Due to the reduction in railway speeds, Jielong Expressway faced pressure to lower its toll prices. To cut costs as effectively as possible, the company initiated an open tender for the annual procurement of auto parts worth nearly 8 million yuan. This move marked a shift toward market-oriented and cost-efficient operations. After the fifth major speed increase on the railways in April, Jielong Expressway adjusted its Eastern Route tolls in mid-May. However, rising costs of production materials like oil and tires, along with fierce competition from existing market rates, have significantly impacted the profitability of highway operators.
According to a spokesperson from the Czech Expressway Group, prior to implementing the tender system, the procurement of auto parts was highly random, with inconsistent quality, pricing, and performance. To eliminate counterfeit or substandard parts and better control expenses, the company decided to conduct open tenders for the purchase of auto parts. The tender covers essential items such as tires, lubricants, auto glass, and accessories used by high-end buses from brands like VOLVO, Neoplan, Daewoo, and Ankai.
As reported by Jielong Group, the procurement through competitive bidding is expected to significantly reduce costs, enhancing the company's competitiveness against the railway. This initiative marks the first time that a transportation enterprise in the province has publicly invited bids for bulk purchases of auto parts and accessories. The move reflects a broader trend of adopting more transparent and efficient procurement practices in the industry. Source: Hanwang
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