Siheyuan, my new life

Chapter 1036 Day 1 of Purchasing 3 Shares

As the familiar, upbeat song "We Workers Have Strength" blared from the loudspeaker in the broadcasting room, Zhao Xiangdong, the section chief of the third purchasing department, quickly tidied up the documents on his desk, put them in the drawer, and locked them, all while smiling and saying, "Xiao Guo, it's time to go home."

Upon hearing Zhao Xiangdong's words, Guo Yongping quickly stood up, took a stack of receipts, and walked to the other man's desk: "Section Chief Zhao, I've reviewed all these receipts. Please put them away." Earlier that day, Zhao Xiangdong had given him a detailed explanation of the specifics of the Third Section's responsibility for the steel rolling mill's unplanned material procurement. He had also taught him how to deal with leaders of the communes and brigades below, as well as some special considerations. Finally, Zhao Xiangdong presented a thick stack of receipts—the Third Section's inventory receipts for the month's procurement—to familiarize him with the names and prices of items to be purchased in the future. Of course, due to the current tight supply of materials, the actual prices of various items had also risen sharply. The Third Section's weekly work meeting on Monday mornings typically included assigning each person's procurement tasks for the week and announcing the latest procurement prices.

From Zhao Xiangdong's somewhat veiled words, Guo Yongping could naturally understand that the latest unplanned purchase price offered by the steel rolling mill's purchasing department was the highest price the factory could accept. As for the purchasing staff being able to acquire goods from the communes and production brigades at lower prices, that was the purchasing staff's skill, and the difference was their personal gain. This was an open secret among purchasing staff, and it was precisely because purchasing staff could obtain extra benefits that many people were quite envious. However, being able to be a competent purchasing staff member was not something that just anyone could do.

First, purchasing agents need to build good relationships with the leaders of the communes and production brigades in their assigned areas. After all, there is more than just one Red Star Steel Rolling Mill in Beijing. There are dozens of enterprises larger than the steel rolling mill, and hundreds or even thousands of other factories and mines. As the supply of materials becomes increasingly tight, many factories have successively established off-plan purchasing departments or purchasing units to be responsible for purchasing off-plan materials for their own units.

Therefore, each commune and production brigade is often targeted by purchasing agents from several factories. After all, factories can assign areas of responsibility to their purchasing agents, but purchasing agents from other factories can also purchase unplanned materials from these communes and brigades. However, each commune and brigade has a limited amount of goods available for sale, so in the end, it depends on the purchasing agent's own ability to acquire the goods.

It is said that a family with a daughter will attract a hundred suitors. The communes and production brigades below were happy to see this happen. After all, if they wanted to obtain these unplanned materials, the purchasing agents had to offer a reasonable price. With the existence of competitors, it would be wishful thinking for the purchasing agents of these factories to wantonly drive down prices as before.

However, the maximum purchase price set by each factory for its purchasing staff cannot be too outrageous. It must be at least a little cheaper than the same items sold in the pigeon market, not to mention the exorbitant prices on the black market, which is simply out of the question.

Therefore, the purchase price quoted by the purchasing agents of various units to the communes and production brigades below must be lower than the retail price in the pigeon market. After all, these purchasing agents have worked hard, riding bicycles for dozens of miles, and some places are not very safe now, with criminals often robbing people on the road. These purchasing agents have put in so much hard work and have to bear certain risks. It is really not worth it for the unit to give them a subsidy of three or five cents a day. This is one of the reasons why various units tacitly allow purchasing agents to earn a little bit of the price difference.

As the old saying goes, there are people willing to risk their lives for a business, but no one wants to lose money. Therefore, purchasing agents from various units can maintain a tacit understanding that there is a limit to price gouging and that they must not engage in malicious competition. Otherwise, they will be targeted by their peers, and in some cases, they may even face retaliation.

The communes and production brigades near the capital were well aware that the prices offered by these purchasing agents were lower than those at the pigeon market. However, they also understood that transporting goods to the pigeon market in the capital not only required labor but also carried certain risks. Whether they were robbed en route or unfortunately encountered law enforcement raids on the pigeon market, they would lose everything. Moreover, the goods belonged to the collective and the public; if anything went wrong while they were in their hands, they would have to bear the responsibility. It was better to sell directly to the purchasing agents of these units in the city at a slightly lower price. These purchasing agents were legally going to the countryside to buy agricultural products and game, carrying letters of introduction and purchase certificates from their units. The communes and production brigades selling their surplus agricultural products to these purchasing agents was a legitimate transaction between public entities.

Moreover, by selling surplus agricultural products to these purchasing agents, the leaders of the commune and production brigade not only gained favors but also some benefits. Since ancient times, China has been a society that values ​​personal connections. Except for some special circumstances, such as when the purchasing agent's hometown is in the commune or production brigade, or when they have relatives living there, it is important to know that many production brigades at that time were almost like large clans, with relatives in every household. Therefore, if purchasing agents whose hometown is in the countryside or who have relatives in the countryside have maintained good relations with the village, the village will definitely give them priority in selling surplus agricultural products at the same price.

Other purchasing agents without such connections also used their own methods to purchase the agricultural products they needed. In order to successfully purchase the agricultural products they required, these purchasing agents needed to maintain good relationships with the leaders of the communes and production brigades below. It is said that tobacco paves the way and alcohol opens the path. On the surface, purchasing agents who are engaged in purchasing work have a lot of money to make, but a considerable part of it is spent on cultivating relationships.

Other units are unaware of the situation, but according to Section Chief Zhao Xiangdong, the third purchasing section of Hongxing Steel Rolling Mill provides each purchasing agent with extra coupons for cigarettes, alcohol, cloth, and grain—items urgently needed in rural areas—every month to help them successfully procure the necessary unplanned materials.

Perhaps out of respect for the original owner's uncle, Dou Dagang, Section Chief Zhao Xiangdong took the initiative to introduce Guo Yongping to a lot of information about the Hongxing Steel Rolling Mill today. From his words, Guo learned that the original structure of the Third Section consisted of one section chief and six purchasing agents. However, one of the purchasing agents, named Han Guangcheng, was recently transferred to the Second Section. This Han Guangcheng was the nephew of Section Chief Yu Changgui.

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