How does a business that cannot go into quarantine but must operate under any conditions respond to a crisis? And how does it use key competencies to help the community? Maksym Leontiev, head of the procurement business direction of HD-group and MBA graduate of kmbs, talked about this as part of the kmbs ALUMNI stories project.

About internal preparation

HD-group consists of grain processing enterprises, factories for the production of bakery and flour confectionery products, groceries, a factory for the production of jams, preserves, companies for organizing procurement and logistics. In total, the holding employs over 3,000 people.

We observed the approaching crisis in advance. We looked at what was happening in other countries and understood that we needed to prepare – after all, bread production is strategically important for the country, so we must work under any conditions.

Already at the beginning of March, we made decisions about what the enterprises needed to be provided with, how employee protection would be carried out, and what needed to be purchased. Thanks to this, even before the first cases of coronavirus appeared in Zaporizhzhia, we were ready: we had a stock of antiseptics, provided drivers with goggles and gloves, purchased thermometers to prevent sick people from entering production. We also changed the requirements for first aid kits that should be at the factories and purchased what was missing.

In fact, the most difficult thing was to determine what exactly and how much we would need. Now, meeting internal needs has already entered a routine mode. There are areas of responsibility distributed among people, and monitoring of what needs to be reordered is taking place.

About procurement practice

All procurement services in our holding are separated into a separate business – TradeHub. Factories actually delegate the task of providing everything necessary to us. We also serve several external clients. In total, more than 10 managers work at TradeHub. Currently – remotely, from home.

Our procurement competencies have come in handy in the current situation. We were able to quickly understand the nuances such as how masks differ, which ones are needed in production, which antiseptics can be used, where they are available, etc. And now we not only meet internal needs but also help others with the procurement of protective equipment. When contacted, we quickly figure out what is needed and how much. We have a separate person responsible for the procurement of goods needed during the epidemic.

About helping hospitals

The owners of our holding initiated help for hospitals. They created a charitable fund from which money can be spent on urgently needed items. For example, we purchased 300 pairs of goggles for medics, masks. We are also already delivering the first coronavirus tests to hospitals, and we expect a few hundred more this week.

We figured out the types of protective suits. Unfortunately, it is now almost impossible to buy the best professional suits for medics in the world. However, there are local manufacturers, we found out what they offer, collected samples, and will show them in hospitals.

We are also working on medications recommended by the Ministry of Health to alleviate coronavirus symptoms, finding out where they can be purchased. We will continue to help hospitals with this: finding out which suppliers have stock, what their prices are, and passing this information on. Then hospitals determine what they need most urgently, and we assist in procurement. There is currently no shortage, except for a few drug names.

Our competence is to offer the best solution in terms of price and quality. We have become an external tender department that simplifies the lives of hospitals. We are currently working with 6 reference hospitals in the region.

About market changes

We see that the market is very quickly starting to adapt to demand. For example, one of our clients is the Polohy Chemical Reagents Plant. Previously, it specialized in the production of mixtures, but in the current situation, it was able to quickly purchase alcohol and start producing antiseptics.

When the situation began to escalate, people started buying up masks and disinfectants. Now the market has expanded. Companies have imported alcohol, established production... If two weeks ago you could only buy antiseptic for 300 UAH per liter, now it is easy to find it for less than 200 UAH.

The same goes for masks. Initially, there were not many enterprises producing them. Some batches were imported, but they were quickly bought up. However, new manufacturers began to emerge quite quickly, and some companies changed their profile. For example, one of our suppliers, who made laptop covers, is now sewing masks at an affordable price. Another company is now taking orders for masks, and they will cost less than 10 UAH. Supply is increasing, and prices are decreasing. I think that in 2-3 weeks the excitement will subside altogether.

In my opinion, the task of business today is to help public organizations (including hospitals) make quick and quality decisions and implement them quickly. And that is exactly what we are doing.

Maksym Leontiev: "We have become an external tender department that simplifies the lives of hospitals"