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Qarmet: Digital transformation of procurement

Submitted by Вера Александрова on

In the metallurgical company Qarmet, plans are underway to digitise procurement processes. At this stage, the company is finalising the Qarmet Partners portal and outlining the algorithm for interaction with future partners. 

According to media reports, the official representative of Qarmet JSC, Talgat Temirkhanov, stated that the electronic system will ensure the transparency of the company's tender procurement. 

The company explained the move towards digitalisation by noting that, after reviewing existing contracts with contractors, specialists identified a high level of corruption risks. Currently, the company has around 2,800 suppliers, most of whom do not meet basic requirements.

"The direction that Qarmet has chosen in terms of openness, free from corruption. We are ready to work with counterparties who agree to be open, and we are ready to be open. Under such conditions, when we completely eliminate the 'theft scheme' and closed interactions between suppliers, this means that a number of counterparties (under existing contracts) that do not meet our company's qualification requirements will not be able to participate in Qarmet Partners procurement in the future. And this displeases those who have been involved in so-called 'procurement schemes' for years, and we are already receiving criticism. Commissioned criticism directed at Qarmet," said the company's official representative.

It was also reported that technical specifications for future suppliers will be tightened. There are also plans to automate some processes of interaction with Qarmet Partners partners.

"2,800 suppliers is nonsense; you don't see that anywhere! We want the list of potential suppliers to be as accurate as possible. We will conduct audits of contractor organisations; we want to work with contractors that have the necessary premises and warehouse facilities, not those fly-by-night companies created for specific projects," added Temirkhanov.

Furthermore, it has become known that Qarmet will conclude long-term contracts with tender winners. Preference in procurement is planned to be given to local manufacturers and suppliers. 

For context, Prime Minister Olzhas Bektenov previously instructed that the number of long-term contracts between large enterprises and small and medium-sized businesses should be doubled to stimulate domestic production.