‘New Aeolus’ saves costs through materials purchasing strategy

Beijing – ChemChina-owned Aeolus Tyre has saved over €6.4m in 2017 through a new purchasing strategy, established following its integration last year with Pirelli & C. SpA’s industrial unit.

In a recent ChemChina statement, the Jiaozuo-based industrial tires maker linked the gains to “collaborative purchase” of natural rubber and other raw materials.

Describing itself as “New Aeolus”, the company said it had “purchased over 100 thousand [units] of raw materials via an e-commerce platform between January and October 2017.”

On-line purchase prices were “lower than the SICOM market price by more than 4%,” according to the statement.

The company added that it had taken purchase management as one of its “core competencies” since its integration with Pirelli.

As part of this, the Chinese tire maker has aimed for a “global resource” management strategy, modelling Pirelli’s experience in the Chinese domestic market.

Additionally, Aeolus set up an Asia-Pacific procurement head office in Beijing.

This, said ‘New Aeolus’, “has significantly improved its level of purchase management.”