Volume Two: The Path to Azure Clouds 22. The Procurement Revolution (Part II)

Ever since the incident with Manager Gou, such problems had ceased to occur, as the suppliers gradually adapted to the factory's policies. Once the supplier base stabilized, the establishment of procurement bidding and competitive selection mechanisms was placed on the agenda—a task that was clearly far more complex.

Following the general requirements set by Director Shi, I reported the broad strategy for developing the procurement management system to Division Chief Ruan, who then added a few further requirements. I subsequently consulted with Li Zhengjiang and Xia Shuyong to iron out the specific points of the plan.

After weighing my options, I ultimately decided to let Xia Shuyong take the lead in drafting it. While Li Zhengjiang possessed a wealth of experience, Xia Shuyong displayed a higher level of professional enthusiasm. When I formally entrusted this task to him, he was visibly excited. After all, for a young man, such an important assignment was a challenge, but also a significant opportunity. If executed well, it would constitute a major contribution and a chance to fully showcase his capabilities.

After receiving the task, Xia Shuyong devoted himself entirely to it, working overtime every day beyond his regular duties. When he encountered uncertainties while drafting, he would come to me for guidance. After more than two weeks, he produced the first draft of the system.

I spent two days carefully reviewing his proposal. Overall, it was quite good and largely reflected the strategy we had discussed, but there were flaws. For instance, the scoring criteria for procurement bidding were suitable for most products but not for a few specialized ones. Furthermore, the weight assigned to price was too high; while it partially accounted for price differences based on product content, some quality variations could not be reflected through content alone. Even if the content was identical, similar raw materials could lead to differences in unit consumption, work efficiency, and final product quality due to varying quality levels. Additionally, the workflow was not entirely comprehensive; it lacked a trial mechanism for new suppliers and new products, and it failed to mandate input from the production department.

Despite these issues, I knew that Xia Shuyong’s enthusiasm should be encouraged, even while the system needed refinement. I found him and said, "Shuyong, I’ve read the draft. It’s clear you’ve put a lot of thought into this. It’s a very good start, and reaching this level on the first draft is no easy feat. Every policy requires repeated revisions, especially one this important. Let’s sit down and discuss how to refine it together. Why don't you let Teacher Li take a look, and then we'll discuss it further?"

As I spoke, I watched his reaction, checking for any signs of resentment at having his hard work reviewed by a peer. Had he shown any, it would have indicated a lack of maturity and breadth of mind.

Fortunately, there was not a trace of dissatisfaction on his face; he agreed readily. He was a smart man and understood that, as the primary drafter, having everyone pool their wisdom to improve the system before presenting it to the factory leadership was ultimately in his best interest.

Li Zhengjiang was indeed experienced. After years of weathering so many storms, he had truly achieved a state of indifference to favor or humiliation. Although he had passed the age threshold for promotion, he did not coast toward retirement like many others who had lost hope for advancement; he remained conscientious and dedicated.

After Li reviewed it, the three of us discussed the system again. Drawing on his rich experience, Li offered many excellent suggestions, many of which hit the nail on the head. I was deeply impressed, and it was clear that Xia Shuyong felt a genuine sense of admiration as well.

I synthesized Li’s suggestions with my own, providing detailed instructions and arrangements for the revisions, all of which Xia Shuyong recorded meticulously.

A few days later, Xia Shuyong produced a revised draft. Li and I reviewed it, making final adjustments to the details and wording. Once he had incorporated all changes and I was satisfied that it was sound, I decided to bring him along to present the policy to Division Chief Ruan Changqing. Young people need opportunities to shine; give them the chance, and their motivation will soar. Moreover, anyone with a modicum of sense would understand that you are providing them with such an opportunity.

To make subordinates follow you and work for you, beyond knowing how to share the benefits, it is crucial to make them feel that following you offers opportunities and a future. This was something my "future father-in-law," Shu Zhongquan, had taught me. The world has changed; it is impossible to rely solely on idealism and sacrifice. Without tangible benefits and concrete prospects, it is difficult to motivate people.

Soon, the factory passed our procurement system, and we began to implement it strictly.

After more than a year of effort, the factory's procurement work gradually returned to the right track. The acquisition of various raw materials was carried out in accordance with the new system, utilizing open, transparent bidding or competitive selection. Not only did the work proceed in an orderly fashion, but procurement costs were also slashed significantly. At the year-end summary meeting in early 1999, Director Shi reported that procurement costs had been reduced by approximately 3 million yuan compared to the previous year, pushing company profits to a historical high of over 20 million yuan. However, there was a bittersweet note: sales growth had failed to reach the planned 10%, hovering at only about 6%. Whether it was because no one noticed or no one wanted to bring it up, the routine discussion following the meeting did not touch upon this issue; everyone remained immersed in the joy of the record-breaking profits.

Due to my outstanding contributions in procurement, shortly after the 1999 annual work meeting—just over a year after I had become deputy head of the First Procurement Section—the organization removed the "deputy" from my title, officially appointing me as the section head. Division Chief Lin Ke told me that I was the fastest person in the factory's history to transition from deputy to head. The factory also provided me with a Motorola mobile phone. I was so excited to have the new phone that I spent a long time tinkering with it.

Shortly thereafter, the factory decided to send me to pursue a master's degree. I had originally intended to sit for the entrance exams myself, never expecting to be sent through the factory's internal training program. I expressed my desire to take the exam independently to Lin Ke. He was a bit surprised at first, perhaps thinking that while others were desperate for such an opportunity, I wanted to turn it down.

Seeing his surprise, I explained, "Actually, I just wanted to test myself. I believe if I review, I can pass."

"Of course I believe you can pass," Division Chief Lin said, staring at me with a smile. "But aren't you worried about the heavy workload? Won't it be hard to find time to review? Shouldn't you be focusing your main energy on your work? Besides, this is an organizational decision. It’s not my place to say much, but you should realize this is the organization's way of nurturing and caring for you."

Given that, I knew I shouldn't say anything more. "Thank you for the organization's concern," I said, immediately adding, "And thank you, Division Chief Lin." Lin Ke simply smiled without another word.

I had originally hoped to apply for "Hero Guo's" graduate program. He had changed quite a bit over the years; he had earned his doctorate, been promoted to associate professor, and become the vice dean of the School of Business Administration at Huajiang University. Of course, I didn't want to join his program for these reasons, but out of my deep respect for his character and a desire to be his student once again. To my surprise, however, the School of Business Administration designated the Dean, Zhu Tongli, as my advisor. With the Dean himself serving as my mentor, I could hardly complain, let alone refuse. I felt I should at least inform "Hero Guo," but when I called him, he said nothing, which I found quite strange.

As for what followed, although there was an entrance exam, it was merely a formality. Following instructions, I called Zhu Tongli to request an introductory meeting, but he claimed he was too busy and simply provided the phone number of one of his current graduate students, telling me to get the study materials from them. I prepared briefly using those materials, and when the exam came a few days later, I found that every question was taken directly from them. Just like that, I passed the exam. By September of that year, I had returned to Huajiang University to begin my MBA.