The Complete Procurement Process at Shanghai Liheshi Furniture

Shanghai Liheshi Furniture’s raw material procurement process spans multiple areas, including supplier development, quality control, and green transformation, forming a systematic operational model. In terms of the types of raw materials procured, the company sources basic materials for furniture production such as wood veneer, lumber, cardboard boxes, hardware, and foam. The procurement department must meet production demands by securing the right materials at appropriate prices, at the optimal time, and in the exact quantities required, all while ensuring quality standards are met. To achieve this goal, procurement staff must not only draft procurement contracts and execute orders but also track delivery schedules, monitor product quality, and conduct regular inventory counts and record-keeping.

In terms of supplier management, Shanghai Liheshi Furniture has established a rigorous audit system. Through the supplier audit process, a list of qualified suppliers is compiled, and suppliers on this list are managed according to a tiered system. Additionally, the company requires the signing of quality agreements or contracts and the submission of quality commitment letters to ensure that every batch of raw materials meets the company’s quality standards. For raw material quality control, the Group has established dedicated Quality Control Centers and Centralized Procurement Centers responsible for testing the physical and chemical properties of raw materials. Should any non-conforming products be detected, they are handled and rectified in accordance with established procedures.

Notably, environmental sustainability has become a key focus in Shanghai Lihe Shi Furniture’s raw material procurement. The company has explicitly adopted the concept of “building a green supply chain” and is committed to driving a green transformation across the entire industrial chain. In practice, Shanghai Liheshi Furniture not only reduces pollution at the source by promoting the use of low-VOC eco-friendly materials such as E0-grade panels and water-based coatings, but has also introduced advanced low-temperature powder coating technology, achieving zero emissions in certain production stages. Furthermore, through collaboration with authoritative institutions such as the China Environmental United Certification Center, the company conducts green supply chain evaluations, carbon audits, and environmental risk assessments, integrating green standards throughout the entire lifecycle of raw material procurement. These initiatives have not only helped Shanghai Lihe Shi Furniture earn the title of “Green Pioneer Enterprise” but have also enhanced its competitiveness in addressing increasingly stringent environmental requirements and changes in the international trade landscape.

In terms of internal coordination, the procurement department must maintain close communication with quality control, production, and technical departments, particularly to reach consensus on conserving production materials and ensuring timely material supply. This cross-departmental collaboration mechanism ensures the efficient operation of the entire chain—from raw material procurement to final product delivery—thereby supporting Shanghai Liheshi Furniture’s overall strategic positioning as a commercial and contract furniture manufacturer.