China (Mainland)

Supplier Management

From suppliers to production at various plants to the product delivery to the customers, the principle of aligning economic goals with environmental and social responsibility is applied throughout our value chain. We create added value together with partners that goes above and beyond procurement. 

Ensuring sustainable procurement

  • Together for Sustainability initiative standardizes supplier audits in China
  • Supplier training with a leading university

 

BASF is a founding member of the Together for Sustainability (TfS) initiative of leading chemical companies for the global standardization of supplier evaluation and auditing. With the implementation of TfS, we promote sustainability in the supply chain. The initiative aims to develop and implement a global program for the responsible supply of goods and services and improve suppliers’ environmental and social standards. The evaluation process is simplified for both suppliers and TfS member companies through a globally uniform questionnaire. Globally, members of the initiative conducted a total of 3,767 sustainability assessments and 358 audits in 2018, including a large number in Greater China. Several hundred suppliers attended sustainability training in Shanghai as part of the TfS initiative in 2018.

We continued our collaboration with the East China University of Science and Technology to instruct suppliers on sustainability practices. More than a hundred suppliers received training in 2018.

Building a smart supply chain

  • Improving logistics visibility via digital logistics tools
  • Cooperating with Shanghai Customs on a pilot big data platform for fast clearance

 

Digital technologies are providing opportunities to improve efficiency and better support our customers with proactive location and delivery information. 

Since 2018, a number of digital tools have been deployed to track and trace logistic status in Greater China. The Elementum system enables a close tracking of maritime and air shipment of imported cargos. Using Global Positioning System (GPS) technology, the Weika system allows users to access real-time truck locations within mainland China via a WeChat-based application. Several key customers have signed up as pilot users in 2018.

Domestic intermodal transportation is a common yet highly complex route, with a single journey of more than 1,000km going through multiple transport modes such as rail, road and ship. A cross-functional team from BASF worked together with G7, a location-based-service (LBS) solutions provider, to develop a digital asset tracking system for ISO tanks. With an LBS tracker installed in the container, the system improves ISO tank utilization and increases the logistics visibility for customers. The system finished its trial successfully at BASF Markor Chemical Manufacturing (Xinjiang) Co., Ltd. in Korla, Xinjiang in 2018.

The digital asset tracking system for ISO tanks can identify delays or abnormal move in a timely manner to ensure timely delivery and product safety.

In order to improve customs clearance efficiency of goods while ensuring effective supervision, Shanghai Customs developed a big data platform for cross-border trade in 2018, which contains the complete trade chain, logistics chain and other information. Relying on digital technologies such as cloud computing and the Internet of Things, the platform realizes the immediate release of goods with transparent data and authentic verification.

BASF supports Shanghai Customs in promoting and implementing this rapid customs clearance model. As a pilot enterprise, BASF has actively participated in discussions and dialogs with Shanghai Customs, put forward suggestions, and timely adjusted internal processes. At present, BASF declares online two days before the goods arrive at the port. Once data comparison and customs verification on the platform are completed, the goods will be released directly upon arrival. With this model, the customs clearance time of goods has been reduced from 48 hours to a few hours, improving delivery efficiency and saving logistics costs.