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Digitalized procurement in China to exceed 1 trillion yuan

By Sun Chi | chinadaily.com.cn | Updated: 2020-07-01 16:39
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A worker welds a truck in JAC Motors' Shandong factory on May 31, 2020. [Photo/Sipa]

The scale of enterprise digitalized procurement in China will hopefully exceed 1 trillion yuan ($141.56 billion) this year, according to a report on enterprise digitalized procurement by CCID Group and the Research Institute of China International Electronic Commerce Center on Wednesday, China Securities Journal reported.

The report showed business transaction volume in enterprise-level electronic commerce stood at 20.46 trillion yuan in 2019. Among these, digitalized procurement scale reached 590 billion yuan, up 64 percent year-on-year, becoming a fresh driving force in enterprise-level e-commerce development.

"The pandemic makes people in all industries rethink risk-resistance capability in supply chains, and made them do some adjustments. With more efficient reactions, more diversified compositions and more tenacity, digitalized supply chains driven by digitalized procurement will realize a seamless connection between supply and demand in a better way, forcing enterprises in the upper stream of an industrial chain to accelerate digital transaction, expediting the arrival of industrial digitalization," said Li Mingtao, director of the Research Institute of the China International Electronic Commerce Center.

Compared with the traditional enterprise-level e-commerce mode, the digitalized procurement better conforms to realistic demands in current digitalized transformation for enterprises. According to the report, when the growth rate of enterprise-level e-commerce trade volume dropped by 8.4 percent in 2019 from the previous year, the digitalized procurement scale maintained a high-rate increase of 64 percent from that in 2018.

As per the report, enterprise procurement has evolved in acceleration from purely online procurement to digitalized procurement management, digitalized supply chain services and digitalized whole industrial chain services. Procurement service chains led by digitalization are expanding to value chains. Digitalized procurement for enterprises is speeding up.

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