Integration between Chemical Industry and Electronic Commerce to Complete the Transformation of B2B Commercial Closed-loop

As explicitly provided in the Guiding Opinions of the State Council on Promoting the “Internet Plus” issued by the State Council in last early July, we shall strive to develop the industrial electronic commerce, encourage the industry and enterprise engaged in the energy, the chemical industry and the steel, and enhance the operating efficiency of enterprises by using the E-commerce platform to optimize the procurement and distribution system. Through this we can see the government’s support to and prospective positive guidance on the active exploration for new model of E-commerce by the traditional industries engaged in the bulk commodity. 

 

 

As early as June 2012, an APP named Didi Dache (literally, Didi Taxi Calling), currently being in scale, was formally in operation. The APP maximized advantage of O2O mode, and truly realized the offline stream guidance in an online way as well as perfect combination between the mobile terminal and the human senses. At that time, the informatization began to display its advantages in traditional industries seemingly irrelevant to the Internet. The drivers truly embracing informatization enjoy their career flourishing by forming their fixed customer groups, while the drivers doubting informatization or taking a wait-and-see attitude or even resisting changes lose their opportunities. 

“Internet Plus” is an information source, and whatever gets “Plus” get positive changes. 

In the past, the chemical enterprises made transactions applying the handicraft account, for which the workload was large and the management was not easy. Without stable historical transaction records, many “wrangles” occurred, and risks cannot be controlled effectively. And now, the merchandisers can make the management over the e-orders by using the Internet technology, and acquire the historical records by a single click. The order status are in full view, which means many tedious intermediate processes can be filtered, thus enhancing the transactional efficiency and the user experience, as well as reduce the management risks. 

In the past, since there is no industry benchmark, the information collected and the price quoted by the chemical enterprises are not clear. Nowadays, the enterprises can obtain the real-time quotes and the one-to-one customized valuation proposal. 

 

 

The core competitiveness and the value of the E-commerce platform are not simple matchmaking (i.e. the information stream). The decisive point lies in three aspects of the information stream, the logistics and the money flow, which are none other than the key to winning brought by the trading closed-loop mode of the E-commerce platform. 

The chemical enterprise, entering the information age, should first get the whole transaction process “Internet-enabled”. The cognition and habits of online transaction for the whole process of traditional transaction mode need to be cultivated through the good experience from online matchmaking. And the transaction data of enterprises can be accumulated effectively, thus gradually realizing structuralization and large scale. A number of transaction data provide the basis for the prediction on the market trend and risks, and benefit multiple aspects such as the centralized procurement and the risk prevention. The charm of the big data era unfolds. 

With the rise of the Internet of Things, the electronic storage and logistics system brings a significant change for the traditional transaction mode. The traditional off-line real goods and materials mode has been transferred into the online electronic information, which is under identification, positioning, tracking and supervision at any time from the first production process and in whole circulation. As thus, the effective risk control is realized. 

The financial pressure features a traditional bulk commodity, including the chemical industry. In the future, the supply chain finance, with its high pain point, light mode, low risk and high yield, will be the highlight. The supply chain finance serves the upstream and downstream firms. With its self-contained information flow and physical distribution to support and coordinate the Internet financial innovation, a huge supply chain finance service mode comes into being. Moreover, more unexpected derivative service modes are formed with the expending of the above mode. The financial service customized for chemical enterprises by the E-commerce platform in the information age is the future core competitiveness in the whole industry. 

The traditional enterprises, like a group of old “handicraftsmen”, exist only for value creation, but also value transmission. Internet is a way to replace the original value transmission mode in an efficient manner, and uplifts the created value attributes. 

The deep integration between chemical industries and Internet represents the general trend, which means to seize opportunities, is to win. By using the modern information, the traditional production and trade pattern, featuring low quality, low efficiency and high energy consumption, can transfer into the advanced one with high technology, good economic benefit and low resource consumption. The traditional “handicraftsmen” are integrated with the Internet in multi-dimension. The only way for the modern chemical enterprises to realize sustainable development is to make active contact with Internet as well as use and embrace it.