Selling auto parts for public bidding for the compression cost

Due to the reduction in railway speeds, Jielong Expressway faced pressure from lower pricing competition. To cut costs as efficiently as possible, the company recently conducted its first open tender for the procurement of auto parts worth nearly 8 million yuan annually, aiming to implement more market-oriented and cost-effective operations. Following the fifth major speed increase on the railway in April, Jielong Expressway adjusted the price of the Eastern Route in mid-May, reflecting the need to remain competitive. The rising costs of production materials—such as oil and tires—combined with fierce market competition have significantly impacted the profitability of highway companies. According to a spokesperson from the Czech Expressway Group, prior to implementing this new procurement strategy, the purchase of auto parts was highly disorganized, with inconsistent pricing, quality, and performance. To address these issues and eliminate counterfeit or substandard components, the company decided to adopt an open bidding process for auto part procurement. The tender includes key items such as tires, lubricants, auto glass, and accessories used by high-end buses like VOLVO, Neoplan, Daewoo, and Ankai. According to the Jielong Group, this approach is expected to significantly reduce costs and enhance competitiveness against railways. This move marks the first time that a transportation enterprise in the province has publicly invited bids for bulk purchases of auto parts and accessories. The initiative reflects a strategic shift toward transparency, efficiency, and long-term sustainability in the industry. Source: Hanwang

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