For many big companies the process of procurement is not just a major undertaking but a source of major problems. It can be cumbersome, time consuming, but most of all, opaque. All that adds up to procurement costing more than it should cost.
Well, now JD.Com has brought a solution to the procurement process that can make a huge difference in the bottom line of any business organization, large or small. JD.Com, also known as Jingdong, has demystified procurement and brought an all-new level of transparency to the process. Added benefits are more efficient function. That means less time spent on the array of tasks associated with going out to buy the stuff a company needs to get business done.
Jingdong does that by offering a one-stop shop where all procurement can be handled from a single buying platform. In the past, large companies spent numerous manhours sending out dozens of reps to a variety of suppliers. Each buyer met with suppliers, paged through catalogs, made deals, signed bi-lateral contracts, and so on.
Not only is this “old way” of doing things cumbersome and time consuming, it also lacks transparency. That can result in duplication of effort and purchasing materials that may not be needed. But with the Jingdong system, it all gets done from one “locus of control.” Now the right hand always knows what the left hand is doing, so to speak.
Currently more than 5,000 of China’s largest companies have logged into the JD.Com Business site (b.jd.com) where they can operate a highly transparent procurement channel that finds everything they need in one place.
So far, more than 80% of companies Fortune 500 companies in China have enlisted JD Business to handle procurement. It has helped these firms improve procurement efficiency by an average of 50 percent. Even better, it has lowered their comprehensive procurement costs by 15 percent.
Another recent addition to Jingdong’s support portfolio is its MRO-specific procurement channel (imall.jd.com). MRO stands for maintenance, repair and operations. This is another key area of where firms large and small can save significant money on a fundamental process.