guide
Xu Tingtao, a senior expert in the procurement and supply chain of Qiqitong: "Many aspects show that digital is of great value to us. It is a gold mine. Enterprises should follow the trend of global digital transformation and tap new growth points for corporate profits."
Recently, the 2023 China Shanghai Purchasing-Supply Chain & Indirect Procurement Annual Conference hosted by Jiancaihui was held in Shanghai. Xu Tingtao, a senior expert in the procurement and supply chain of Qiqitong, came to the scene and brought the "Digital Era, the Path of Transformation and Innovation of Purchasing Supply Chain" Tao" theme sharing . Decipher the importance of digitization in the procurement supply chain, and share the know-how of efficient enterprise development.
01. The digital transformation of procurement is imperative
Digitalization has caused qualitative changes in the business processes of many enterprises.
Recently, the "Overall Layout Plan for the Construction of Digital China" issued by the Central Committee of the Communist Party of China and the State Council, the National Data Bureau and the European Union's Digital Compass 2030 have been established at the national level, as well as the Smart Earth in the United States and the Super Society in Japan. In fact, they are all talking about one thing Things are the digitalization and intelligence of the future.
In China, the overall digital development of enterprises is growing at a compound annual rate of 98%. Our country has already regarded digital as the fifth largest factor of production, that is, the fifth largest factor after land, labor, capital and technology. That is to say, numbers are of great value to us. They are a gold mine. Enterprises should follow the trend of global digital transformation, tap new profit growth points for enterprises, and use the entire Internet to help enterprises develop.
From the perspective of procurement, the current digital penetration rate of domestic corporate procurement is less than 10%, probably around 7.5%. That means that in the procurement management process of most enterprises, because there is no digital support, the entire information cannot be shared and the digital value cannot be brought into play, and the entire procurement process has a relatively large workload, a relatively long cycle, high inventory, and high costs. High, not conducive to business development.
Especially for indirect procurement, for production-oriented enterprises, they will focus on productive procurement, and it is easy to ignore the indirect procurement of enterprises. But in fact, indirect procurement is also very important. It involves all aspects of our business operations. At the same time, the demand for indirect procurement is not as planned as that of production, and many needs are urgent and require a lot of time to deal with. In the face of these situations, we need to use digital means to solve and improve, so as to stabilize the development of the enterprise.
02. How should enterprises do the digital transformation of procurement
First of all, let me tell you about the points that enterprises should pay attention to in the digitalization of procurement. The first point is the online management of the whole process . Only digital closed-loop management can ensure the circulation of business and maximize the value of the enterprise; the second point is business management strategy . The tools shaped by digital transformation help us save workload and free us from tedious work; the third point is efficient internal and external collaboration to improve overall operational efficiency; the fourth point is openness , integrating some internal and external data, and learning from some external tools Ability to improve procurement efficiency; the last point is sustainability , with the maturity of artificial intelligence technology and the accumulation and integration of procurement data, automatic processing, intelligent early warning and intelligent decision-making will be gradually realized.
At present, our commonly used procurement digital transformation tools are generally SRM procurement cloud and mall cloud, and enterprise procurement cloud, based on procurement business to achieve two closed-loop management, supplier life cycle management and procurement process closed-loop management, to achieve procurement management The three main goals are supply guarantee, cost reduction and efficiency improvement. Qiqitong Mall Cloud solves the pain points of the non-production procurement business within the enterprise, realizes the automatic procurement of the business department, releases the workload of the procurement department, and saves an average of 15%+ procurement costs for the enterprise.
At the same time, Qiqitong Procurement Cloud and Mall Cloud can connect to ERP, OA and other systems within the enterprise, break the data islands, form a full data chain of supply chain management, and retain data. In addition, Qiqitong also integrates external data and resources, such as electronic signatures, electronic invoices, OCR identification, credit reporting systems, etc. Using these external resources can effectively avoid risks and improve the supply chain management capabilities of enterprises.
So, in this digital age, how should enterprises build a suitable soil for digital procurement? This is a question that many companies must think about. According to our past customer implementation experience, we generally do three steps, that is, unified planning and distributed implementation.
The first step is to build a good procurement strategy and procurement model, and reorganize the business process from beginning to end, from forecasting to planning, sourcing to supplier management, implementation to execution, and online collaboration throughout the entire process. This is the infrastructure of digital procurement.
The second step is process dataization, online collaboration of the entire procurement process, opening up the upstream and downstream supply chains of enterprises, and realizing information transparency in business processes, so that both parties can achieve information exchange, improve efficiency and reduce costs.
The third step is digital assetization, giving full play to the value of enterprise data, and helping enterprises to make some decision-making analysis and support through multi-dimensional procurement data, so as to continuously optimize our supply chain.
03. Case sharing - procurement supply chain platform of a well-known home appliance company
Finally, I would like to share with you a digital procurement solution for a well-known home appliance company. During the epidemic, the entire home appliance industry experienced a serious decline, but this well-known home appliance company has grown against the trend, mainly because they have built a global procurement supply chain management system. , to achieve global resource sharing and efficient collaboration, and data closed-loop management, through the precipitation of the past few years, the world's relatively high-quality supply resources have been precipitated.
According to their business needs, Qiqitong builds a global procurement digital collaboration platform for them, from forecasting to planning, as well as subsequent execution and delivery collaboration, digital and intelligent management of the whole process, to achieve global category unification and global resource sharing , online collaboration, making the entire procurement process compliant and controllable, and maximizing its value.
l Build a data model to reduce the supply chain cost of industrial operations
According to their characteristics, Qiqitong builds a data model to realize the best forecast of logistics and effectively control the supply chain cost of the enterprise's industrial operation. The actual average logistics cost of a single weekly order in the refrigerator industry of the enterprise is 13 million. Based on the optimal model, it is estimated to be 12.45 million, which can bring about a cost reduction of 550,000 per week, which is 50*55=27.5 million per year. It is calculated according to the actual business execution improvement of 2.7% , Bringing a cost reduction of 720,000 a year.
l Supplier performance appraisal, set early warning reminder
According to the TQRDC scoring system (technology t, quality q, response r, delivery d, cost c), calculate the supplier's monthly score, screen out high-quality and substandard suppliers, set a continuous dimension of substandard performance, and set early warning reminders Reduce business risk.
l Online collaboration throughout the process, saving manpower
In terms of efficiency, in fact, the company’s procurement volume in 2016 has reached 70 billion, and its business has spread all over the world. The fully automated procurement process has greatly saved the manpower of the procurement department, reducing the number of people from 180 to about 20. This effect is quite impressive. of.
From the perspective of digital intelligence, the digital transformation of procurement has become the best "assistance" for the procurement center to move towards the profit center. In the future, Qiqitong will continue to explore more procurement scenarios, give full play to its own advantages, provide more enterprises with more suitable procurement digital soil, and help enterprises develop efficiently.