UBT-Uralvagonzavod to do purchasing for Uralvagonzavod Corporation

28 July 2014 (15:13)

July 28, 2014. Another step was made on the way to deeper integration of Uralvagonzavod Corporation’s member enterprises. From now on, all of the purchasing for all of Uralvagonzavod Scientific & Production Corporation’s member enterprises (of which there are about forty plants, design bureaus, and scientific research institutes located all over Russia) will be handled by UBT-Uralvagonzavod, the corporation’s press service reports.

Prior to this, UBT-Uralvagonzavod only used to liaise with the corporation’s ten largest enterprises and made some 40% of their accumulated purchases. Other companies were responsible for their won purchases. In May 2014, some amendments were made to the Administrative Offense Code that made the customers and their management responsible for violating Federal Act 223-FZ on the purchase of goods, work, or services by certain types of legal entities, which made the corporation reconsider its purchasing policy.

It was decided by the management that the purchasing practices of all the member enterprises should be changed in order to both reduce risks and unify purchasing activity on the whole. The new purchasing mode will result in accumulation of all the data on purchasing within one system and one information resource and in making the best of existing market competition thanks to the use of e-trading sites. This will attract the attention and interest of more potential suppliers and, in the end, should lead to lower prices. What is more, the company will adopt a unified supplier cooperation policy which, among other things, will make them more responsible towards the corporation.

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