment of a transparent system of supplier evaluation and effective input control procedures.
To cut down on time required for document processing, the company is switching to an electronic document management system for key accounts and is planning to further develop this experience with suppliers in the future. ChelPipe Group also intends to improve payment discipline and expects to achieve more favorable supply terms.
‘Streamlining the procurement system is a multilateral process aimed at the development of long-term relations with all suppliers and contractors across the board. ChelPipe Group is focused on engaging in an ongoing dialog with market participants to improve the efficiency of procurement processes and expand the competitive environment,’ comments Denis Prikhodko, Sales Director, ChelPipe Group. After the completion of the business part of the conference, the supplier's representatives paid a visit to Vysota 239, plant to manufacture large diameter pipes, and ETERNO plant, a joint project of ChelPipe and RUSNANO.
For reference: ChelPipe Group is a leading industrial group of companies of the Russian iron and steel industry. At year-end 2016, the Company had 16.5% share in the overall shipments by Russian pipe manufacturers ChelPipe Group consists of the following ferrous metallurgy plants and companies: the Chelyabinsk Pipe plant, Pervouralsk Pipe plant, a storage facility used as an outlet to sell tubular goods in the regions, META scrap metal collection and processing company; mainline equipment manufacturers: Pipeline Bends, ETERNO, MSA (Czech Republic); its oilfield service business represented by Rimera.