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Since 2011, China National Heavy Truck Trucks Co., Ltd. has increased its efforts to leanly improve supplier management and supply chain building to ensure that the matching prices have steadily dropped, and the quality of accessories has steadily increased. Recently, in 2012, tender procurement implemented five measures to reduce the cost of procurement:
First, the suppliers will conduct regular comprehensive evaluation according to the quality level, supply capacity, service quality, etc., and classify and manage them to provide basis for optimizing the supply chain and eliminating unqualified suppliers. During the bidding process, more than 40 unqualified suppliers were eliminated at one time.
Second, early establishment of ancillary product costs constitutes a database, using information technology for bidding and procurement to reduce costs to make a good pulse. During the procurement tendering process in 2011, China National Heavy Truck Truck Co., Ltd. required suppliers to provide details of product cost components, and thus Sinotruk Truck Co., Ltd. also established a database of ancillary product costs early.
The establishment of the database is to provide a reference for daily supervision of the supplier's product materials, weight, etc. Once the weight and material of the single product weight and the actual cost are found to be inconsistent, the Sinotruk truck shares will re-evaluate the supplier's purchase cost. , and reimbursed the products that have already occurred. Second, the database provided basic data and provided confidence for Sinotruk truck shares to negotiate with suppliers. 
Third, China National SINOTRUK Trucks Co., Ltd. further improved supplier access criteria. In accordance with the Group's PPAP process and with reference to the admission criteria of the German Man Company's ancillary products, China National Heavy Truck Trucks shares re-entered the supplier. All important quality characteristics of key products are clearly defined, databases are established, and management is performed. These quality characteristics are explicitly proposed as high-voltage lines. If they are not reached, it is impolite to directly disqualify them.
Fourth, China National Heavy Truck Truck Co., Ltd. strives to improve the supplier assessment mechanism. A more reasonable assessment mechanism for suppliers is being established, and the daily performance of suppliers will be assessed through measures such as economic penalties, quota adjustments and fund distribution incentives, so that suppliers will fully feel the seriousness, reasonableness, and rewards and penalties of the assessment mechanism.
Fifth, we regularly hold regular meeting of suppliers' index optimization. The technology, quality departments and suppliers will discuss the inspection documents, technical specifications, test reports and specific management indicators and optimize the laboratory requirements, and propose incentive rectification measures. Strengthen supplier management and services from the technical and quality levels.