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JD.Com Revolutionizes The Traditional Process Of Procurement

Businesses big and small sell stuff to consumers. But the price of doing business involves buying what you need to get things done. When a company reaches out to purchase supplies, it’s called procurement. The larger the company, the bigger the procurement effort. The process is often cumbersome and opaque. That’s because, historically, it has involved meeting with dozens of suppliers, sitting down and paging through catalogs, bargaining for prices – and much more. Sometimes the right hand doesn’t know what the left hand is doing. But now China’s biggest e-commerce company, JD.Com, is determined to revolutionize the procurement process – in fact, it already has. Any company can now partner with JD.Com to set up a procurement channel (

Essentially, this creates a one-stop shop where a company can handle all its procurement in one place. Best of all, the JD.Com high tech system has brought transparency to the process. The early results have been remarkable. Companies report procurement efficiency process improvements of 50%. Users have also been able to trim an average of 15% from procurement budgets. For companies that spend hundreds of thousands of dollars (or millions) buying what they need, JD’s system is a major game changer. JD.Com works with more than 5,000 companies. Every one of them can embed and integrate their own ERP (Enterprise Resource Planning) systems into the JD system.

This creates a seamless synergy making the process much more efficient, transparent, faster – and with significant cost savings over the old way of doing things. Another key area is MRO specific procurement. MRO stands for Maintenance, repair and operations. This is a critical part of the overall supply chain. JD.Com has recently added an MRO service to its support portfolio. Take a closer look at Major top quality brands, such as Volvo, Siemens and Bosch are already on board and taking advantage. Another company, Southwest Cement, leveraged JD resources in supply chain and logistics to lower its procurement costs by 20%. Chunzheng Song, Head of JD Business, said his company’s re-invention of the procurement process has been years in the making. It is the result of years of intensive study of enterprise customers.

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