What is the reaction to the quarantine of a business that cannot suspend its activities but has to operate under any circumstances? And how does it use its core competencies to help the community? Maksym Leontiev, the Head of the Procurement Business Division, HD-Group, and kmbs MBA graduate, told about this within the framework of kmbs ALUMNI stories project.

About internal preparation

HD-group includes grain processing companies, bakeries and flour confectioneries, processed food production, jams and confiture production, procurement, and logistics organization companies. In total, more than 3 thousand people are employed at the holding.

We have watched the crisis approaching in advance. We watched what was happening in other countries and understood that we had to get ready – after all, bread production is strategically important for the country, so we should work under any conditions.

Already in early March, we took a decision on the products to be provided to our manufacturing sites, ways to protect our employees, and things to be procured. And due to all this, even before the first coronavirus patients were identified in Zaporizhia, we were ready: we had a stock of antiseptics, provided drivers with glasses and gloves, purchased thermometers so that a sick person was not allowed to a manufacturing site. Also, we changed the requirements for first aid kits available at factories and additionally purchased whatever needed.

In fact, the hardest part was to decide what things exactly we needed and their amount. And now internal needs are satisfied in the standard mode.  Areas of responsibility are distributed between people, we monitor whatever is required to be additionally ordered.

About procurement practices

All procurement services in our holding are unbundled in a separate business – TradeHub. In fact, factories send us the task of providing everything they need. We also serve several external customers. More than 10 managers work in TradeHub. Nowadays, they work remotely, from home.

Our procurement competencies have come in handy in the current situation. We managed to quickly understand the nuances, such as differences between masks needed at manufacturing, what antiseptics can be used, the places they are available, and more. So now we not only satisfy internal needs but also help others with the procurement of protection equipment. When they contact us, we quickly understand – what they need and in what quantities. We have a designated person in charge of purchasing the goods needed during the epidemic.

About aid to hospitals

The owners of our holding have initiated aid provision to hospitals. They have created a charity fund to spend money on things that are urgently needed. For example, we purchased 300 pairs of glasses for doctors, masks. We are already distributing the first coronavirus tests to hospitals, and we are expecting several hundred of these more this week.

We puzzled out the types of protective suits. Unfortunately, nowadays it is almost impossible to buy the best professional medical suits in the world. However, there are local manufacturers, we have learned what they offer, collected samples and now present them in hospitals.

We also work on medications recommended by the Ministry of Health to alleviate the symptoms of coronavirus, find out where to buy them. We will continue to help hospitals with these issues: to find providers with stock, their prices, and pass on this information. The hospitals will then determine what they need most, and we will assist with procurement. There is no shortage now, except for a few medicines.

Our competence is to offer the best solution in terms of price and quality. We have become an external tender department that simplifies things for hospitals. We currently work with 6 base hospitals in the region.

About changes in the market

We see that the market has started to adapt to demand very quickly. For example, one of our customers is Pology Chemical Reagents Plant. Previously, it was focused on the manufacture of mixtures, but in the current situation, it managed to quickly purchase alcohol and start making antiseptics.

When things started getting worse, people began to buy up masks, disinfectants. Now the market has grown. Companies purchased alcohol, set up production... If two weeks ago an antiseptic was available for only UAH 300 per liter, now it is easy to find it even less than for UAH 200.

The same about masks. Initially, there were few manufactures that made them. Some batches were imported, but these were quickly bought out. However, new manufacturers started to emerge quickly and some companies changed their profile. For example, one of our suppliers, which used to manufacture laptop cases, now sews masks at an affordable price. Another company is currently collecting orders for masks and they will cost less than UAH 10. The supply grows and prices fall. I believe, in 2-3 weeks the hype will go down altogether.

In my opinion, the task of business today is to help government organizations (including hospitals) to make quick and quality decisions and to implement them quickly. And that's just what we do.