[Reported by China Chemical Industry News] Intelligent Manufacturing: Industrial Products E-commerce Platform Rushes to Cooperate with “+ Chemical Enterprises”

  • May 13,2016
  • From: CCIN
E-commerce is everywhere, from daily necessities to entertainment consumption, to financial planning, even production material purchasing and sales in the industrial field. Nowadays, petroleum and chemical enterprises take the express of “Internet +”. With this brand-new tool and platform, cost decreasing and benefit increasing can be realized and the integration of information and industrialization can be promoted. Upon the “May Day”, the reporter of China Chemical Industry News learned that bulk commodity E-commerce platform based on production material is quietly launching into the petrochemical industry. 
Flourishing of E-commerce Platform 
“We are devoted to developing the global bulk commodity one-stop cross-border E-commerce platform through the entire industry chain. Since its formal operation in last November, CNY 26 billion of online matchmaking trading amount was realized as of the end of March, and it is expected to break through CNY 160 billion this year.” Ding Mingde, Chairman of Shanghai GYIE Cross-Border E-commerce Co., Ltd. said, GYIE is integrated with bulk commodity online trading, market information, online payment and financial derivatives appreciation. As a result, it provides the petrochemical suppliers, trade distributors and downstream terminal clients with resource sharing, international trade, warehousing logistics, trusteeship and clearing, covering oil and chemicals, nonferrous metals, steel, plastics, rubber and other commodities industry. Now, there are 2,600 E-commerce platform registration clients, including over 600 online traders, and six trading products such as methanol, glycol and methylbenzene. 
Jumao Electronic Commerce Co. Ltd. situated in Hangzhou is devoted to developing a full line bulk commodity & industrial whole industrial chain cross-border E-commerce platform, including raw materials such as minerals, energy, chemicals, agricultural products, industrial and manufactured goods, and services such as finance, logistics, large data, technology, consultation and authentication. Among this, the logistic module provides industrial and manufacturing enterprises with centralized purchasing & logistic services to effectively reduce transportation cost, and combines the Internet of Things to realize lean distribution to guarantee the quick and safe delivery of goods. 
“Since its formal operation in January, over 8,600t of MDI of all brands, over 3,500t of TDI and over 4,200t of polyether have been ordered on 9echem.com online; moreover, thousands of registers are newly increased on the website every month.” Cheng Guowen, CEO of 9echem.com said, the service on the platform mainly focuses on the polyurethane industry, whose customers mainly include small and medium downstream industries and small traders based on the amount per customer of 10-30t; the platform mainly provides customers with solutions like domestic online trade and overseas trade, and also online ordering and offline assistance to help customers solve warehousing logistics; meanwhile, it also provides the financial support of technical supply chain. 
“Internet +” has already become the trend
Recently, with the flourishing of domestic industrial product E-commerce platform, the petrochemical industry frequently butting with “Internet +” has become the trend. On April 16, Xi’an Paint & Coating Protection Association signed a strategic cooperation agreement with Beijing Toodudu E-commerce Co., Ltd. They will join hands to create a regional E-commerce platform integrated with “production, supply, sales, distribution and service” based on large market. Taking “supply chain collection & purchasing + supply chain finance” as the two wheel drive and E-commerce ERP as the basic transaction framework, toodudu has strongly promoted block trading and E-commerce sales of Xi’an paint materials and finished products, which provides Xi’an paint painting enterprises with “Internet +” upgrading, store entering, capital operation, network marketing promotion, technical service, etc. 
“We have gradually built three business plates such as chemical production, trading and investment management, and the production and trade volume is about CNY 11.2 billion last year. With so many difficulties, the traditional chemical industry must follow “Internet +”. On the account that GYIE caters to the industry demand, we are expected to cooperate with this platform.” Li Ye, Chairman of Shanghai ULchem Technology Co., Ltd. said. 
Zhou Qiang, Deputy General Manager of Oil Product Department of Shanghai Yangshan Shengang International Petroleum Storage & Transportation Co., Ltd. told the reporter that Yangshan Shengang, as the strategic supplier of GYIE, provides diversified warehousing logistic service, including crude oil, gasoline and diesel, aviation kerosene, naphtha, glycol, methanol and BTX aromatics; with the compression of intermediate links, E-commerce is also conducive to expanding warehousing and financing capacities. 
Shandong Haoxing Silicon Industry Co., Ltd. is the beneficiary of “Internet +”. Chairman Feng Jianming said that they built a “Shandong Silicon Industry” E-commerce platform in a context of surplus capacity of sodium silicate industry; it is simple and fast to operate and run, and also increases a batch of steady new customers. 
Cao Ke, General Manager of Textile Rubber & Chemical Company - China (TRCC - China) told reporter that they changed the traditional purchasing pattern to greatly reduce purchasing cost and time upon cooperation with 9echem.com; with the E-commerce platform, sellers can deliver goods basically within 24h, we never worry about that we cannot receive the goods. 
Comprehensive Engagement in Combination with Actual Demands
“With the purchase and sale trading volume of over CNY 1.2 trillion between nationwide chemical enterprises every year, E-commerce with huge market will bring about new vigor into the development of enterprises.” Wang Shugang, President of China Chemical Enterprise Management Association said, the integration of future chemistry and Internet has a great development space in the future. The convenience for circulation link with the aid of Internet is just the tip of the iceberg; it will be dramatically changed to become an important path for enterprises to resolve over capacity, manage innovation and transform and upgrade. 
The reporter learned that, E-commerce has just started after all, most enterprises only evangelize products via E-commerce platform only, or know industry information and market price, so raw material purchasing and product sales online trade have not been popularized. This is because parts of chemical enterprises worry about massive raw material purchasing and product sales result in greater logistics and warehousing volumes, especially how to guarantee the safety, quality and timeliness of some dangerous chemicals, and how to keep customer trading information secret, etc. 
“E-commerce is a transparent trading platform, now we know market and price ratio on the E-commerce platform more than E-commerce trading. With high quality requirements and important after-sale service, polymers are easy to result in quality buck-passing phenomenon.” Li Jia, General Manager of Chemical Industry Zhonghao Chenguang Research Institute told the reporter that they want to purchase hydrofluoric acid, assistant and other raw materials via E-commerce, but fail to realize in the consideration of haul distance and other objective factors. She hopes that the cross-border E-commerce can carry out import & export one-stop service, helping enterprise reduce cost and expand overseas market. 
“Although E-commerce is the development trend, enterprises avoid seeking quick success and instant benefits and rushing headlong into action.” Liu Pengkai, Chairman of Jiangsu Heisonglin Adhesive Factory Co., LTD. told reporter: we must apply the Internet platform in combination with our own actual conditions. Human factor is still the key factor. If we do not update the ideas of thinking, improve recognition and continue to follow the traditional management pattern, we cannot receive good effect. 
Qin Zhiqiang, President of Jiangsu Chemical Industry Association, believes that E-commerce platform shall have its own feature and march on the diversified path, and can set foot in technical transfer and information service in addition to product purchase and sale. 
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