KT announced on the 9th that it will improve its telecommunications (CT) centered purchasing and partner management processes to achieve fair and transparent purchasing and accelerate the transition to artificial intelligence and cloud technology (AICT).
First, KT established the relationship management principles with its partners, focusing on quality and competition as key keywords. It will implement 'quality-first competition' on a 3 to 5-year basis and introduce a 'partner circulation system' to reorganize the partners. This is a measure to break away from the existing partner operation methods and expand market entry opportunities for excellent suppliers.
Second, KT differentiated quantities through competitive bidding among partners and established a system where excellent external suppliers, not currently in the partner pool, can participate in the competition when necessary. Additionally, the number of contracts with partners will be restricted to unavoidable areas to revitalize the competitive landscape.
Third, KT will change its existing partner classification system to align with AICT. Previously, partners were managed by categorizing them into 'software development,' 'materials,' 'construction,' and 'services.' From now on, software development will be changed to AI and IT and operated in an open format. Consequently, all corporations in the areas of AI, cloud, and big data can be selected as partners. Materials will be further categorized into 'equipment and materials' to comprise partners in the digital transformation (DX) area, including information and communication technology (ICT), while construction will be expanded to include 'construction and execution,' and services will encompass 'services and design.'
Fourth, KT will establish and execute purchasing principles that the KT Group must comply with. In the future, the KT Group will manage all purchases under the procurement department, and all contracts will be based on competition, ensuring transparent selection of partners, prohibiting arbitrary selections outside the procedures, strictly adhering to relevant laws and ethical business practices to manage risks thoroughly.
Finally, KT plans to integrate individual purchasing systems into a next-generation purchasing platform to enhance the visibility and transparency of purchase data and apply artificial intelligence and electronic contract systems to improve the work efficiency of partners and employees.
Lee Won-jun, executive director of KT purchasing, said, "We will strongly promote reforms in purchasing systems and processes to ensure transparent and fair transactions and expand opportunities for excellent suppliers to enter the market." He noted, "KT is open to transactions with excellent suppliers while eradicating solicitations."