Public Procurement Service Expands Annual Supply Contracts for Stockpiled Materials to Respond to Supply Chain Crises
On May 16, the Public Procurement Service announced that it will expand its annual supply contracts for non-ferrous metals in order to establish a stable supply chain for key national resources.
The annual supply contract, which sets a fixed quantity for supply with a contractor over the course of one year, was introduced on a trial basis last year. Following the successful operation of the annual supply contract in 2024, the Public Procurement Service will expand the range of items covered from only zinc to include aluminum, copper, and tin.
The Public Procurement Service explained that it will increase the number of items covered by the annual supply contract, focusing on those with high import dependency and significant market demand, which require a stable supply chain.
Under the annual supply contract, the designated items can be secured in a timely manner by shortening the number of bidding days, and the supply will be relatively less affected by raw material price volatility. In addition, it is expected to help secure quantities quickly and stably in the event of a supply chain crisis.
This year, the Public Procurement Service's annual supply volume will account for about 30% of the total volume purchased by the agency last year. It is planned to be used to increase stockpiles in preparation for supply chain crises, resolve raw material supply shortages during such crises, and support stable operations for domestic manufacturing companies.
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No Joonghyun, Director of the Public Materials Bureau at the Public Procurement Service, stated, "The annual supply contract for stockpiled materials is an effective procurement system that enables a rapid and stable response to supply chain crises by securing quantities quickly and reliably." He added, "Taking into account the increasing global uncertainty, the Public Procurement Service will continue to expand the scale of stockpiles and pursue greater efficiency in the stockpiling system, thereby working to stabilize the supply chain for key national raw materials."
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