Public Procurement Service praised for early detection, overseas sourcing, rapid domestic supply and systemic reform
A central government agency's proactive response to a diesel exhaust fluid shortage — which minimized public inconvenience and helped stabilize industrial production — has earned national recognition.
The Public Procurement Service announced Wednesday that its policy on "responding to the vehicle DEF supply chain crisis and innovating the national strategic stockpiling system" had won the grand prize at the 15th Korea Policy Award, organized by the Korean Association for Public Administration, chaired by Lee Seok-hwan.
The Korean Association for Public Administration is a leading academic body in public administration and policy. It presents the Korea Policy Award to recognize outstanding policies that have contributed to improving citizens' quality of life and advancing national development.
When instability emerged in the Middle East, the Public Procurement Service monitored international raw materials markets and domestic inventory levels, identifying the risk of a DEF supply disruption early. It then worked with relevant agencies and overseas diplomatic missions to find alternative suppliers, negotiating directly with a Vietnamese company to secure DEF supplies. The agency also moved up the shipping schedule for imported volumes to accelerate domestic delivery.
Having experienced the DEF crisis of 2021 — caused by over-reliance on a single, low-cost supply chain — the agency moved quickly to diversify its supply sources and expand public stockpiles, heading off fears of a domestic DEF shortage and preventing disruption to daily life, logistics and industry. It also supported small and medium-sized domestic DEF manufacturers by ensuring a stable supply of raw materials so they could maintain production.
The agency plans to build on this success by developing it into a systematic supply chain management policy rather than a one-off crisis response. It is expanding its stockpiling capacity with a target of securing more than 61 days' worth of key raw materials, including aluminum and copper. Alongside this, it is working to build an "intelligent strategic stockpiling system" that uses AI to analyze international raw material prices and supply risks, enabling early prediction of potential crises.
"Winning the Korea Policy Award is the result of the Public Procurement Service and its partner agencies acting swiftly without missing the warning signs on the ground," Public Procurement Service Commissioner Baek Seung-bo said. "We will continue to secure and stockpile key raw materials to provide a firm foundation for people's daily lives and business activities."
kwonhl@heraldcorp.com
