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China Resources Land Limited: Sunshine procurement for building sound and transparent supplier cooperative system

2017-07-14Sino-Swedish CSR Websiteadmin0010


 
Company profile
 
China Resources Land Limited (hereinafter CR Land) is the flagship subsidiary of China Resources Group engaging in real estate business, as well as one of the most influential comprehensive real estate developers in Mainland China. It was listed in Hong Kong in 1996. 
 
By the end of 2016, CR Land has more than 30,000 employees and has expanded its business to over 57 cities in Mainland China with over 150 ongoing projects. Adhering to the business mode of “residential development + property investment + value-added service”, the company will take the strategic measures of “targeted investment, excellent operation and reform and innovation” in the future to breed the new growing point of values and devote to be a leading and comprehensive real estate developer.
 
Challenges
 
Integrity is the moral bottom line of business, and an important foundation for enterprises to achieve sustainable development. With a large number of employees, huge value chain, and different levels of suppliers in CR Land, the quality of suppliers will directly affect the quality of product quality, service quality and the satisfaction of various stakeholders, and also affect the branding of responsible corporate image. Therefore, it is an important means protect the rights and interests of the company, improve the economic efficiency, ensure the quality of the project and ensure the quality of life of the proprietors by regulating employees to keep integrity, standardizing the bidding and procurement and improving the suppliers’ awareness of integrity.
 
CR Land is committed to building a healthy and transparent supplier cooperation system. From the aspects of employees and suppliers, the company regulates the bidding and procurement work from multiple layers, including codes and contracts, concepts and conducts, and adheres to the sunshine purchase.
 
Making inward and outward codes of conduct
 
CR Land insists on the work ethic of sunshine purchase to regulate its bidding and purchasing from the two aspects of employees and suppliers and from multiple layers including codes and contracts, concepts and conducts.
 
Inward, the company takes the Ten Commandments of CR and the Integrity Working Principle of CR Staff as the codes of conducts for its managers and staff. Based on the company’s rules, regulations and laws, the company strengthens guidance and education and requires managers and staff to follow the rules strictly while cooperating with the suppliers.
 
Outward, the company attaches the Sunshine Manifesto and the Integrity Agreement to each bidding invitation, conveying the honesty idea of CR to the suppliers. Only suppliers who accept the Sunshine Manifesto and the Integrity Agreement of CR are qualified for the bidding and all successful bidders need to sign the Integrity Agreement.
 
Building stratified purchase standards
 
The company publicizes its purchase information to accept tenders of excellent suppliers widely. It also establishes the institutional mode of “separation of powers and evaluation and grading” to ensure the fairness and justice of the bidding and follows the principle of “low prices win” to ensure the fairness of the bidding result.
 
Information disclosure: in order to receive bidding applications of excellent suppliers widely, the company discloses its purchase information to the society on its official website and suppliers can enroll for the bidding on an open bidding platform. Fairness of process: the company establishes three institutions, that is, the bidding and purchasing committee, the bidding working group and the bidding evaluation committee to organize and implement the bidding. “Separation of powers and evaluation and grading” eradicates under-table operation, thus guaranteeing the fairness of bidding process from the setting of institutions. Fairness of result: the company adopts the biding principle of “low prices win” to ensure the fairness of result.
 
Supply chain management
 
In the design phase, the company standardizes behaviors of design suppliers and the selecting process of building, landscape and decoration materials with institutions. It also designs and establishes a design supplier pool, makes appraisal regularly, launches rules for the selecting and governing of design suppliers and no building and decoration material supplier is recommended in this phase.
 
In the bidding and construction phase, the company chooses enterprises with products of best quality as partners to build a high-efficiency, low-cost and high-quality supply chain system. CR also established a supplier management system to regulate the inspection, enrollment, assessment and grading of suppliers of listed companies, regions and cities. The execution of contracts of suppliers is assessed each year, and suppliers with good performance are enrolled in the qualified supplier list and provided opportunities of long-term cooperation.
 
In the bidding and operation phase, there is a series of strict regulations and flow systems covering the earlier period investment, preparation for construction and operation. All the processes are Integrity and open.
 
In the commissioning period, the company promotes service outsourcing actively, disciplines itself and others from aspects of institution and procedure, takes part in the selection and supervision of suppliers, and assumes its social responsibility as a cooperative partner.
 
Fair competition
 
Fair competition and self-discipline. In the process of business operation, CR Land promotes the concept of fair competition in forms of publicity and training, etc. to improve the fair competition and self-discipline.
 
Industry exchange. CR Land cooperates with industry competitors to promote fair competition in the industry through communication and exchanges, and actively participates in industry exchanges to constantly promote the overall development and progress of the industry, maintaining a good market order and competitive environment.
 
Protection of intellectual property rights. CR Land actively cooperates with China Resources Group's various types of rights litigation or administrative complaints, and has effectively cracked down on infringement and protected the legitimate rights and interests of the company. At the same time, CR Land fully respects other people's technology, software, portraits, text and other intellectual property rights, so as to win effective authorization and reasonable and legitimate use.
 
Strategic cooperation
 
CR Land has established the long-term and stable cooperative relations with partners through the enterprise-enterprise cooperation, university-enterprise cooperation, and supplier-supplier cooperation, which has effectively avoided the disorderly competition and non-standard competition behavior in construction market, maintaining the order of the construction market.
 
Achievement
 
The number of cooperative partners increases significantly. Since the implementation of the Sunshine Manifesto in 2011, the relationship between CR and its partners is more intimate. Its cooperative partners increase nearly three times. The number of contracts totally covered by the Sunshine Manifesto and the Integrity Cooperative Principles increased nearly five times.
 
The quality of supplied goods improves continuously. The quality rate of suppliers in the enrollment list is 99% and 5% reach the level of excellence, which lays a good foundation for CR to provide high-quality goods and good services.
 
The market competitiveness of CR improves gradually. By the end of 2014, CR has obtained 176 domestic registered trademarks and another 321 are still in the process of application for registration. Meanwhile, over 42 patents of CR has obtained domestic patent authorization.
 
Prospect
 
To build a healthy and transparent supplier cooperation system is a long-term and complex work in terms of system building and supervision of behavior. CR Land will continue to practice the Sunshine Manifesto, keep self-discipline, and take the lead to strengthen the integrity education for employees, standardize employee behavior, continuing to enhance the supplier's sense of integrity. Centering on the high-quality strategy, it will constantly promote the integration of Sunshine Manifesto and the value chain to enhance the quality of suppliers, continue to improve the satisfaction of stakeholders and finally achieve mutual benefit, win-win cooperation and common growth with suppliers.
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