Stabilizing Production with Emergency Procurement amid Raw Material Shortages
OPTC produces PTA, a primary raw material for FENC’s polyester production. In early 2022, an accident prolonged the annual maintenance unexpectedly. The incident caused PTA shortages and disrupted the polyester production. OPTC responded immediately, coordinating and forming an emergency response team with the procurement team for primary raw materials, Shipping Department and Fu-Ming/Fu-Da Transport Corporation.
Within a short time frame, the procurement team located qualified suppliers, negotiated reasonable purchasing prices and prepared the contracts. However, the purchases had to be shipped during the Chinese New Year, a time when shipping charges were at the peak, shipping schedules were unpredictable and container slots were lacking. The Shipping Department applied for import duty exemptions for PTA at the Industrial Development Bureau and confirmed the shipment schedule with the suppliers. The department then immediately took care of customs clearance and moved on to the unloading and pick up operations. Arrangements were made with Fu-Ming/Fu-Da Transport Corporation to transport the materials between Taipei Port and OPTC, which then proceeded to transfer the materials.
This crisis was averted thanks to the collaboration of the units and subsidiaries of FENC. With swift actions, this interdepartmental and inter-company team ensured the stability of FENC’s production operation and protected customers’ interests with uninterrupted supply.