Home |
Value-oriented Procurement
Adhering to the policy of Value-oriented Procurement, Transparent Procurement, and Scientific Procurement, LiuGong aims to develop best procurement solutions that meets its strategic needs.
Strategic cooperation, joint innovation, win-win cooperation and benefit sharing
Dedicated to ensuring innovative and industry-leading LiuGong products, LiuGong encourages mainstream partners in the industry to join LiuGong in the early stages of product research and development. Sharing benefits reasonably with our suppliers is the key to assuring supply and improving competitiveness. A reasonable distribution of profits along the industry chain ensures that suppliers achieve reasonable profits and helps to foster a robust industry environment and thus create supply chains for shared success, sustainable development, and competitiveness of both LiuGong and our suppliers.
Quality First: LiuGong is dedicated to establishing the quality values of customers focused, adhering to customer-oriented, providing excellent service and performing the principle of quality first and customer first. Through collaboration along the entire supply chain, LiuGong aims to provide high-quality products and services to customers.
LiuGong has set the aim of “promoting brand strategy comprehensively and focusing on customers ” and the strategy of “expanding developing space with technological innovation, achieving internationalization career with high quality and consistently pursuing customers’ satisfaction ” for future development. Therefore, outstanding suppliers that exhibit consistent high quality and sustainable development capabilities will win more opportunities to cooperate with LiuGong. This means that we expect suppliers to use high-quality components to manufacture our products, and to deliver our products with high-quality services. Ensuring high quality throughout the supply chain helps LiuGong do better in providing high-quality products and services to customers.
Advanced digital technologies for deep collaboration with suppliers
LiuGong has responsive, agile, and reliable procurement systems that help to coordinate information along the supply chain from different dimensions, through multiple channels, and in various forms. Via in-depth collaboration, our partners (such as customers and suppliers) are integrated into LiuGong business rapidly and efficiently. This ensures that data can be monitored from start to finish of any LiuGong operation, and the information is secure, and easily accessible in a range of formats. The application of advanced technologies and digital tools helps to simplify processes. It also makes our operations more efficient, more secure, and easier, and enables low-cost collaboration between LiuGong and our suppliers.
Committed to CSR
LiuGong recognizes the impact that global supply chains have on communities and the environment. We work with suppliers to make Corporate Social Responsibility (CSR) a basic requirement. CSR is integrated into the full lifecycle of our products, and all our suppliers are required to operate in a responsible way that protects communities and the environment. As part of our procurement agreements, LiuGong requires suppliers to abide by all applicable laws, regulations, industry standards, and international standards. We incorporate CSR into our procurement strategies and processes in accordance with best-in-class practices and ensure its effective implementation in procurement business. Following the principle of continuous improvement, we identify and manage CSR risks in the supply chain together with suppliers. CSR is part of our “Quality First” strategy. We encourage suppliers to improve continually by paying premium prices for higher quality deliverables.
Transparent and open procurement, zero tolerance for bribery
LiuGong advocates operational compliance with all applicable laws and regulations, and strives to build a fair, transparent, and open procurement environment. In its procurement activities, LiuGong has established robust monitoring and oversight systems to manage procurement risks before, during, and after purchases are made. This ensures the company’s procurement work is carried out securely.
Disclaimer
LiuGong is committed to building a transparent and open business environment, and helping suppliers to understand and be aware of LiuGong ‘s global procurement policies and requirements, therefore the common interests of suppliers and LiuGong will be respected and protected.
Suppliers shall actively and prudently check through the public email publicized on this disclaimer for the authorized procurement signatories of LiuGong. Any contract signed by the person not authorized by LiuGong procurement without verification in advance will not be legally binding upon LiuGong, and suppliers shall bear all the losses arising therefrom.
Purchase contract public email：procurement@r.ymsl.com.cn
Transparent Procurement Principles
Fair, open business environment
1.To keep our procurement processes fair and open, we ask suppliers to inform us if they have any relationship with LiuGong that could cause a conflict of interest. Conflicts of interest may arise in the following circumstances:
（a）A current or former LiuGong employee is a direct investor or works for the supplier.
（b）A close family member of a LiuGong employee is a direct investor or works for the supplier. Close family members means spouses, children and their spouses, parents or parents-in-law, siblings and their spouses.
2. No recontracting
LiuGong carefully chooses suppliers in whom we have confidence, and we want to work directly with the suppliers we choose. We hope that suppliers will not recontract or subcontract their LiuGong projects without getting permission from LiuGong first. If a supplier does sign over its LiuGong contracts to another company without our agreement, LiuGong may apply penalties.
3. No bribery of any form
LiuGong is committed to zero commercial bribery in our supplier relations. Commercial bribery can take the following forms:
（a）Giving a LiuGong employee cash, securities, valuables, kickbacks or commissions.
（b）Organizing for a LiuGong employee to go on holiday, enjoy entertainment, go to the gym or attend a conference in a holiday destination.
（c）Arranging work or paying expenses the family and friends of a LiuGong employee.
（d）Bribing a LiuGong employee through an agent or middleman.
4. No deception
LiuGong expects high quality materials and services from our suppliers. Suppliers may not deliver any material that does not meet technical requirements, or that does not comply with current industry standards. All documentation, data, descriptions, and verbal communications should be honest and accurate.
Complaints and feedback
If you ever see any problems when you are working with LiuGong procurement, please send an email to the Discipline Inspection and Supervision Department. We need to know about misconduct, so that we can sort the problems out. In particular, please tell us about bribery, kickbacks or commissions, conflicts of interest, deception, or employees using company resources for personal gain. If you feel you have been treated unfairly, discriminated against, or misled, please contact us as well.
Email：lgjc@r.ymsl.com.cn
Tel：+86-772-3886010
The Discipline Inspection and Supervision Department is an independent audit department within LiuGong. It is responsible for handling complaints from LiuGong suppliers. LiuGong will handle all complaints in the strictest confidence.
