The procurement process is shortened by 50%. Jingdong enterprise business helps Chenxun Technology Group to improve procurement efficiency and reduce the hidden cost of procurement management

2022-08-17 17:22 0

/ AsSOC/August 16, 2022 Guangzhou - In recent years, faced with the tide of digitalization, many traditional communication equipment manufacturers have accelerated the transformation and upgrading to the direction of digital, intelligent and high-end manufacturing, in order to accelerate business optimization and upgrading. Chenxun Technology Group is a high-tech group company with design, research, development and production of mobile communication and Internet of things products as its main business. It has three manufacturing plants in Shanghai, Shenyang and Tongcheng respectively. In the past few years, it has been actively promoting digital transformation, driving the upgrade of operation management and business model.

Cao Jing, general manager of IT department of Chenxing Technology Group, said that the group has gone through the common experience of communication equipment manufacturers automation equipment application, ERP and other software system construction, enterprise management process digital upgrade and other digital transformation stages. Among them, as a basic link of enterprise operation, material purchase expenditure is an important component of the total cost of the enterprise, so Chenxun Technology Group in 2017 took the lead in the procurement management of the digital upgrade. "The company's procurement should not only consider the price and other explicit costs, but also consider the hidden costs, such as time cost, process cost, communication cost, operation cost, if the enterprise procurement chain is too long, no doubt aggravate the hidden costs of enterprise management, in order to deal with the long procurement cycle also need to prepare certain safety inventory, digital can well solve the hidden cost loss Question."

IT is understood that in addition to the production of raw materials, there are a large number of IT equipment, daily office supplies, annual welfare and other MRO materials in the annual procurement plan of Chenxun Technology Group. In the traditional offline procurement mode, the above materials need to go through a very long procurement chain. Taking the established procurement plan as an example, it is necessary to confirm the needs with the business department first, then seek appropriate quotations from multiple suppliers, summarize the quotations and submit them to the company's resources department for price negotiation. After confirming the price, the purchase contract is drawn up and submitted to the purchasing department to complete the procurement implementation, and the demand department receives the goods and completes the adjustment It usually takes one and a half months to complete the procurement process.

"The traditional procurement method can control the cost of large quantities of materials, but sometimes it is not flexible enough in the face of high frequency or urgent procurement needs," Cao said.

In order to shorten the procurement process and improve the efficiency of procurement management, Chenxun Technology Group has made a lot of targeted digital attempts, the introduction of Jingdong Huicai is one of them. After the cooperation with Jingdong Huicai, the whole procurement process such as sourcing, online agreement, electronic invoice and approval process has been realized online interconnection. Meanwhile, Jingdong Huicai's rich commodity resources and intelligent product selection recommendation have facilitated enterprises to select products, compare prices and make the best decision plan.

Cao Jing said that the procurement process through Jingdong Huicai has been shortened by more than 50%. The procurement process that used to take one and a half months can now be completed in about 3 weeks, and the delivery efficiency and delivery cycle have been well guaranteed. "For some temporary and urgent purchasing needs, Jingdong Huicai is a guarantee for us. At the end of 2020, the company urgently needs to purchase 50 computers. If it adopts the traditional way in the past, it will take one and a half months to receive the computers smoothly, but this obviously cannot meet the needs of the business in time. Through Jingdong Huicai, we saved many links, such as source searching, inquiry, price comparison and price negotiation, and completed all the processes within 3 days. The computer was directly delivered to the factory and started to use, ensuring the smooth operation of the project. In addition to faster delivery, the price is also more favorable than the channel agent purchase price."

In fact, the cooperation value of morning news Technology Group and Jingdong Huicai is more than that. "The group attaches great importance to the standardization and compliance of the procurement process, so one very important reason for our cooperation with JD is' price transparency '," Cao said. MRO products are complex, and a single supplier can provide limited products. Enterprises have to face many problems during procurement, such as high procurement frequency, excessive number of suppliers, opaque price, difficult to unify commodity standards and high delivery requirements.

Jingdong enterprise business will access a large number of MRO suppliers to Jingdong unified procurement platform, for such enterprise customers as Chenxun Technology Group, the advantage is obvious, through Jingdong unified platform, to solve the problem of commodity standardization. At the same time, JD's transparent and traceable digital platform can realize the visualization and traceability of the whole procurement process, help enterprises to eliminate procurement fraud and improve the transparency of the entire procurement management.

"Choosing to cooperate with Jingdong enterprise business is a very right choice we have made. Especially in such a rapid recovery period, JD's strong supply chain management system and advanced technology advantages can help us recover from the impact of the epidemic more quickly." Cao Jing said.

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At present, under the environment of increasing uncertainties, the operation mode of many enterprises is being driven to change. The supply chain of both daily materials and production and operation materials needs to be more agile and flexible, while the digital supply chain system promoted by digital procurement has more efficient response, more diversified products and stronger toughness. Therefore, more and more enterprises like Chenxun Technology Group begin to realize the importance of digital transformation and upgrading, and accelerate the promotion of digital upgrading of enterprise management. Jingdong Enterprise business has a deep understanding of customers' needs, and has been opening up its technology, supply chain and infrastructure capabilities accumulated over the years to partners and various fields to help more enterprises to transform and upgrade digitally.

Source: Corporate press release
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